Many of Viking's retired clients fit in to one of these two scenarios:

1. House rich and cash poor
   
   -or-
   
   
2. Paying higher federal and state income taxes in retirement when they believed they would be in a lower tax bracket at this stage of their life.

Why did this happen? We have found that most retirees have worked, saved, and toiled their entire adult lives under the wrong financial assumptions.

The Assumptions:

1. Have a debt free home by retirement: less expense and when we leave this world the children can inherit the homestead and raise a family.
2. Pension plans should provide enough to pay for basic expenses; womb to tomb mentality
3. Save in liquid short-term investments so we won't lose the principal: CDs, Money Markets, etc.
4. Have most long-term assets in a qualified retirement plan; because I will be in a lower tax bracket when I retire.
5. I won't need the same income I was earning during my working years in my retirement years

The Facts:

1. Your life expectancy is age 90 to 100
2. You have lost all your deductions: Children, Mortgage Interest, Contributions to a qualified retirement plan
3. Your children really don't want your house
4. Didn't plan for the high cost of medical expenses and living so long
5. You need more income now than before - "we wanted to travel and at the same time make a real contribution to the community through charitable giving."

Memory lane:

Your parents lived through the great depression and instilled in you the concepts of prudent financial management. Maybe your family lost their home during the depression period, but we know the world has changed and so must your conception of financial planning.

You have worked during the greatest economic changes our nation has experienced: The 19 - 50's, 60's, 70's, 80's and some of you in the 90's. What has been your experience? Change! You have experienced income tax rates as high as 90% with a lot of deductions; you have also experienced lowered tax rates with fewer deductions - you have been through a lot. But there is one constant that you can depend on: what the government giveth it also taketh away. And now you have no tax deductions left.

Strategies:

1. Prudent home equity management can give you cash flow and be a positive factor in your life now
2. There are better places to put your savings to preserve liquidity, safety and give you a stream of tax free income regardless of your age
3. It is never too late to change

Viking Mortgage will help you find the mortgage that's right for you.

Schedule an appointment to meet with us and learn about how you can change now.