What’s your financial strategy?

Today, I dragged myself to the post office to mail our federal and state tax returns and a check to the IRS.  I sent them via certified mail to prove I sent them. No, one cannot trust the US Postal Service these days, what with mail being stolen or stuck between magazine covers.

I was a little peeved with David, because we were penalized for under-withholding.  He’s an accountant, after all.  Come on, now, get with it!  He told me he will withhold more this year, so we will receive smaller paychecks.  Grrr.  Better that than being penalized again next year!  (This was a $14 fine in addition to the amount we owed.)

Met Life reverse mortgage consultant, Percy Ihara, called me this morning.  I thanked him for the information packet and DVD he sent me last week.  We discussed my intention to apply for a reverse mortgage when David turns 62 next year.  When I told him I had decided to go with a fixed interest rate for a lump sum loan, he told me that it would be unwise, as we would end up paying more in the long run.  He advised that we get a line of credit, because even if the adjustable rate does go up, we would be paying for just the amount we withdrew.

There are so many things to consider, among them long term care insurance.  I told him that David and I want to be cared for in our own home.  Percy said that would cost less than a nursing home, and the major insurance companies like John Hancock now insure people for long term own-home care.  Previously, they did not.  But with the shortage of nursing beds, own-home care is becoming more popular.

He also told me that Bank of Hawaii had left the reverse mortgage business at the end of last year, and that Met Life is the company to do business with.  He invited me to attend one of his seminars.  At any rate, we will be in touch next January to process our application for a reverse mortgage.

Have you considered a reverse mortgage or long term care insurance?  What is your financial strategy?

14 Responses to “What’s your financial strategy?”

  1. cloudia Says:

    Live below our means, enjoy life, die broke…..

    Aloha from Waikiki my Friend!

    Comfort Spiral

  2. quilly Says:

    Long term care? I am still trying to get by day-to-day!

  3. musings Says:

    Nope, no long term health care insurance. I hope we don’t regret it.

    • gigihawaii Says:

      Well, I guess if your money runs out, you could apply for Medicaid. That’s what my inlaws did, when they entered a nursing home. They relied on Medicaid and Social Security. They did not own a home that they could sell.

  4. Hattie Says:

    It’s hard to know what to do, because you can’t predict what your future needs will be.

  5. LizKauai (iPhone) Says:

    Actually, having to pay a little is better than having paid it forward and having to wail til July for a state refund! Grrrr.

    I would never do a reverse mortgage.

    What is it that Carnegie said! A person who dies rich should be ashamed.

    Put the material resources to work for the benefit of humanity. This is our only chance to demonstrate our desire to do good.

    Money and time well-spent!

    • gigihawaii Says:

      I meant that we had to pay a $14 fine in addition to what we owed the IRS. That’s what annoyed me.

      Yes, I agree with you. But besides donating to charity every year, we also want to save ourselves from being homeless and sick.

  6. Nessa Says:

    My financial strategy is to win the lottery. in other words, I have no financial strategy.

    Flash 55 – Help?

  7. Hattie Says:

    It’s been harder for Boomers to accumulate wealth than it was for their parents. And they are a youth oriented bunch in general who don’t want to think about providing for their old age. Now the crunch has come.

  8. Kay Dennison Says:

    Financial strategy? Financial strategy????? I’ve never had enough money to have that.

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