RETIREMENT PLANNING » IRA & ROTH ACCOUNTS

Homeowners in their golden years are finding themselves cash strapped, but with a major amount of equity in their home they can benefit from the new Federal housing laws affecting reverse mortgages. The policies have lowered the fees seniors pay to obtain these types of loans as well as raise the amount of money they can borrow.

In effect since January 1, 2009 the law raises the amount of loan money people can get from a reverse mortgage to a whopping $417,000 and up to $625,500 in high-cost areas (pending the amount of equity in your property). Additional revisions include:

• Switching from lower county loan limits (originally $200,160 to $362,790) to a higher national amount
• Limiting the origination fee that lenders can get for federally backed loans to $6000
• Limiting the fees lenders can charge for the loan to up to 2% of the first $200,000 of the loan and 1% on the balance of the value
• Makes it easier for seniors to move into a more practical housing situation by combining two transactions into one step; borrowers can take out a reverse mortgage on the new home.

Fairly new to the mortgage industry, reverse mortgage loans can be a way for seniors to tap into their home equity and get some cash to pay off outstanding debt, meet monthly expenses, or just improve the quality of their lives. The loan amount doesnt have to be paid until the house sells.

For those interested in a reverse loan, there are many factors to consider before committing. There could be a negative impact to your senior government benefit plan, as well as effects on estate planning. It is best to seek the advice of your trusted financial expert before proceeding.

It is important to keep your money safe for retirement and there are many different ways you can save for it. You work hard for your savings and putting it away in an Individual Retirement Account (IRA) is an excellent way to save. There are all types of IRA accounts available and finding the right one for you and your retirement goals is an important step in securing your money and your future.

How an IRA Works for Your Money

The way that an IRA works is that, when you invest in your IRA, the money you earn through investments may be tax-deferred or tax-free. This means that, as long as you dont withdraw from your IRA until you are of retirement age, your money will grow and you wont have to pay taxes on your investment income. This is an excellent way to keep your money safe and growing until you need it for retirement. Also, the money that you invest into your IRA may be tax-deductible, which is another way to help you save for retirement.

Another benefit of an IRA is that, if you intend to withdraw your money before retirement for the purchase of a home or education expenses, you may be entitled to other tax breaks and incentives.

Who Can Help You Set Up An IRA?

There are many different options for you when setting up and IRA. Speaking to a financial planner and doing your research is an excellent way to figure out what the best plan is for you and your money. A quick Internet search can provide you with all the necessary tools and information when planning for your IRA (Individual Retirement Account).

In these uncertain financial times, it is crucial that you invest your money wisely and protect it for your future. Discovering the best options and knowing where your money is and how it is working for you may be the wisest thing you can do to guarantee financial security later in life. An IRA is one of the best places you can invest in your retirement.

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