A study released by the Boston Center for Retirement Research shows that security of retirement will be affected by the foreclosure market between now and the end of 2012. Housing wealth gained by soon-to-be retirees from 1992 - 2004 was largely lost in 2010 resulting in stretched retirement savings. While foreclosure rates are overall much lower in older households, an increase in arrears and foreclosure rates is predicted over the next 2 years. Potential reasons for this increase include a trend toward rising mortgage values, home equity lines of credit, and high loan-to-value ratios in addition to an overall decline in financial wealth. Declines in house prices will likely effect retirees that desire to downsize their primary residence in exchange for a potentially better financial position. All of these factors combine to create increased pressure on retirement resources.
Have you saved enough for your retirement? Maybe it's time to take a look at your financial future. If you are not satisfied with the growth you are achieving with your current investments, make yourself aware of the full spectrum of retirement investment options available to those with Self-Directed IRAs by visiting NewDirectionIRA.com.
You can read the entire study online by using this link -> http://crr.bc.edu/images/stories/Working_Papers/wp_2010-17.pdf
Guest Authors Bill Humphrey and Catherine Wynne are Principals with Entrust New Direction IRA. Reach them online at www.newdirectionira.com.
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