Boomer Inheritance Bonanza?

A recent report from the Federal Reserve Bank of Cleveland suggests that Boomers who are expecting an "inheritance bonanza" may be disappointed. The report says boomers’ inheritances are unlikely to add significantly to their retirement funds for the following reasons:

--Although bequests are larger today in absolute terms than they were in the past, they haven’t grown substantially relative to boomers’ standards of living.

-- While boomers' parents have more wealth than previous generations of retirees had, much more of that wealth is annuitized, resulting in a smaller share that will be inherited.

-- Boomers, on average, have more siblings than their parents did, which means inheritances are likely to be divided among more people.

-- Boomers' parents probably will live longer and spend more of their wealth than previous retirees did, and there is some evidence that many parents of boomers neither expect to leave significant bequests to their children nor believe it is important to do so.

-- Boomers' inheritances are likely to be distributed unequally among them, reflecting the considerable wealth inequality among today's retirees.

The authors of the report advise Boomers to fund their retirement the old-fashioned way—by saving.

Loan Limits Increased For Reverse Mortgages

Seniors can now obtain larger reverse mortgages. Higher loan limits became effective January 1, 2001, for the Fannie Mae Home Keeper loan and federally insured single-family home mortgages, including the Home Equity Conversion Mortgage (HECM). The limit for the Home Keeper reverse mortgage is now $275,000 in most parts of the country. Loan limits for the HECM range from $132,000 to $239,250.

Increases in the loan limits mean senior homeowners will be able to tap more of the equity in their homes to enhance their retirement, according to Peter H. Bell, president of the National Reverse Mortgage Lenders Association.

FHA Mortgage Insurance Refunds

The federal government may owe you money if you had a home mortgage insured by the Federal Housing Administration, an agency within the U.S. Department of Housing and Urban Development (HUD), and certain other requirements are met. To find out whether you qualify for a refund, search the HUD’s online database at http://www.hud.gov/offices/hsg/comp/refunds/index.cfm comp/refunds/page1.html.

You do not need to pay anyone a fee to collect your refund. If you’ve been misled or harmed by anyone who has asked for a fee in exchange for helping you collect a refund or if you need more general information about the refunds, call HUD at (800) 697-6967.

What To Do With the Family Home

Twenty percent of people aged 50 or older who responded to AARP’s survey said an inheritance or the lack of one has created tension or hard feelings between family members, and three-quarters of those people said the disagreements involved the family home or other real estate.

Keeping your home in good condition is an important aspect of protecting your investment in what may well be your most valuable asset. Add these chores to your "to do" list:

-- Remove any branches, leaves or other debris that’s clogging your home’s gutters or rain spouts.

-- Have any broken or missing roofing shingles or tiles repaired before the damage becomes worse.

-- Remedial action is in order if your home’s trees require trimming, the plants aren’t thriving or insects are devouring your flowers, hanging fruit or vegetables.

-- Keep up your home’s appearance by making any needed repairs to the brickwork or siding.

-- Fix any cracks in your driveway, walkways and sidewalks before someone (maybe you) trips and falls.

-- If your home is becoming drafty, it’s time to recaulk the doors and windows.