Reverse mortgages, age 50 and dietary supplements, SeniorSSuperStoreS Keeping in Touch newlsetter for seniors

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This issue of Keeping in Touch deals with more matters of interest to Prime Time Surfers:
1.) We have heard of Reverse Mortgage, but what do they involve? How can you make one work for you? Is our present climate right?
2.) U.S. citizens aged 50 and older consider dietary supplements essential for people their age; yet few older Americans receive recommendations regarding their use from their doctors. Does it surprise you that pharmacists are a more likely source?

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1.) The Scoop on Reverse Mortgages

Most senior citizens have their Social Security to count on during their retirement years, usually supplemented by savings and investments that they have accumulated over the years in anticipation of retirement. But, what happens when the economy slows down, corporate dividends on stocks dwindles and interest rates on savings and CDs drop dramatically? The nest egg you have counted on isn't supporting the lifestyle you expected.

Often, the equity in a retiree's home is significant; maybe it's the largest asset that you own. The opportunity for you to cash in on that home equity by selling your home and moving into a smaller, more efficient, lower maintenance home with less upkeep is tempting. Besides, you can pocket the difference between the sale of the older, larger home and the cost of the smaller, newer home and use that cash to supplement your retirement income.

Inflated real estate values, however, may make this plan not work out too well if the cost of the new home is too close to the sales proceeds of the older home. And, you must qualify for the IRS tax break rules on home sale in order to avoid paying taxes on such a sale and repurchase of a cheaper residence for this plan to make sense.

With all of these risks and potential investment and tax problems, how else can you use the equity in your home to supplement your retirement income? Perhaps you can tap the equity in your home without selling it by using a reverse mortgage.

The reverse mortgage is a way of taking substantial amounts of money out of your home without selling or ever having to make loan payments (as you would with a second mortgage or home equity loan). And, you don't need an income or other assets to qualify.

Basically, a reverse mortgage is a loan that uses the home as collateral, just as a regular mortgage does. The money can be taken in a lump sum, monthly installments, or as a line of credit. There are no income tax or capital gains tax problems. The borrower does not make monthly payments.

The interest rate changes every month or once a year, depending on the loan structure chosen by the borrower. Rates increase and decrease with market interest rates. Usually, there are caps on how low or high the rates can go.

The borrowed amount, or principal, plus accumulated interest (including interest on interest) must be repaid when the owner moves or when the property is sold, before or after the owner's death (although the borrower can repay earlier). The lender cannot require repayment unless the owner sells, moves or dies.

The total debt of principal plus interest can never exceed the value of the home. Thus, a reverse mortgage does not burden you or your estate with any debt beyond that which can be paid by selling the property. When the home is sold, any money remaining after repayment of the debt goes to the homeowner or heirs.

Typically, lenders determine how much can be borrowed by factoring in the interest rate, the homeowner's life expectancy, the market value of the property and the balance of any outstanding liens (mortgages and home equity loans). Generally speaking, the lower the interest rate and the older the property owner, the larger the maximum possible loan.

The market we're experiencing in late 2001 and early 2002, distinguished by lower interest rates and higher home values, work in favor of reverse mortgages. When rates are low, you can get more money out of your home, and there is likely to be more value left in the property when you sell or pass it on to your heirs.

So, is a reverse mortgage a good idea for you? If you're getting up in years, need the cash to maintain your lifestyle, don't care so much about leaving such a large inheritance for your heirs, interest rates are low and you believe that they will remain low for awhile, and your home would be valued fairly high, then yes, a reverse mortgage may be worth your consideration.

If you would like more information about reverse mortgages, you may visit the following: AARP's reverse mortgage web site (or call 1-800-424-3410); or U. S. Department of Housing and Urban Development(or call 1-800-217-6970).

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2.) Study Finds U.S. Citizens Age 50 and Older Consider Dietary Supplements Essential For People Their Age
Yet Few Older Americans Receive Recommendations Regarding Their Use From Their Doctors
(Courtesy of our friends at PRNewswire.)

A large majority of older Americans, or 65% of adults aged 50 or older, consider supplements "essential" for people their age, according a recent national survey. The results also showed that, unfortunately, only four out of ten older adults have received dietary supplement recommendations from their doctors.

The nationwide survey, commissioned by the National Nutritional Foods Association (NNFA), questioned 736 adults aged 50 or older on their behaviors, perceptions and attitudes regarding the use of dietary supplements. Respondents also were asked about their opinions on current supplement labeling information.

Although most older Americans (70%) take vitamins, minerals or herbs, and expect physicians to be a leading source of information about possible drug interaction, only 40% of older adults have received dietary supplement recommendations from their doctors. And health care professionals are advising women more than men. More than half of women (53% vs. 32% of men) agree with the statement, "My doctors have recommended that I take specific vitamins and/or minerals for my health."

"The report that older Americans expect to discuss the use of dietary supplements with health care practitioners is a wake-up call for both the medical community and particularly for American males," said David Seckman, NNFA's executive director and CEO. "For whatever reason, patients are not obtaining recommendations from their doctors on supplement use. Physicians should make inquiries about what supplements older Americans take to prevent drug interactions and ensure they're meeting nutritional needs."

According to Phillip Harvey, Ph.D., NNFA's director of science and quality assurance, "This segment of the population often takes a variety of medications, so it is even more important for the medical community and the natural products industry to cooperate on issues of education."

Key survey findings:

* When asked which of the following sources older Americans expect to provide them with information about possible drug interactions, an overwhelming majority of the respondents named their pharmacist (84%), followed by their physician (80%) and prescription drug labels (63%).

* In a departure from previous studies, a solid majority of respondents realizes that food alone may not be enough to satisfy nutritional goals. Nearly two-thirds of the respondents (63%) agree with the statement, "The amount of minerals and vitamins I obtain from the food I eat is not enough for my dietary needs." Past studies showed that survey respondents did not have insight into the fact that they likely are not obtaining the appropriate amount of nutrients from their diets.

* Most older adults perceive dietary supplements as a very important investment. Six out of ten older adults (62%) agree -- with 38% agreeing strongly -- with the statement, "I consider the money I spend on dietary supplements an essential investment in my health."

* Labels on supplements' bottles or packages are read carefully by most of those surveyed. A majority reports that labels help them choose the right supplement and to determine the correct dosage. In response to the statement, "I always carefully read labels when choosing my dietary supplements," seven out of ten adults (70%) agree, with more than half (56%) agreeing "strongly."

* Women aged 50 or over assign more value to dietary supplements than men (73% of women consider them essential). Women respondents also were more likely to report taking a dietary supplement than men (76% vs. 63% respectively).

* Supplements taken by seniors include multivitamins (60%), mineral supplements (30%) and herbal remedies (20%).

"Older Americans face serious health issues, such as malnutrition, because they take numerous medications and, often, do not follow a healthy diet. Many seniors live alone and may not cook frequently. They have much to gain by smart supplementation to their diets," said David Seckman. "Taking supplements plays an important role in meeting the daily recommended vitamin and mineral intake, and health authorities recommend that at minimum, older Americans should take a multi-vitamin on a daily basis."

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So, until next time, here's goodbye. Remember, if you want us to add any resources or items of interest, just drop us an email from the SeniorSSuperStoreS Contact Us page. Watch your email box for future newsletters!

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