Retirement Needs
What is one question you should consider when planning for retirement?
How much income do you need?
What is a reverse mortgage?
A reverse mortgage is a loan against the equity in the borrower’s home.
What is an estate?
All that a person owns, less debts owed, at the time of the person’s death.
What are some taxes that must be considered in planning your estate?
Federal and state estate taxes, federal gift taxes, and federal/state income taxes.
Should you keep your house or move during retirement?
This is a personal choice, but it is a question that should be considered when planning for retirement.
Who makes tax-free monthly payments to the borrower in a reverse mortgage?
The lender.
What does estate planning involve?
Preparing a plan for transferring property during one’s lifetime and at one’s death.
What is the federal estate tax?
A tax on property transferred from an estate to its heirs.
What is an investment strategy?
It is a plan that outlines how you will invest your money to achieve your financial goals.
Does a reverse mortgage work the same way as a traditional mortgage? Yes/no, and why
No, a reverse mortgage works the opposite of a mortgage.
What are the goals of estate planning?
Minimize taxes on the estate, make known how you want your possessions distributed, and provide for a smooth transfer of your possessions upon your death.
Is every estate subject to the federal estate tax? Yes/No and why
No, an estate must be worth more than a certain amount to be subject to this tax.
What is one thing to consider when determining how much insurance you need for retirement?
Your anticipated expenses during retirement.
What happens to the borrower's remaining equity in a reverse mortgage?
Any remaining equity in the home after the reverse mortgage is paid off belongs to the borrower or their heirs.
What are some tools used in estate planning?
Wills, trusts, joint ownership, and power of attorney.
What is the difference between an estate tax and an inheritance tax?
An estate tax is a tax on the total value of someone's estate when they die, while an inheritance tax is a tax on the value of assets received by individual beneficiaries after someone dies.
How can you beat inflation during retirement?
You can beat inflation during retirement by investing in assets that will appreciate in value, such as stocks or real estate.
What is the equity in a home?
Equity is the difference between the market value of a home and the amount of money owed on the mortgage.
What is the purpose of a will?
A will is a legal document that tells how an estate is to be distributed when a person dies.
Who pays the state inheritance tax?
The heir who inherits property from an estate pays the state inheritance tax.