Canadians apparently love reverse mortgages!

They always seem so relaxed, eh? Whatever the situation, whatever they need, no worries. It’ll be great.

This seems a stark contrast to their American counterparts who seem to worry about everything. We worry we don’t have enough. We worry we have too much. We worry about our kids. We worry about everything. We’re worry-worts.

Our Canadian neighbors; not so much. Canadians apprently love reverse mortgages!

In a recent post from HomeEquity Bank I read that 86% of Canadians over 55 are not willing to give up doing, achieving or acquiring something in order to provide their kids with a larger inheritance. They’d rather enjoy retirement, and they are not worried about whether they leave much of an inheritance, or even any inheritance behind for their adult kids.

According to one of Canada’s largest independent market research companies Canadians over 55 are willing to tap into the equity of their homes in order to help finance their lifestyle. In fact, older Canadians (65+) aren’t very concerned about whether they’ve insured there’s an inheritance left after they’ve maintained their own needs and wants.

That’s a very telling thing, especially when stacked up against what seems to be the American ideal as viewed through the eyes of American parents.
American Boomers I’ve spoken with frequently worry needlessly about being able to provide their adult children with substantial inheritances, nearly always at their own expense. This is amazing to me. If they just had the answers to a few simple questions they might be able to avoid a lot of stress.

This demographic has lived through a lot of adversity. They are used to doing without. They’re used to hunkering down and getting to work. The youngest of our Boomers are used to providing for themselves, but now they are also providing for their children, too. More and more adult children are moving back home.

I always tell my borrowers, “I’m not in favor of supporting adult children at the expense of your own financial well-being”. According to this article from Quora I’m not the only one who feels this way. If you read even just the first response you can see why finances and age can be very difficult to manage even for those who are wealthy. It’s particularly appropriate because the writer discusses how one particular couple’s finances dwindled just since 2008. I wish I had known them before they started their downward trend. I might have been able to help—a lot.

My favorite part of the article is as follows: “The first response to anyone who complains about parents or any person, spending an inheritance should be one of gratitude that person still has the resources to live life and enjoy it. There are a lot of seniors who are literally out of money and now need to rely entirely on their children, government programs, or other charities. Some of these are people who started off very affluent. First thing, be thankful that the parents still have money to take care of themselves.”
Yes, I agree with that. It’s what showed me why reverse mortgages can be so valuable to so many people.

Many people, including you, have probably hoped your parents would have a stress-free retirement. Many of you reading this will recognize that a lot of your own stress comes from knowing your folks are having a tough time when this should be the most relaxed period of their lives. And many of you may feel a little helpless not knowing what to do.

You still may be able to help, though. Sometimes just finding someone for your parents to talk to can be a huge help; especially when it comes to reverse mortgages. I learned about them when my own mother thought she should get more information. I knew I could help her with that. I learned so much about them that I helped her and a lot of other people, too. I’m still helping them figure out what they need and whether or not a reverse mortgage will help provide it to them. Often it does. It’s a great feeling, opening a door for someone you love.

Would you like to know if that door is open for your parents? If you’re in California why not give me a call and let’s start a dialogue going. You may be very surprised to see what your parents might be able to do.

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