Road to Financial Success 2022

the 2022 road to

ARTICLES

FINANCIAL SUCCESS

2 3 4 5

Building Wealth In Real Estate.

Reverse Mortgage Loan Facts.

Two Services -One Plan.

Pitfalls to avoid falling into debt.

6 8 10 12 12

5 Ways To Save Money In 2022.

Why Bank At A Credit Union.

Why Partnering With A Local Lender Makes A Difference.

How to determine if it’s time to downsize.

Cut costs during retirement.

2 • 2022 FINANCIAL PLANNING

Reverse Mortgage LOAN FACTS

By Amber Docken Loan Officer at Fairway Independent Mortgage Corporation in Bozeman MT.

I

t is our job to give you the best education available with the most up-to-date facts so you can make a bright and educated decision. Our Reverse Mortgage Planners are well trained and very experienced with a variety of senior, real estate, and retirement issues so you can feel much more secure about making a decision with one of your most valuable assets: your home.

Some of the most common myths that we hear are below.

Most, but not all, reverse mortgages today are federally insured through the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) Program. This blog talks about HECM loans only.

MYTH: I could lose my house and be forced to move.

FACT: As long as all loan terms are met, you cannot be forced to sell the home and move. Terms include living in the house as your primary residence, maintaining the home, and paying home expenses such as taxes and insurance. Some circumstances will cause the loan to mature and the balance to become due and payable.

Credit is subject to age, property and some limited debt qualifications.

Program rates, fees, terms, and conditions are not available in all states and are subject to change.

MYTH: Your house must be debtfree to qualify for a reverse mortgage.

FACT: The amount of money you qualify for a reserve mortgage varies bases on the down payment you will need to bring to closing (ranges from 30 - 74%), which will be determined

based on your age, or age of nonborrowing spouse, if applicable, current interest rates and the sales price (or appraised value, which is less) of the home you are buying.

You must live in the house as your primary residence (living there 6+ months per year). Some income, property, and credit qualifications apply to ensure you can pay taxes and insurance and maintain the home.

MYTH: I will be giving you the deed to my own home, and I will not own it anymore.

FACT: The deed is still in your name so you can move whenever you want. Most reverse mortgages are federally insured through the FHA. As long as you pay your property taxes, homeowners’ insurance and maintain your home you cannot be foreclosed on. We must honor this commitment for life or as long as you live in your home. However, you are allowed to change your mind and sell the house whenever you want if you wish to move to warmer climates, a right size home, or closer to your children whatever your choice may be. Only you will make the decision, not the lender or the government.

MYTH: A reverse mortgage loan should only be considered as a loan of last resort.

FACT: Many folks think a reverse mortgage can only be used when all other accounts and options are exhausted. While it is a great loan to add cash flow for a borrower 62 and better that has fallen on hard times (including, potentially foreclosure situations*), it should also be used earlier in retirement to avoid future problems by keeping the home safe with the retiree “aging in place.”

WHAT IS A REVERSE MORTGAGE LOAN? If you’re 62 and better, you can use a reverse mortgage loan to purchase a new home or turn your current home’s equity into cash. A reverse mortgage loan gives retirees the opportunity to potentially increase their purchase power or cash flow while eliminating monthly mortgage payments as long as you pay taxes and insurance, and maintain the home. Here are just a few reasons why you should consider a reverse mortgage.

WHAT A REVERSE MORTGAGE IS A Loan That Converts Equity to Cash for Many Different Uses

WHAT A REVERSE MORTGAGE IS NOT Not: A Sale Or Lifetime Commitment

Call Amber Today to Learn More Amber Docken Loan Officer NMLS #1236912 Office: 406-948-4459 amberd@fairwaymc.com 1811 W. Koch St. Bozeman, MT 59715

Copyright©2021 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. The youngest borrower must be at least 62 years old. Monthly reverse mortgage advances may affect eligibility for some other programs. This is not an offer to enter into an agreement. Not all customers will qualify.

Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.

FINANCIAL PLANNING 2022 • 3

Building Wealth in Real Estate

By Shannon Foley Loan Officer and Co-Manager at Cornerstone Home Lending

I

t’s no secret that today’s real estate market is competitive.

But there’s a reason millions of homebuyers choose to stay in the game: the opportunity to build significant wealth to last a lifetime.

For the past eight years in a row, real estate has been named

by Americans as the number one long-term investment. This is likely because the simple act of owning a house allows you to rapidly build home equity. These rapid equity gains build up your net worth -- to as much as 40-times that of a renter’s -- providing a great return on your initial investment.

With this in mind: Even if you can’t afford your forever home right now, it’s still a financially sound decision to enter the market, purchase a house in your price range, and trade up to a larger or better-located home as your equity grows over time. Working with the right local lender and real estate partner can make this “grow up” possible.

But don’t forget: Today’s housing market remains highly competitive. If you want the greatest odds of nabbing the house you have your eye on, please don’t skip one of the most important -- and often overlooked -- first steps of the homebuying process: prequalification.

When you prequalify for a mort-

gage, you find out how much house you can afford to buy. Prequalifying early saves you from househunting in the wrong price range.

It also gives you a much-needed advantage when putting in an offer by showing sellers that you’re serious and prepared to buy. If you’re ready to explore the market, the Shannon Foley and Graver Johnson team would love to help you prequalify.

Visit www.TeamSGHomeLending.com to prequalify today.

For educational purposes only.

Please contact a qualified professional for specific guidance. Sources deemed reliable but not guaranteed. Sources: Gallup, Federal Reserve 2021.

CO MPRE HE NSI VE

MORTGAGE STRATEGIES F O R VIRTUA LLY EVERY H OMEBU YER

First-Time Buyers | New Home Purchase | Move-Up Homeowners Relocators | Refinancing | Real Estate Investment

EXPERIENCE THE CORNERSTONE DIFFERENCE Contact our team today!

GRAVER JOHNSON NMLS 396462 Direct: 406.579.4252

SHANNON FOLEY NMLS 265969 Direct: 406.581.2958

TeamSG@HouseLoan.com www.TeamSGHomeLending.com

347 S. Ferguson Avenue, Suite 4 | Bozeman, Montana 59718 | Company NMLS 2258 Not a commitment to lend. Borrower must meet qualification criteria. Equal Housing Opportunity.

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4 • 2022 FINANCIAL PLANNING

Two Services – One Plan

By Danielle M. Shyne

Attorney/Owner Shyne Law Group, PLLC.

E

state planning and financial planning help to protect your assets and plan for the future.

Each process has a different purpose.

Estate planning attorneys and financial planners have distinct roles and expertise — however the best design is when your estate plan and financial plan work together to achieve your important long-term goals.

A financial planner evaluates and collaborates with you to establish longterm financial goals, based on your needs and desires. A financial plan includes a strategy for managing and growing your wealth, as well as an analysis of your risk tolerance based on your circumstances.

Estate planning focuses on putting the proper legal documents in place to ensure implementation of your goals and wishes for the future, both for yourself and for your family. The documents address concerns that are different from your financial goals.

When you create a thorough, careful estate plan, you accomplish these important goals:

• Minimize taxes and maintain personal and financial privacy of your estate after death • Ensure that your assets and legacy benefit individuals of your choosing upon your death • Determine whether your beneficiaries receive all your assets outright or whether a person you select

See PLAN | 5

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EStAtE & Long tErM cArE pLAnning Personalized service and one-on-one attention.

Estate planning | Wills | trusts | probate incapacity planning | Medicaid planning 34832-1

Serving the people and businesses of Southwest Montana Danielle M. Shyne Attorney at Law

Shyne Law Group, PLLC • (406) 581-5479 ShyneLawgroup.com

FINANCIAL PLANNING 2022 • 5

Pitfalls to avoid falling into debt Metro Creative Services

H

igh consumer debt can compromise individuals’ financial futures and have an adverse effect on their overall health.

Debt has long been an issue that threatens individuals’ well-being, but the good news is that certain debts seem to be on the decline.

According to the “Quarterly Report on Household Debt and Credit” that was released in May 2021 by the Federal Reserve Bank of New York, credit card balances were $157 billion lower by the end of the first quarter of 2021 than they had been at the end of 2019. Authors of the report credit that decline to paydowns by buyers and reduced consumption opportunities related to the pandemic.

to customers who sign up for a store credit card and use the card to make a purchase. As enticing as such savings can be, consumers should recognize that a recent study by CreditCards.com found that the average retail credit card APR is 25.9 percent. That’s more than 6 percent higher than a general purpose credit card.

Consumers who cannot pay balances in full each month could end up paying much more in interest if they use retail credit cards instead of general purpose cards.

Individuals who want to avoid debt can keep an eye open for these pitfalls.

· Too many accounts: A 2019 study from the credit reporting agency Experian found that the average American has four credit cards. Though many consumers can effectively manage that many cards, the more cards an individual has, the easier it can be to lose track of spending.

More cards also means a greater potential for more debt, as each card has its own limit that is unrelated to the limits on other cards.

· Retail credit cards: Many retailers offer their own credit cards. Consumers may be enticed to sign up for such cards by the opportunity for instant, and often significant, savings. For example, a home improvement store may offer an immediate 25 percent discount

· Bonus hunting: Another pitfall to avoid is the temptation to use credit cards instead of cash in an effort to accumulate more travel miles or cash back bonuses.

Consumers should aspire to use cash over credit whenever possible. Doing so ensures consumers are not spending

Plan

financial management, in the event you become unable to do so yourself

From page 4 manages and distributes those assets to your beneficiaries according to your directions • Designate the people who will care for your children and manage their finances in the event you are not able to fulfill those responsibilities • Designate individuals to provide personal care, decision making, and

Communicate your final wishes If you do not have an estate plan, state law determines who gets your property and makes your decisions if you become incapacitated. Your loved ones may need to ask a court to decide who makes the decisions and who receives your assets. Those people may not be the individuals you would choose.

Estate planning is a process that requires assistance from a licensed attorney. Your lawyer first talks in-

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Individuals who want to avoid debt can keep an eye open for these pitfalls.

money they don’t have, which is one of the most common ways that individuals build significant consumer debt. · Failure to budget: A budget is the most effective way for individuals to gain control of their spending. That lesson seems to resonate more with young people than older men and women. A 2019 poll from Debt.com found that 74 percent of consumers between the ages of 23 and 38 use a budget to govern

depth with you about your concerns, goals, and wishes for your future and for your loved ones. Then, your attorney explains how specific legal documents address all those matters. If you decide to establish an estate plan, your lawyer creates documents tailored to your unique circumstances. The only way to make certain your estate plan is properly established — and does what you want it to do, both during your life and after — is to talk with an experienced estate planning attorney.

Although estate planning and financial planning are separate and

their spending, while only 67 percent of consumers between the ages of 39 and 54 use a budget. A failure to budget can increase the risk of spending impulsively and make it hard for consumers to see what’s coming in and what’s going out.

That’s a recipe for accumulating debt.

Avoiding certain pitfalls can help consumers avoid accumulating debt that can adversely affect their financial futures.

distinct, both processes involve your financial assets. The two processes work together to accomplish your goals. For that reason, a great estate planning lawyer will work directly with your financial planner, and vice versa.

While not everyone needs or wants a financial plan, everyone should have an estate plan to avoid allowing state law to make their decisions. So logically, starting with your estate plan makes sense. But the truth is that it does not matter whether you start with estate planning or financial planning, it is just a matter of getting started.

6 • 2022 FINANCIAL PLANNING

5 Ways to Save Money in 2022

By Margo Haft Bozeman Daily Chronicle

D

id you know? 29.2% of American’s don’t save any of their income. When thinking about saving money, the idea that comes to mind for most is cooking a penny pincher meal from home instead of your favorite pizza joint.

Yet, the fear of missing out can be more overpowering than the thought of future financial stability. The good news is, saving money doesn’t have to look like something out of a horror movie. Saving comes in all shapes and sizes, and if it’s unfamiliar territory a great place to start is small. Did you know? If you save $2.75 a day, or less

than $20 a week, you would have a savings of more than $1,000 after one year. That’s the average cost of a cup of joe at Starbucks. Still thirsty?

Here are 5 tips to start off 2022 with more money in your pocket and less Starbucks on your mind.

Create a budget

costs aren’t always as foreseeable.

When intending to shop, make a plan beforehand. Eliminate unexpected costs by making a list or checking prices online prior. With a budget and a plan, decision making becomes easier when asking yourself “can I afford this.”

Creating a budget is a benchmark for healthy spending habits. But, starting from scratch is an inconvenience.

Downloading apps such as Mint or Goodbudget make it easy to stick to your long or short-term goals without the headache. Even with an app, it’s not always easy to say ‘no’ to things you want. When it comes to wants and needs, establish a budget for both. Budgets are predictable, but

Where exactly is your money being spent? An easy way to track spending habits is checking your bank and credit card statements regularly. Many credit cards will track and provide helpful visuals of where you spend money, whether it’s towards groceries, gas, entertainment, or restaurants.

Does your credit card or local grocery store offer rewards or discounts for

Evaluate spending habits

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Whether you’re just starting to save or want to stay on track, here are a few creative ways to successfully save money and feel good doing so.

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spending money? An article by CNBC states that food costs are up by 6.4% over the last year. Gasoline prices jumped a staggering 58%. Check with your local grocery stores and gas stations to see what rewards they offer. Apps such as GasBuddy will help you find the lowest gas prices in your local area.

Manage unexpected income Sold that kitchen appliance that was never used? Received some birthday

$10 is only for online account openings, a free gift will be given for in branch openings. $10 will be deposited into new account within 1-2 business days of completion. Bank rules and regulations apply.

FINANCIAL PLANNING 2022 • 7 money or a work bonus? Setting aside unexpected income is another great way to build your savings. Clear out clutter twice a year and sell it on sites like Facebook Marketplace, ThredUp, and Poshmark. These sites make it easy to list items and get cash quick.

Turn that hobby or skill into extra monthly income. Do you know how to clean and fix things? Pick up side jobs on the Handy for Pros app. Are arts and crafts your life? Sell products online or at a local farmer’s market.

Wherever it comes from, this extra cash can stack up quickly.

Do it yourself “Doing it yourself” is one empowering way to save. Not only do you get the satisfaction of completing a project or task, you also put money back in your pocket. Some ideas of DIY include repurposing an old dresser, growing herbs, changing

your own oil, hand-made gifts and cards, baking and cooking for entertainment, and remodeling your home. Garage sales are a great market for purchasing your next piece of DIY furniture or home good needs. Needs tools for your next project? Ask a neighbor or a friend to borrow what you need.

Hold yourself accountable Saving money only requires the level of commitment you’re willing to give.

The good news is you are not alone.

Saving can be a daunting task. Talk with a close friend about challenges, struggles, and successes. Get in touch with a professional who can help you reach your money saving potential.

Small rewards can also maintain motivation until you get the hang of it.

Are you already considering what you can do to save even a little more money this year? You’re off to a great start!

Strategies for your Wealth Management needs.

We help you create a personalized financial strategy based on your lifestyle goals. Using our discovery process, we work with you to build an appropriate plan that supports your objectives, then monitor to help you stay on track.

Cathy Lucas

JC Murray, CTFA

FINANCIAL CONSULTANT

PROGRAM MANAGER

406-556-4883

406-556-4885

OUR SERVICES AND STRATEGIES INCLUDE:          

Retirement planning Business strategies Investment planning Small business strategies Estate planning Insurance Education planning Risk management Tax strategies Gifting strategies

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Interstate Bank and First Interstate Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using First Interstate Investment Services, and may also be employees of First Interstate Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, First Interstate Bank or First Interstate Investment Services. Securities and insurance offered through LPL or its affiliates are: Not Bank Guaranteed

Not Bank Deposits or Obligations

Not Insured by FDIC or Any Other Government Agency

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8 • 2022 FINANCIAL PLANNING

Why Bank With a Credit Union?

By Kelly Fleiner

Director of Marketing & Public Relations, Rocky Mountain Credit Union

W

hen it comes to choosing a place to keep your money, you’ll need to consider which kind of financial institution to work with: a traditional bank or a credit union. What’s the difference?

Here’s a quick breakdown – you just might find that a credit union is a better fit for your finances and your values.

Credit Unions Are Cooperatives, Not Corporations Unlike banks, which are for-profit entities, credit unions are not for profit, and their shareholders are

their members. The overall goal of a credit union is to pass on the profits it earns back to its members through better interest rates, lower costs, and other member benefits.

Credit Unions Are Invested in Their Communities Credit unions are a part of the communities they serve, so they go above and beyond just providing banking services for their communities. Credit unions offer education programs for members, scholarships for local students, and they donate to organizations that their members care most about.

Ultimately, they use their profits to better the broader community.

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FINANCIAL PLANNING 2022 • 9 Lower Interest Rates on Loans and Credit Cards The hype around credit unions isn’t just about supporting local – it has serious financial benefits, too. Credit unions typically offer significantly lower interest rates on credit cards and loans, helping you save on those larger investments you’ll need to pay off over time. On average, credit card interest rates at credit unions are 3-4% lower than banks, and 2% lower on auto loans.

Additionally, credit unions typically don’t charge penalty interest for missed or delayed payments.

Higher Interest Rates on Savings Accounts At a credit union, checking and savings accounts, CDs and money market accounts pay their customers a higher interest rate than a traditional bank. Many credit unions offer nearly 40% more on their checking interest rates than the national bank average.

Credit Unions Are Known For Their Incredible Member Service Because credit unions are invested in the communities they serve, they also invest in keeping their membership strong. Many credit union members love that when they call with an issue, they get a real person on the line – maybe even a person they know. They can forego the frustrations of dealing with automated voice machines and chatbots and get meaningful help right away.

Employees grow and maintain personal relationships with members, so they know they’re more than just another account.

Banking is one area where you can choose local without sacrificing your financial must-haves. You can have it all – the best rates and completely mobile banking – while investing in your local community. So when you’re considering where to put your hard-earned dollars, give your local credit union a shot.

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When it comes to your toughest questions, we’re an open book.

Because transparency matters.

At Schwab, we take time to give you straightforward answers to your toughest questions. What are our fees? We’ll tell you. How about fully explaining our services? You got it. If you live in Bozeman, go ahead. Ask Erin anything.

She’ll always give you a transparent answer.

It’s Tax Season!

If you’re looking for a firm that will focus on your individual needs, and always treat you like a client who matters, look no further.

Gallatin Valley Tax Service | Phone: 406-587-2525 Gallatinvalleytaxservices.com 1105 Reeves Rd West Suite 900, Bozeman, MT 59718

Erin Yost, CFP®

Get started at schwab.com/bozeman

Branch Leader 610 Boardwalk, Suite 104 Bozeman, MT 59718 406-219-0836 © 2022 Charles Schwab & Co., Inc. (“Schwab”) Member SIPC. All rights reserved. (1120-0JP6) SCH4953-5 (1/22)

10 • 2022 FINANCIAL PLANNING

Why Partnering with a Local Lender Makes a Difference

By Nell Bormann

C

ontinuously recognized as one of the fastest-growing cities in the US, people are flocking to Bozeman, Montana, and for good reason.

The importance of quality of life is woven into every part of our culture. Called one of “the most livable places”, residents can enjoy world-renowned fly fishing, incredible mountains for hiking, skiing, hunting, backcountry exploring, and mountain biking, and still get home in time for a warm dinner.

Bozeman is our home, and we love living here. Our personal connection to the community adds to the long list of reasons why partnering with us, local loan originators, is a smart choice with many benefits over larger, less personalized companies. We’re not looking for clients, we’re looking for neighbors.

At GoPrime we share a common and transparent goal and know that the key to our prosperity is your satisfaction with our service. We are dedicated to serving our community by making affordable homeownership possible through personal service and individualized loan solutions. We strive to provide a road to homeownership that improves stability in the community.

Everything that we do is aimed to assist you during the mortgage process and make it as seamless as possible.

We are supported by incredible behind-the-scenes teams in-house for disclosures, processing, underwriting, and closing. We operate with top-of-the-line technologies, such as consumer engagement software to keep you involved and informed throughout the entire home-

buying journey. We boast an engaged executive team and pride ourselves on our honest leadership. We are an awardwinning, veteran-owned and operated mortgage company that is dedicated to providing you with local connections, acting with integrity, and implementing innovative solutions that allow us to close out loans efficiently.

Your GoPrime team in Bozeman includes Branch Manager Caroline Roy, who has been working in the mortgage industry for over 20 years. Caroline is dedicated to helping homeowners in diverse Montana communities and prides herself on being accessible around the clock. Jamie Rainey has been working in the mortgage field since 2011 and is a fifth generation Montanan. She boasts a competitive work ethic and will happily answer the how, why, and when of each part of the process. Yvonne Williams, who is new to the mortgage industry, recognizes everyone’s personal situation is different and works closely with her clients to ensure they find a good fit. Our branch offers a variety of purchase and refinance loan options including conventional, FHA, VA, USDA and jumbo, and are committed to working closely with you to find what works in your situation.

According to the American Moving and Storage Association, Montana takes fifth place among the states where the number of inbound moves is more than two times higher than the number of outbound moves. Nicknamed “Big Sky Country” thanks to the beautiful plains and breathtaking views of the endless sky, there are many more benefits of living in Bozeman. There

are hundreds of thousands of acres of public land within a short drive providing unyielding access to outdoor activities such as ice climbing, hiking, fishing, and snowshoeing. You will also find shops full of countless talented artists’, photographers, alpinists, actors, and writers’ work.

Our team doesn’t look at a mortgage as just financing a home, but rather settling you into your new community. We know the area and have a clear understanding of property values, the local economy, and the Montanan lifestyle.

We appreciate that procuring a mortgage is a very personal process and will walk with you every step on Your Road HomeSM; if you work with an online lender, the odds are low that you’d ever meet them face-to-face. We’d love to bring you to our favorite coffee shop to discuss your options, talk about school districts, walkability, neighborhoods, and taxes.

Sure, it may seem easier to throw in an online application with a huge internet company, but you’re missing the personal touch that comes with partnering with a local. You won’t form an individual relationship with your computer. We personally review your unique situation, finances, and goals to help find the program that fits your needs and aspirations. We schedule annual mortgage checkups and help monitor your interest rate. We care deeply about becoming your trusted home loan specialists and having a finger on the pulse of Bozeman helps us with our knowledge of the area where we serve.

Our team prides ourselves on our reputation for quick turnaround times and

great customer service. Thanks to our in-house underwriting and processing teams, we can work directly with them to be sure that you are cared for. Larger companies often struggle with delays in these areas and in a tight market just a few days can make a huge difference.

Even if homeownership is more of a long-term goal for you, we are happy to take the time to get a roadmap in place for you to help you as you prepare for your future. We are recognized as one of the most knowledgeable sources in the Montana mortgage field, both locally in Gallatin, Park, and Madison counties, and around the state.

Another benefit of partnering with a local lender is flexibility. We are accessible and available on your schedule and will promptly answer any questions you have along the way, whether you prefer email, texting, phone calls, or meeting in person. You will have a direct line of communication with us ensuring easy and open communication during the entire process. You won’t be given a “1-800 number” with us, you can call directly and we’ll be on the other end of the line.

We put importance on forming strong partnerships with local real estate agents who would love to help you find a home to call yours. These longlasting relationships extend beyond just the initial mortgage, we know the area and those who work in it and in turn nurture relationships that extend to you. This all builds a well-rounded homebuying experience for you and we hope to keep the process as stress-free and transparent as possible. We’d love to have you as our neighbor!

FINANCIAL PLANNING 2022 • 11

l a c o L y l d Prou

We love living here – it’s not just about finding you a home, but connecting you to a community.

Jamie Rainey Loan Officer NMLS ID 1192115 406.781.5617 jrainey@goprime.com

Caroline Roy Branch Manager/Loan Officer NMLS ID 271203

Yvonne Williams Loan Officer NMLS ID 2135680

406.581.2939 caroline@goprime.com

406.224.8254 ywilliams@goprime.com

Quick turnaround times, great customer service, and flexibilty.

Reach out to us today!

Bozeman Branch

2015 Charlotte Street, Suite 3 | Bozeman, MT 59718 www.GoPrimeMontana.com GoPrime Mortgage, Inc. is a mortgage lender. NMLS ID # 69551. (www.nmlsconsumeraccess.org).

320 N. Salem St., Suite 300, Apex, NC 27502. Not licensed in all states.

12 • 2022 FINANCIAL PLANNING

How to determine if it’s time to downsize Metro Creative Services

I

ndividuals work hard to save enough money to purchase their homes.

And the hard work doesn’t end there. Once homeowners settle into a new home, they may set their sights on renovations that suit their individual needs. And even when buyers find a home that needs no such work, maintenance requires homeowners’ utmost attention.

All that hard work is perhaps one reason why seniors may be a little reluctant to downsize as they advance through their golden years. In addition to the sweat equity homeowners put into their homes, all the memories they’ve made within their walls can make it harder to put a home on the market.

Downsizing is a difficult decision that’s unique to each homeowner. Seniors who aren’t quite certain if downsizing is right for them can consider three key factors to make a decision that’s in their best interests.

· Cost: Perhaps no variable affects senior homeowners’ decisions to downsize their homes as much as cost.

No one wants to outlive their money, and downsizing to a smaller home can help seniors reduce their monthly expenses by a significant margin. Even homeowners who have long since paid off their mortgages can save substantial amounts of money by downsizing to a smaller home or even an apartment or condominium. Lower property taxes, reduced insurance premiums and the need to pay for fewer repairs are just some of the ways downsizing can save seniors money. · Space: Many people love the extra space that single-family homes provide.

But seniors can take a walk through their homes and see how many rooms they still use on a consistent basis. If much of the home is unused, seniors can probably downsize without adversely affecting their daily lives. · Market: The real estate market is another factor to consider when deciding

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Seniors who aren’t quite certain if downsizing is right for them can consider three key factors to make a decision that’s in their best interests.

if the time is right to downsize. A seller’s market can help seniors get the biggest return on their real estate investment, potentially helping them make up for meager retirement savings. For example, home prices skyrocketed across the country during the COVID-19 pandemic, making that a great time for sellers to put their homes on the market. Seniors selling to downsize may capitalize on such spikes since they won’t be looking to turn around

and buy larger, equally expensive homes once they sell their current place. If the market is down and seniors can withstand the work and cost a little longer, it may be best to wait until things bounce back in sellers’ favor.

Downsizing requires careful consideration of a host of variables.

No two situations are the same, so seniors should exercise due diligence to determine if downsizing is right for them.

Cut costs during retirement Metro Creative Services

T

he average person will spend more than 50 years in the employment sector. As retirement draws closer, many professionals begin to daydream about giving up the commute and having more time to pursue their personal interests.

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Even if planning for retirement has been many years in the making, it can take some time for a person to become acclimated to having less income. According to data

from the Bureau of Labor Statistics, “older households,” which are defined as those run by someone age 65 and older, spent an average of $45,756 in 2016, or roughly $3,800 a month. That’s roughly $1,000 less than the monthly average spent by typical American households. Housing, transportation, health care, and food are some of the biggest bills retirees will have to account for. Aiming to have savings in addition to any other retirement income or government subsidy coming in to cover that amount is a step in the right direction.

Retirees can make their money go further if they take inventory of their spending and make some cuts where possible. · Know where your money is going.

It’s impossible to save without knowing what your expenses are each month.

Many people are surprised to learn how much little things add up over the course of a month. For example, spending $4 for a take-out coffee each day can quickly become an expensive luxury. Add all expenses and see where you can trim, especially if there’s a deficit each month.