Secure Retirement
[Cover A] [Date to left of Masthead] Fall 2015 [Masthead] SPECIAL ISSUE ON REVERSE MORTGAGES
Secure Retirement Helping homeowners age 62 and over enjoy financial security and the best of life [Photo of NAME] [Caption] One woman’s story: Name, AAG client, xx city, state
[Cover bullets/icons] FINANCIAL SECURITY How homeowners are enjoying monthly tax-free* income for life without additional expenses (page 3) SPECIAL FOCUS: A mortgage that pays YOU (page 5) HOW RISING PRICES HURT YOUR STANDARD OF LIVING (page 7) THE SECRET TO A WORRY-FREE RETIREMENT Do what you’ve always dreamed of doing (page 6) PROTECT YOUR HOME FROM ROBBERY (page 7) SIX SURPRISING RETIREMENT STRATEGIES (page XX) HOW TO USE YOUR HOME AS A RETIREMENT TOOL (page XX) 3 MYTHS ABOUT REVERSE MORTGAGES EXPLAINED (page XX) [Diagonal banner in bottom right corner] Complimentary Copy
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 2 of 37 [Cover B] [Date to left of Masthead] Fall 2015 [Masthead] SPECIAL ISSUE ON REVERSE MORTGAGES
Secure Retirement Helping homeowners age 62 and over enjoy financial security and the best of life [Photo of Fred Thompson] [Caption] Former Presidential candidate and U.S. Senator Fred Thompson is passionate about sharing the many surprising benefits of Reverse Mortgages with his fellow retirees.
[Cover bullets] FINANCIAL SECURITY How homeowners are enjoying monthly tax-free* income for life without additional expenses (page 3) SPECIAL FOCUS: A mortgage that pays YOU (page 5) HOW RISING PRICES HURT YOUR STANDARD OF LIVING (page 7) THE SECRET TO A WORRY-FREE RETIREMENT Do what you’ve always dreamed of doing (page 6) PROTECT YOUR HOME FROM ROBBERY (page 7) SIX SURPRISING RETIREMENT STRATEGIES (page XX) HOW TO USE YOUR HOME AS A RETIREMENT TOOL (page XX) 3 MYTHS ABOUT REVERSE MORTGAGES EXPLAINED (page XX) [Diagonal banner in bottom right corner] Complimentary Copy
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SPECIAL FOCUS ON REVERSE MORTGAGES: The exciting way senior homeowners are increasing their monthly “income” - generating cash without creating new expenses… ____________________________________________________________ [Headline over pic of xx]
ONE XX’S STORY: xx Name of City, State xx [Copy next to pic] Insert testimonial [Centered underneath]
Interesting? Please read page 3 for more details… ____________________________________________________________
CONTENTS [We need new sidebars below] [Insert Icons]
FINANCIAL SECURITY How to enjoy peace of mind and a comfortable retirement with guaranteed monthly tax-free* income for life… Page 3
INSIGHT: Where can you get the money you need?… Page xx HOME SAFETY 6 ways to safeguard your home from robbery -- a security expert’s tips… Page xx
3 COMMON MYTHS… Page xx QUESTIONS & ANSWERS xx common questions and answers about AAG’s Reverse Mortgage… Page xx
[Pic of kit next to bullet below]
YOUR FREE, NO-OBLIGATION REVERSE MORTGAGE INFORMATION KIT… Page 11
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 4 of 37 [Insert anything that’s legally required across bottom of page] *After finding out more about American Advisors Group’s Home Equity Conversion Mortgage, we recommend you consult with your tax advisor.
[Page Three] [Pic of real married couple enjoying time together -- but something simple rather than elegant] [Caption] xx and spouse are enjoying peace of mind, financial security and good times thanks to the unique power of a reverse mortgage
How a Reverse Mortgage Can Bring You Financial Security For Life by xx Many people living on a retirement fixed income have seen their dream of a secure, enjoyable retirement dashed thanks to… √ √ √ √
Unexpected expenses… Just not enough retirement income... Soaring prices on the items they use the most… Higher taxes that take a bigger bite than ever out of your income
And when you don’t have enough money set aside, you can suddenly find yourself unable to pay those bills… or able to afford many of the things that make life enjoyable during retirement. The good news is, you now have an alternative that can make those problems go away. It’s called a Reverse Mortgage. It helps solve the problem of running short of money… and can help you achieve financial security and peace of mind. Chances are good that you’re aware of how rising prices are eating away at your hardearned savings, pension plan and Social Security. And that unexpected expenses hit you... or the things you want to do, you just can’t.
How to stop thinking twice about spending money Unfortunately, too many retirees must think twice about: •
Major expenses such as buying a new car or putting a new roof on your home…
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 5 of 37 • Taking a cruise or visiting your grandchildren… •
Paying for elective medical procedures that can mean a healthier, happier life…
•
Putting in the new heater, air conditioning or sprinkler system you need…
•
Indulging in some of life’s pleasures such as dining out with friends, going to a play or concert, or even just seeing a movie.
•
Helping out your children and grandchildren or giving to your church or favorite charity without worry.
Or downsizing to your dream home or second home
And that’s not even considering unforeseen expenses or emergencies that always seem to appear at the wrong times. [Insert “Greatest Advantage” sidebar on page four] The good news is that thousands of homeowners just like you are enjoying peace of mind and gaining financial independence and security by turning to the equity they’ve built up in their homes—and to Reverse Mortgages.
How the new Reverse Mortgages can save your retirement A Reverse Mortgage is a unique source of monthly tax-free* “income” for life. It’s a mortgage, based on your home’s value, that provides you with tax-free* monthly advances against the equity you’ve built up in your home. However, unlike a traditional mortgage, you never have to make a payment on the loan as long as you live in your home. Instead, you receive payments from the lender and repayment is postponed until you leave the home. Better yet, the maximum repayment is limited to the fair market value of your home at the time it is sold—regardless of how much the lender has loaned you. This protects you and your heirs from any unexpected expenses. In other words, a Reverse Mortgage can provide you with the money you need to enjoy a safe, secure retirement without ever having to worry about making another house payment.
6 Powerful Advantages that May Surprise You A Reverse Mortgage offers many unique advantages that most people are never told about. These additional benefits can improve your life dramatically... it’s like your house paying you back for all the years you’ve paid for it.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 6 of 37 Here’s how it works: Advantage #1: As soon as your loan goes through, your monthly mortgage payments end. Period. If you pay your tax and insurance, you’ll never make another house payment for as long as you live in your current home and maintain your other obligations. Advantage #2: You may get a cash payout — depending on your age and the value of your home. Take it in monthly payments or in a lump sum. It’s entirely up to you. Advantage #3: The money you receive is completely TAX-FREE!* It won’t have any impact on your Social Security payments or Medicare benefits. [Insert Home Purchase chart] Advantage #4: A Reverse Mortgage can help you buy a new home when it’s time to right size to a smaller or lower maintenance home. You simply combine the proceeds from your home’s sale with a Reverse Mortgage on your new home. You get the home you want — without the monthly mortgage payment. And you often wind up with a significant amount of money left over. For example, suppose you own a home worth $500,000 and wish to move to a new home that’s selling for $350,000. You sell your current home and then use $200,000 of the proceeds for a down payment. You also use $150,000 from a Reverse Mortgage for purchase to complete the new home purchase. You are left with $300,000 to use as you please — and you have no monthly mortgage payments. [Insert Social Security Benefits Estimator] Advantage #5: A Reverse Mortgage can help you delay receiving Social Security benefits, which makes you eligible to receive a larger benefit later in life. As you know, the longer you hold off on collecting Social Security benefits, the larger your benefit is. For example, suppose your monthly Social Security benefit at age 62 is $1,016. By delaying benefits until age 70, you increase your monthly check to $1,789 — $773 more per month. Furthermore, since the money you receive from a Reverse Mortgage isn’t considered income, it doesn’t reduce your Social Security, Medicare or retirement benefits by even a penny. [Quote Box: pull social security quote] Advantage #6: A Reverse Mortgage can help you avoid taking money from your stock market retirement accounts during a market downturn - or any time.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 7 of 37 When you have the money from a Reverse Mortgage available to you, you can avoid taking money from your retirement accounts. This can mean you won’t have to take money out of your account during a market downturn, which can be costly. Or, keep the money until you need it. Furthermore, distributions from retirement accounts can be subject to taxation and may increase your tax liability. However, since the proceeds from a Reverse Mortgage aren’t considered income, no taxes are due. [Quote Box: pull investments quote]
How do you qualify for a Reverse Mortgage? It’s easy to qualify for a Reverse Mortgage. You simply have to meet three conditions: Condition #1: The borrower on title must be 62 years or older (a non-borrowing spouse may be under age 62). Condition #2: The borrower must own the home and meet the financial requirements of the Reverse Mortgage program Condition #3:
The home must be the borrower’s primary residence
That’s it! Nothing more!
The experts agree: It’s a great concept This unique financial alternative is quickly catching on among homeowners age 62 and older, and among financial experts. It is estimated that XX# Americans now have a reverse mortgage... and AAG is the largest. [Insert as many quotes as possible] [Insert pictures of each person below] √√ John Salter, Ph.D., Assistant Professor of Financial Planning at Texas Tech University says: “It’s going to be more important to look at housing wealth as a resource to sustain retirement because a house is a big part of a baby boomer’s wealth compared to just portfolio value. A reverse mortgage is a nice addition for risk management—and for many people it’s probably going to be a need rather than a want.” √√ Barbara Hower, a Professor of Gerontology, says: “Using a reverse mortgage to delay taking Social Security is a very powerful tool. Determining when to take Social Security is probably one of the most important decisions a retiree makes because it’s lifetime income. So, if you can use reverse mortgage proceeds to delay taking Social Security benefits for as long as possible, that provides you with greater monthly
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 8 of 37 income.” √√ Real estate tax attorney and theoretical physics Ph.D. Barry Sacks says: “One question friends ask is would do it myself and the answer is not only would I, I have. And I'm very very pleased with the result. It has really made my life in retirement a great pleasure. It enabled me not to worry.”
How you can live off of your home, and stay in it, too—5 powerful Guarantees To take advantage of all these benefits, you may want to consider American Advisor Group’s (AAG) Reverse Mortgage. AAG has helped thousands of Americans eliminate their existing mortgages, pay off debt, cover medical expenses and enjoy their retirement more by offering them a special Reverse Mortgage loan. If you are 62 or older and own a home, you will probably qualify to receive five powerful guarantees:
Guarantee #1: You’ll receive monthly tax-free* income for life. Let’s say you are 75 years old and own a home independently assessed by a real estate appraiser to be worth $500,000. With AAG’s Reverse Mortgage, you could receive $xx per month for as long as you live in your home. [Insert box: testimonial for the above] [Insert “Special Focus” sidebar across the bottom of the page that contains the paragraph below] In addition, you may set up a reserve account (like a line of credit for emergencies) and/or receive a lump sum of money giving you added financial security (see the article below for examples).
Guarantee #2: You’ll have no payments due during your lifetime as long as you live in your home. Like many other homeowners age 62 and over, you’ve made mortgage payments for years. But with this plan, as long as you live in your home, you’ll have no repayment obligation. That means no new monthly loan payments for you to make, ever. [Insert box: testimonial]
Guarantee #3: You’ll retain full ownership of your home, along with the benefits of appreciation. With AAG’s Reverse Mortgage, you do not sell your home. Your home remains your
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 9 of 37 property, with full title and ownership. Better yet, you can continue to live in the home in which you’ve raised your family and still enjoy your neighbors and friends. It’s the best of both worlds—monthly income and the comfort of living in your home. [Insert box: testimonial]
Guarantee #4: You can live in your home as long as you wish, since you remain the owner. The beauty of this plan is that you can enjoy financial security and the great life without moving from your home. You’ve built up a lifetime of memories in your home. And now, you can add to these memories with friends, neighbors and family…all with the financial independence you’ll gain with AAG’s Reverse Mortgage. Now, that’s peace of mind.
Guarantee #5: You can sell your home whenever you wish... buy your dream home... downsize... or get a second home... It’s your choice. [Insert Sidebar: Dream home/2nd home]
Do all the things you’ve always dreamed of doing As a homeowners who may qualify for AAG’s Reverse Mortgage, what would you do with your new found wealth? You can use your tax-free cash* [in my mind, “cash advance” connotes a credit card cash advance with a high interest rate] to: √
travel
√
purchase new cars
√
repair and remodel your home
√
buy gifts for your loved ones
√
fund your grandchildren’s education
√
pay bills and expenses
√
eliminate your current debt
√
pay off other loans or debt
√
cover your medical expenses and drug costs
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 10 of 37 √ replace lost job income √
do the things you’ve always dreamed of doing
√
be generous with those you love and the charitable causes you support
All without tapping into savings, investments or current income. While a Reverse Mortgage may not be for everyone, plans like AAG’s can certainly be a godsend for homeowners with money tied up in their homes and no viable way to access it. Special arrangements have been made for readers of this issue to find out more about AAG’s Reverse Mortgage. See page xx for your free, no-obligation Information Kit, or call TOLL-FREE 1-855-224-3520.
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Call TOLL FREE for valuable information: 1-855-224-3520 or return this certificate today to meet one of our representatives [Left column]
Remember, this plan’s major benefits are: √
Guaranteed monthly tax-free* “income” for life…
√
No new loan payments and no repayment obligation during your life…
√
Never owe more than the market value of your home…
√
Continue to own and live in your home…
√
No other assets like savings or your pension tapped…
√
You may use the money for any purpose
√
You can take out cash in a large lump sum... or get a monthly payment
√
Your Social Security or Medicare will not be affected
[Right column -- with pic of each item] Your FREE, no-obligation Information Kit includes: FREE Special Report #1: Your Guide to Reverse Mortgages FREE Educational DVD: Guide to a Reverse Mortgage and a Better Life with Fred Thompson FREE Special Report #2: Reverse Mortgage Information for Children and Caregivers FREE Special Report #3: Reverse Mortgage Retirement Planner [Phone bonus?] [Certificate Border]
Free, No-Obligation Information Kit Request Certificate American Advisors Group, Inc., 3800 W. Chapman Avenue, 3rd & 7th Floors, Orange, CA 92868
[Spread pic of the info kit to right of PAS below]
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☐ YES! I want to find out more information on how AAG’s unique Reverse Mortgage can bring me peace of mind and a better life in retirement. Please send my FREE, no-obligation Information Kit to… Name: ________________________________________________________________________ Address: ______________________________________________________________________ City:__________________________State:________ Zip: _____________ Phone number: _________________________________________________________________ Email address: __________________________________________________________________ Thank you for requesting your FREE, no-obligation American Advisors Group Reverse Mortgage Information Kit Mail this certificate in the postage-paid envelope provided to: American Advisors Group, Inc., 3800 W. Chapman Avenue, 3rd & 7th Floors, Orange, CA 92868
For faster service, call Toll-Free 1-855-224-3520
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Special Worry-Free Retirement Issue for Retired Homeowners
“More than one million homeowners are using the equity in their homes to create the retirement of their dreams” [Pic of happy older couple] [Caption] xx and xx of xx have gone from barely getting by to enjoying their retirement and living life to the fullest.
Retirement looked rather grim for xx and xx of xx. They were looking at 20 or 30 years of scrimping just to get by. And the idea of taking a nice vacation… buying a new car… or even visiting their grandchildren was simply out of the question. But then they discovered how to turn the equity in their home into monthly income that gave them breathing room, peace of mind and the cash they needed to live well in retirement. See page three inside to discover the simple secret that the xx’s and more than a million other senior homeowners are using to transform their retirement for the better. Inside: √
Breakthrough Program: A unique mortgage that converts the equity in your home into monthly tax-free income . And you never make another house payment again!…see page xx inside
[insert picture of Fred Thompson] √
A special message from Senator Fred Thompson: How you can take advantage of the safe, effective financial tool that allows you to make the most of your retirement… see page xx inside
√
Bargains & Adventures: FREE book tells you how to save hundreds of dollars…see page xx inside [this will be a sidebar bullet, remove from this list]
√
#1 greatest problem facing senior homeowners: And a remarkable solution…see page xx inside
√
Worried about tomorrow’s bills? Here’s how you can restore your standard of living and live better than you might imagine…see page xx inside
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 14 of 37 √ 6 ways to safeguard your home from robbery: A security expert’s tips…see page xx inside √
And much more…!
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 15 of 37 Sidebars and Charts [Could replace pull quotes on page four] “A reverse mortgage credit line offers great flexibility. It can be used anytime, for any purpose, and it grows.” —Jack Guttentag, Professor of Finance Emeritus, formerly Jacob Safra Professor of International Banking, Wharton School and Chief of the Domestic Research Division, Federal Reserve Bank of New York [“Great Advantage” sidebar -- place on page five]
xx Advantages of a Reverse Mortgage √
You get guaranteed monthly tax-free* income for the rest of your life…
√
You never have to make another mortgage payment for as long as you live in your home…
√
You never owe more than the market value of your home…
√
You continue to own and live in your home and can do so for the rest of your life …
√
Tapping your home equity allows you to avoid using other assets such as your savings or your pension …
√
You can use the money for any purpose you choose…
√
You reduce your stress and give yourself more stability and security for a better retirement
[xx insert additional benefits]
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How a Reverse Mortgage can help you boost your Social Security benefits As you may know, the longer you postpone taking benefits from Social Security, the more money you receive each month. A Reverse Mortgage can help make this happen by providing you with monthly tax-free* “income”—possibly helping you delay taking your Social Security benefits. Take a look at the chart below for an example of how delaying your Social Security benefit can put significantly more money in your pocket down the road.
Social Security Benefits Estimator Age of Retirement
Estimated Monthly Benefit
62
$1,016.00
65
$1,265.00
68
$1,572.00
70
$1,789.00
Social Security benefits calculator from www.bankrate.com/calculator/retirement/social-security-benefitscalculator-aspx
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Turning Your Retirement into a Dream: 6 Surprising Strategies You Can Use Now You’ve worked hard your whole life to build your retirement nest egg. However, for many, it might not be enough. Some are forced into living a pressure-filled, cash-short retirement, because they don’t have the money to pay bills or do the things they would like to do. But a reverse mortgage gives you the cash you need to live well and enjoy your retirement. Many financial advisers recommend one of the smartest strategies is to take advantage of a government-insured reverse mortgage. You simply convert a portion of your home’s equity into ready cash to supplement your existing retirement accounts, pensions, and social security. It’s kind of like your house is paying you back for all the years you’ve paid for it. Here are 6 surprising strategies you should consider, so you can get started turning your retirement into a dream:
Strategy #1: Avoid or minimize using your 401k, pensions, or retirement savings A reverse mortgage gives you the cash you need to fund your retirement - without having to touch your savings or investments. This allows your assets to grow over the long run, leaving you with an even bigger portfolio 10 or 20 years from now - instead of using all your money up now.
Strategy #2: Emergency funds for the unexpected With your reverse mortgage, you will have access to your extra money whenever you need it - 24 hours a day. You will be able to pay for elective medical procedures, fix a roof, pay for a new car - anything. You will have peace of mind that you will be able to pay for any unforeseen emergencies.
Strategy #3: Cash for special trips and events You could travel to places you always dreamed of... maybe go to Disneyland, or take that cruise you’ve always talked about. Your reverse mortgage would allow you to go visit your
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Strategy #4: Money for the things you want With a reverse mortgage, you could finally purchase some of those extra things you’ve always wanted. For example, you could buy that camper, dine out with friends whenever you want, or go to a play or movie theater. You could even give nicer birthday presents to your family and friends...
Strategy #5: Pay off your mortgage, taxes or other large expenses A reverse mortgage gives you the freedom to pay off large expenses or other debts you may be worried about. You could catch up on taxes you owe, pay off credit cards, or make home improvements you’ve been putting off. And most importantly, you will never have to pay another mortgage payment for the rest of your life!
Strategy #6: You could double your social security income [insert chart on page 7 of the “Reverse mortgage retirement planner”] If you delay your social security payments from 62 to 63... or 64 to 65... or even until 70... you’ll get a lot more each month for social security. A reverse mortgage may give you the ability to delay your social security... and double your lifetime social security benefits. For example, if you are 62-years old, you are eligible to start receiving your lifetime social security benefit of $1,016 per month... But if you use this strategy and delay your social security benefits until age 70, you would receive $1,789.00 a month for life... almost double what you would’ve received at age 62. A reverse mortgage is a versatile, safe and effective strategy for you to have a great retirement. It’s a quick and effective way for you to lead a happy, healthier life. For more details on how this works, call Toll-Free 1-855-224-3520 to claim your FREE, no-obligation Reverse Mortgage Information Kit.
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How to Use a Reverse Mortgage to Buy Your Dream House or Second Home If you and your spouse have been thinking about downsizing your home and moving into a new dream home, then a reverse mortgage could be the perfect strategy for you... ... Or, maybe with the extra money you can get from a reverse mortgage, you could move to a place with better weather, get that condo by the lake or the ocean, or even move closer to the kids and grandchildren. With a reverse mortgage, you’ll have instant access to the extra money you need to live a more comfortable, worry-free retirement in the place you want... and you will eliminate your current mortgage payments forever. Here’s how you can buy your dream house or 2nd home with a reverse mortgage: First, you sell your current home and put the money aside as your look for your new home. When you find the new house you want to buy, you can use a portion of the money from your last house as a down payment on your new house. Next, you can use a reverse mortgage to finance the rest of your new home, and keep the rest of the money from your previous home. [insert graphics from page 12 and 13 of the red ‘Your Guide to Reverse Mortgages’] For example: Step One: You sell your existing home for $500,000. Step Two: You find a NEW home for $350,000 Step Three: Use $200,000 as a down payment. Step Four: Use $150,000 HECM to complete purchase And you still have $300,000 at your disposal and no monthly mortgage payments. [insert box] Here are some benefits of using your reverse mortgage to buy a new home: Right-size to a single-story or lower maintenance home
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 20 of 37 Buy a home closer to family and friends Lower your cost of living during retirement No monthly mortgage payments Make your money go farther by having less expense Live be a lake or ocean, in a state with less taxes [end box] Regardless of how long you live in the home or what happens to your home’s value, you only make one down payment towards the purchase, and then the house pays you, for the rest of your life. For more details on how this works, call Toll-Free 1-855-224-3520 to claim your FREE, no-obligation Reverse Mortgage Information Kit.
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3 Common Myths About Reverse Mortgages Myth #1: I will lose my home ownership... NOT TRUE! You Remain the Homeowner! How does the process work? A reverse mortgage loan allows you to turn some of the equity in your home into cash. You will continue to live in your home, and yes... you retain ownership. Plus, you and will not be required to make any more monthly mortgage payments. Instead of repaying the loan monthly, the loan balance is repaid when all borrowers have left the home. You will be required to pay for property taxes, home insurance and home maintenance. Does the bank own my home? No. You own your home. You have the title. You are just borrowing against the value of the home. All these details and applications can be found in your FREE, no-obligation Reverse Mortgage Information Kit.
Myth #2: The Fees are Too High... NOT TRUE! Your Reverse Mortgage Costs are Regulated and Insured by HUD... You may be surprised to hear that today’s reverse mortgage has a variety of options. You may qualify for lower costs, and now there are many additional consumer protections in place to provide you and your family more confidence for your retirement security... ... and your origination fees are regulated by HUD, so you can be sure you are not being overcharged.
Myth #3: There is Too Much Personal Information Required NOT TRUE! You Only Submit Your Basic Contact Information... You need something that’s quick and easy to understand, and you don’t want to get involved in time-consuming paperwork. That’s why we make everything as simple as possible for you. You just fill out your name, e-mail, and telephone number. You will get all of your questions answered without wasting your
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 22 of 37 time on paperwork. It’s that easy! Discover if a Reverse Mortgage is the right move for you by claiming your FREE, noobligation Reverse Mortgage Information Kit. Just pick up the phone and call Toll-Free 1-855224-3520.
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[“Special Focus sidebar]
SPECIAL FOCUS
How much tax-free* “income” could you receive from a Reverse Mortgage ? Your Reverse Mortgage can be tailored to meet your needs. Your options include monthly income…a lump sum payout…and a line of credit you can draw on at any time. Here are two examples: EXAMPLE A: Based on a $xx home appraisal at age 75, here are three options OPTION #1
OPTION #2
OPTION #3
Monthly Income
$xx
$xx
$xx
One Lump Sum Payout
xx
xx
xx
Reserve Account
xx
xx
xx
EXAMPLE B: Based on a $xx home appraisal at age 75, here are three options OPTION #1
OPTION #2
OPTION #3
Monthly Income
$xx
$xx
$xx
One Lump Sum Payout
xx
xx
xx
Reserve Account
xx
xx
xx
This chart demonstrates how AAG’s Home Equity Conversion Mortgage works. Actual monies available to homeowner(s) may vary depending on individual circumstances. Option #1 is “monthly income only.” Option #2 is “monthly income and one immediate check,” and Option #3 is “monthly income, immediate check and reserve account.”
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How these savvy retirees found freedom from financial worry and stress—and made their retirements more comfortable “I was able to take a lot of worry out” “What I wanted to achieve was eliminating debt. It wasn’t a lot, but I wanted to streamline my living expenses and by doing so I was able to take a lot of worry out of what I will be doing financially in 10, 15 or 20 years from now.” —Chester A., Washington
“Made it possible for us to retire 10 years sooner!” “Not only did working with American Advisors Group to obtain a HECM for Purchase make it possible for us to retire ten years sooner than we thought we could, it allowed us to take advantage of a strong real estate market to obtain our dream home.” —Andy and Beatrice H., Florida
“One of the best decisions I have ever made…I am now debt free” “Getting a Reverse Mortgage was definitely one of the best decisions I have ever made. The peace of mind and flexibility the Reverse Mortgage offered me is immeasurable. The professionalism and friendly manner of your specialist was outstanding. He made me feel like I was your sole customer. I am now debt free thanks to my Reverse Mortgage.” —Danny W., Washington
“My husband and I are retired and enjoying life after many years of hard work” “After the stock market crashed, my husband and I were contemplating how to deal with our financial situation. The next day I called American Advisors Group to find out about the Reverse Mortgage program. The specialist at American Advisors Group was very professional and handled all my phone calls and answered all my questions. My skepticism disappeared and we decided a Reverse Mortgage was the right solution. Today, my husband and I are retired and enjoying life after many years of hard work. Thank you American Advisors Group for providing us with a more comfortable retirement.” —Maurine L., Oregon
“I was able to pay down my credit card debt, get my car repaired and make
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my home improvements” “I want to thank you for helping me obtain a Reverse Mortgage. It has been 3 months and now I have the peace of mind knowing that the money is here when I need it. I was able to pay down my credit card debt, get my car repaired and make my home improvements around the house. Thank you for being so helpful, answering every question I had, and making the process so professional and easy. —Ann E., Virginia
“Has truly given me a new outlook on life; one with higher quality and newfound peace” “I wanted to let you know how much I appreciate American Advisors Group. The Reverse Mortgage has truly given me a new outlook on life; one with higher quality and newfound peace. I now have the ability to reside at my home for the rest of my life. The Reverse Mortgage was certainly the right avenue for me! Thank you for giving me the power to handle any unforeseen issues without fear and worry.” —Michael S., New York
“Having the funds easily available gives me the power to handle unforeseen issues with grace and in stride” “Reverse Mortgage has truly given me a new leas on life. Having the funds easily available gives me the power to handle unforeseen issues with grace and in stride. American Advisors Group certainly has a good group of wonderful people representing them. My Advisor made the process both interesting and joyful. He was friendly and professional and had great patience. I can only say that I am so very pleased with the service American Advisors Group provided — just like I am grateful for my new-found freedom. Thank you very much. —G.L.S., Oregon Discover if a Reverse Mortgage is the right move for you by claiming your FREE, noobligation Reverse Mortgage Information Kit. Just pick up the phone and call Toll-Free 1-855224-3520.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 26 of 37 [Inflation sidebar] to be updated by Ben or Courtney
How much is inflation costing you? Here’s what items in Los Angeles, California cost 25 years ago and what they cost now… Item
1990
2015
New Home
$479,000
$875,000
New Car
$16,000
$29,215
$24
$44
$1.70
$3.10
Ticket to Movies
$7
$13
One Pair Woman’s Shoes
$62
$113
One Pound of Coffee
$2.90
$5.29
Bottle of Pain Reliever
$3.60
$6.57
Ticket to Concert Loaf of Bread
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[“If you are retired” sidebar]
If you’re a retired homeowner, you don’t have many options to get the money you need
Go back to work…
You can rejoin the workforce, and give up some of your retirement dreams.
Sell your home and move to small apartment…
You must move, and give up the comfort of the home you’ve lived in for years.
Typical home equity loan…
You must show proof of income to quality for a loan and make monthly payments
Borrow from the children…
Even if they have the money, this may cause a strain in your relationships.
Tap further into life savings…
With economic uncertainty, you may run out of money.
Reverse Mortgage …
Regular tax-free* “income,” no monthly payments, you continue to own and live in your home. It’s easier than you think to get $100,000, $200,000 $300,000 or more tax-free*. For more information on AAG’s Reverse Mortgage , see page xx. Find out how you can receive your free, no-obligation Information Kit by calling Toll-Free 1-855-224-3520.
What have some homeowners done with their additional tax-free* “income” from Reverse Mortgage? [See page eight of magalog. Needs to be updated]
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[FAQ sidebar -- This will need to be trimmed down considerably]
xx answers to questions most folks ask about Reverse Mortgage When homeowners age 62 and older want to find out more about AAG’s unique Reverse Mortgage, here are some of the questions they most frequently ask. Q. Why should I select your Reverse Mortgage rather than a typical home equity loan or second mortgage? A: The main reason is that AAG’s Reverse Mortgage is much safer. Remember, traditional home equity credit lines and other forms of second mortgages require immediate payments to the bank. If borrowers miss payments, they could lose their homes. AAG’s Reverse Mortgage is totally different. You have no repayment obligation as long as you live in your home. Your loan is paid off, either by you or your estate, when you leave your home. Q. Will the lender, in this case AAG, ever take ownership of my home? A. No, you keep title and full ownership of your home. Q. I own my house, but I still owe on the mortgage. Can I still qualify? A. Yes. However, all existing debt on your home must be paid off first. AAG can provide you a lump sum advance to help you do just that. Q. My home is now worth about $200,000, but I don’t need as much monthly income as that would provide. Can I sign up and apply only part of my home’s value, say $100,000? A. Yes. You decide how much of your home’s value you want to apply towards the plan, as long as it’s more than $75,000. Q. How is the amount of the monthly advance determined? A. It is based on the current market value of your home and your age. Your specific situation can be evaluated by an AAG representative at a special meeting in your home. Q. Do I still have to pay a mortgage payment when I qualify? A. No! You could never pay a mortgage payment again. But there are a few obligations you’ll still have. Well tell you what they are. Q. Will a Reverse Mortgage affect my Social Security, Medicare or pension benefits? A. No, these benefits are not impacted. Reverse Mortgage funds are considered loan proceeds and not income. However, Medicaid and other income-based benefits* may possibly be
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 29 of 37 affected. One big benefit of taking a Reverse Mortgage is that it may make it possible for you to wait longer to access Social Security benefits. The longer you wait, the more you may receive. This is likely to boost your lifetime retirement income. Q. What if my credit score isn’t quite up to snuff? A. This shouldn’t be a problem. Q. Will the bank own my home or can my heirs inherit it? A. No. Reverse Mortgage borrowers retain ownership of their homes. You are not relinquishing title or ownership. You are simply borrowing against the equity you’ve built up in your home. A borrower may not lose their home under normal circumstances, as long as they comply with loan terms. Any equity in your home that is left over after you leave the home and pay back the loan belongs to you or your heirs. Q. What steps do I need to take to apply for a Reverse Mortgage? A. It’s surprisingly simple. Step One: Call AAG at 1-855-224-3520 and speak with one of our loan consultants. Step two: Go through government mandated counseling on the pros and cons of taking a HECM. Step three: Submit your application. Step four: Processing and approval. Step five: Closing. Q. If I never make a payment, how is the loan paid back? A. The loan is paid back after you leave the home and it is sold. I you or your heirs wish to keep the home after you’ve stopped living in it, you can use a conventional mortgage to pay back the loan. Q. Is a Reverse Mortgage insured? A. Yes, by the U.S. government’s Federal Housing Administration’s (FHA). Q. Exactly what is a Reverse Mortgage? A. We’ll tell all you want to know on page three of A Guide to Reverse Mortgages Q. How much money might I get? A. You’ll get the answer on page five. Q. What if the loan amount ends up more than the value of the home? Who will be responsible for the loan? A. Reverse Mortgages are non-recourse loans. This means that if the loan balance somehow
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 30 of 37 ends up surpassing the value of the home, the lender cannot collect more than the value of the home. Under the HECM program, the difference between the loan balance and the home value is covered by the Federal Housing Administration’s (FHA) insurance fund. Q. What happens to the family home? A. Borrowers may leave the home to loved ones as they wish, and heirs may still choose to sell or keep it after repaying the loan. Any remaining equity goes to the borrower or the borrower’s estate. Q. Can I lose my home? A. No, as long as you continue to pay your taxes and insurance and to maintain the home. Q. What happens if my spouse is under 62? A. The only age requirement is that the borrower be 62 or older. If your spouse is under age 62, they can continue to live in the home for as long as they wish. Q. A. Your FREE, no-obligation Reverse Mortgage Information Kit will include other common questions and answers. See page xx or call Toll Free 1-855-224-3520.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 31 of 37 [About AAG -- company profile sidebar]
A company you can trust American Advisors Group (AAG) is the number one Reverse Mortgage company in the nation, closing more such loans than any other company or organization. The company is an approved lender of the U.S. Department of Housing and Urban Development and is rated “A+” by the Better Business Bureau. AAG is also a member of the National Reverse Mortgage Lenders Association (NRMLA) And client surveys reveal that 97% of those who have done business with AAG are completely satisfied…98% would recommend an AAG Reverse Mortgage to a friend…and 84% say their lives have improved since obtaining an AAG Reverse Mortgage. [Visuals to include]
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Fred Thompson Touts the many advantages of AAG’s Reverse Mortgages Former U.S. Senator and presidential candidate Fred Thompson is a longtime proponent of Reverse Mortgages. He’s also a spokesman for the nation’s #1 Reverse Mortgage lender, American Advisor’s Group (AAG). Senator Thompson calls Reverse Mortgages a “safe, effective, financial tool that allows retirees to make the most of their retirement by turning their own equity into tax-free cash — without any monthly mortgage payments. It’s money that you can use for anything, like paying off some bills.” He also points to how they allow retirees to get the money they need to live well, while still being able to stay in their own home when finances get tight. To learn more about the many benefits of a Reverse Mortgage, Senator Thompson recommends that potential borrowers get a FREE, no-obligation copy of American Advisor Group’s Information Kit, which includes three special reports and a DVD. See page xx to claim your free copy.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 33 of 37 [Cons sidebar -- in progress] Client mentioned that it’s important to cover some of the cons What happens if you don’t repay the loan, taxes, insurance, etc. Needs balance It’s not for you if you plan to move in the next few years, if you want to pass it on to your heirs. We need that balance to keep the regulators at bay. We can’t assume that you’re going to qualify. You may qualify. You may be able to. Retirees can get equity. Not you can get equity.
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How much money could you qualify for? What is your home worth?
______
How much equity do you have in your home?
______
Multiply the equity in your home by xx%
______
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 35 of 37 Items we might still want to integrate [Some of this has been integrated in different ways] It’s easier than you think to get $100,000, $200,000 $300,000 or more tax free How does a Reverse Mortgage help my parents and me? (page 3 The Children and Caregivers Booklet) House payments you’ve been making have built up equity for you that you may unlock with a Reverse Mortgage. If you qualify, your current mortgage will be paid off right away. You can use the cash to pay off your other debts — and even make your retirement better. --Imagine the freedom and peace of mind that would give you. A really good way to unlock the equity in your home is through a Reverse Mortgage from AAG. If you’re age 62 or over and own your own home, you may qualify for this special type of loan. Best of all, it’s insured by the Federal Government — so you can retain ownership and possession of your home once you have the money (as long as it’s your primary residence and you maintain your other obligations.) --Over one million US homeowners, age 62 and over, have taken advantage of this FHAinsured loan to enjoy a more secure and comfortable retirement. --Start living a better life today --Your Information Kit includes three free guides and a CD narrated by former Presidential candidate Fred Thompson. The Kit tells you just about all you need to know about a Reverse Mortgage and answers these questions and more, when you qualify --People like the ease of process. People trust Fred Thompson Biggest overall fears: Fears: trust, bad deal, not understanding, takes too much time and paperwork
Biggest objections: losing home/scam, fees, cost of loan, am I getting the best deal? Government requirements and complicated contracts are the most irritating factors. People don’t want to get involved in time-consuming paperwork that’s hard to understand
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 36 of 37 From Your Guide to reverse mortgages Convert a portion of your home equity into tax-free money A reverse mortgage loan allows you to turn some of the equity in your home into cash to improve your lifestyle in whatever way you choose. You will continue to live in your home, retain ownership and will not be required to make any monthly mortgage payments during the loan period. Instead of repaying the loan monthly, the loan balance is repaid when all borrowers have left the home. You will be required to pay for property taxes, home insurance and home maintenance. You’ll have the flexibility to choose from one or more of these loan disbursement options: Lump sum payout, monthly installments, HECM Growing Line of Credit --Use a Reverse Mortgage for purchase loan to buy a home that better fits your needs (page 12 of guide) Reverse Mortgage Information for Children and Caregivers A reverse mortgage can… pay for in-home care services, reducing the need for expensive nursing homes and offering improved quality of care Fund in-home care, which can be ramped up as gradually or quickly as needed — from household chores to 24-hour nursing care Allow access to a stand by HECM reverse mortgage growing line of credit ready to help pay for unplanned expenses Flexible loan disbursement options: A lump sum payout: pay off large expenses or other debt Monthly payments: For a set period of time or for as long as you live in your home and comply with loan terms. A HECM growing line of credit: Access to funds when you need them --For couples, there is a 91% chance that one of them will require care The cost of senior care may range from $29,540 per year for in-home care to more than $94, 170 per year for convalescent care Reverse Mortgage Retirement Planner You can even convert your equity or your line of credit, at any time, to annuity style monthly payments for a period of time or for the rest of your life. Or build in additional security
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Secure Retirement Helping homeowners age 62 and over enjoy financial security and the best of life [Photo of NAME] [Caption] One woman’s story: Name, AAG client, xx city, state
[Cover bullets/icons] FINANCIAL SECURITY How homeowners are enjoying monthly tax-free* income for life without additional expenses (page 3) SPECIAL FOCUS: A mortgage that pays YOU (page 5) HOW RISING PRICES HURT YOUR STANDARD OF LIVING (page 7) THE SECRET TO A WORRY-FREE RETIREMENT Do what you’ve always dreamed of doing (page 6) PROTECT YOUR HOME FROM ROBBERY (page 7) SIX SURPRISING RETIREMENT STRATEGIES (page XX) HOW TO USE YOUR HOME AS A RETIREMENT TOOL (page XX) 3 MYTHS ABOUT REVERSE MORTGAGES EXPLAINED (page XX) [Diagonal banner in bottom right corner] Complimentary Copy
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 2 of 37 [Cover B] [Date to left of Masthead] Fall 2015 [Masthead] SPECIAL ISSUE ON REVERSE MORTGAGES
Secure Retirement Helping homeowners age 62 and over enjoy financial security and the best of life [Photo of Fred Thompson] [Caption] Former Presidential candidate and U.S. Senator Fred Thompson is passionate about sharing the many surprising benefits of Reverse Mortgages with his fellow retirees.
[Cover bullets] FINANCIAL SECURITY How homeowners are enjoying monthly tax-free* income for life without additional expenses (page 3) SPECIAL FOCUS: A mortgage that pays YOU (page 5) HOW RISING PRICES HURT YOUR STANDARD OF LIVING (page 7) THE SECRET TO A WORRY-FREE RETIREMENT Do what you’ve always dreamed of doing (page 6) PROTECT YOUR HOME FROM ROBBERY (page 7) SIX SURPRISING RETIREMENT STRATEGIES (page XX) HOW TO USE YOUR HOME AS A RETIREMENT TOOL (page XX) 3 MYTHS ABOUT REVERSE MORTGAGES EXPLAINED (page XX) [Diagonal banner in bottom right corner] Complimentary Copy
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 3 of 37 [Page Two]
SPECIAL FOCUS ON REVERSE MORTGAGES: The exciting way senior homeowners are increasing their monthly “income” - generating cash without creating new expenses… ____________________________________________________________ [Headline over pic of xx]
ONE XX’S STORY: xx Name of City, State xx [Copy next to pic] Insert testimonial [Centered underneath]
Interesting? Please read page 3 for more details… ____________________________________________________________
CONTENTS [We need new sidebars below] [Insert Icons]
FINANCIAL SECURITY How to enjoy peace of mind and a comfortable retirement with guaranteed monthly tax-free* income for life… Page 3
INSIGHT: Where can you get the money you need?… Page xx HOME SAFETY 6 ways to safeguard your home from robbery -- a security expert’s tips… Page xx
3 COMMON MYTHS… Page xx QUESTIONS & ANSWERS xx common questions and answers about AAG’s Reverse Mortgage… Page xx
[Pic of kit next to bullet below]
YOUR FREE, NO-OBLIGATION REVERSE MORTGAGE INFORMATION KIT… Page 11
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 4 of 37 [Insert anything that’s legally required across bottom of page] *After finding out more about American Advisors Group’s Home Equity Conversion Mortgage, we recommend you consult with your tax advisor.
[Page Three] [Pic of real married couple enjoying time together -- but something simple rather than elegant] [Caption] xx and spouse are enjoying peace of mind, financial security and good times thanks to the unique power of a reverse mortgage
How a Reverse Mortgage Can Bring You Financial Security For Life by xx Many people living on a retirement fixed income have seen their dream of a secure, enjoyable retirement dashed thanks to… √ √ √ √
Unexpected expenses… Just not enough retirement income... Soaring prices on the items they use the most… Higher taxes that take a bigger bite than ever out of your income
And when you don’t have enough money set aside, you can suddenly find yourself unable to pay those bills… or able to afford many of the things that make life enjoyable during retirement. The good news is, you now have an alternative that can make those problems go away. It’s called a Reverse Mortgage. It helps solve the problem of running short of money… and can help you achieve financial security and peace of mind. Chances are good that you’re aware of how rising prices are eating away at your hardearned savings, pension plan and Social Security. And that unexpected expenses hit you... or the things you want to do, you just can’t.
How to stop thinking twice about spending money Unfortunately, too many retirees must think twice about: •
Major expenses such as buying a new car or putting a new roof on your home…
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 5 of 37 • Taking a cruise or visiting your grandchildren… •
Paying for elective medical procedures that can mean a healthier, happier life…
•
Putting in the new heater, air conditioning or sprinkler system you need…
•
Indulging in some of life’s pleasures such as dining out with friends, going to a play or concert, or even just seeing a movie.
•
Helping out your children and grandchildren or giving to your church or favorite charity without worry.
Or downsizing to your dream home or second home
And that’s not even considering unforeseen expenses or emergencies that always seem to appear at the wrong times. [Insert “Greatest Advantage” sidebar on page four] The good news is that thousands of homeowners just like you are enjoying peace of mind and gaining financial independence and security by turning to the equity they’ve built up in their homes—and to Reverse Mortgages.
How the new Reverse Mortgages can save your retirement A Reverse Mortgage is a unique source of monthly tax-free* “income” for life. It’s a mortgage, based on your home’s value, that provides you with tax-free* monthly advances against the equity you’ve built up in your home. However, unlike a traditional mortgage, you never have to make a payment on the loan as long as you live in your home. Instead, you receive payments from the lender and repayment is postponed until you leave the home. Better yet, the maximum repayment is limited to the fair market value of your home at the time it is sold—regardless of how much the lender has loaned you. This protects you and your heirs from any unexpected expenses. In other words, a Reverse Mortgage can provide you with the money you need to enjoy a safe, secure retirement without ever having to worry about making another house payment.
6 Powerful Advantages that May Surprise You A Reverse Mortgage offers many unique advantages that most people are never told about. These additional benefits can improve your life dramatically... it’s like your house paying you back for all the years you’ve paid for it.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 6 of 37 Here’s how it works: Advantage #1: As soon as your loan goes through, your monthly mortgage payments end. Period. If you pay your tax and insurance, you’ll never make another house payment for as long as you live in your current home and maintain your other obligations. Advantage #2: You may get a cash payout — depending on your age and the value of your home. Take it in monthly payments or in a lump sum. It’s entirely up to you. Advantage #3: The money you receive is completely TAX-FREE!* It won’t have any impact on your Social Security payments or Medicare benefits. [Insert Home Purchase chart] Advantage #4: A Reverse Mortgage can help you buy a new home when it’s time to right size to a smaller or lower maintenance home. You simply combine the proceeds from your home’s sale with a Reverse Mortgage on your new home. You get the home you want — without the monthly mortgage payment. And you often wind up with a significant amount of money left over. For example, suppose you own a home worth $500,000 and wish to move to a new home that’s selling for $350,000. You sell your current home and then use $200,000 of the proceeds for a down payment. You also use $150,000 from a Reverse Mortgage for purchase to complete the new home purchase. You are left with $300,000 to use as you please — and you have no monthly mortgage payments. [Insert Social Security Benefits Estimator] Advantage #5: A Reverse Mortgage can help you delay receiving Social Security benefits, which makes you eligible to receive a larger benefit later in life. As you know, the longer you hold off on collecting Social Security benefits, the larger your benefit is. For example, suppose your monthly Social Security benefit at age 62 is $1,016. By delaying benefits until age 70, you increase your monthly check to $1,789 — $773 more per month. Furthermore, since the money you receive from a Reverse Mortgage isn’t considered income, it doesn’t reduce your Social Security, Medicare or retirement benefits by even a penny. [Quote Box: pull social security quote] Advantage #6: A Reverse Mortgage can help you avoid taking money from your stock market retirement accounts during a market downturn - or any time.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 7 of 37 When you have the money from a Reverse Mortgage available to you, you can avoid taking money from your retirement accounts. This can mean you won’t have to take money out of your account during a market downturn, which can be costly. Or, keep the money until you need it. Furthermore, distributions from retirement accounts can be subject to taxation and may increase your tax liability. However, since the proceeds from a Reverse Mortgage aren’t considered income, no taxes are due. [Quote Box: pull investments quote]
How do you qualify for a Reverse Mortgage? It’s easy to qualify for a Reverse Mortgage. You simply have to meet three conditions: Condition #1: The borrower on title must be 62 years or older (a non-borrowing spouse may be under age 62). Condition #2: The borrower must own the home and meet the financial requirements of the Reverse Mortgage program Condition #3:
The home must be the borrower’s primary residence
That’s it! Nothing more!
The experts agree: It’s a great concept This unique financial alternative is quickly catching on among homeowners age 62 and older, and among financial experts. It is estimated that XX# Americans now have a reverse mortgage... and AAG is the largest. [Insert as many quotes as possible] [Insert pictures of each person below] √√ John Salter, Ph.D., Assistant Professor of Financial Planning at Texas Tech University says: “It’s going to be more important to look at housing wealth as a resource to sustain retirement because a house is a big part of a baby boomer’s wealth compared to just portfolio value. A reverse mortgage is a nice addition for risk management—and for many people it’s probably going to be a need rather than a want.” √√ Barbara Hower, a Professor of Gerontology, says: “Using a reverse mortgage to delay taking Social Security is a very powerful tool. Determining when to take Social Security is probably one of the most important decisions a retiree makes because it’s lifetime income. So, if you can use reverse mortgage proceeds to delay taking Social Security benefits for as long as possible, that provides you with greater monthly
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 8 of 37 income.” √√ Real estate tax attorney and theoretical physics Ph.D. Barry Sacks says: “One question friends ask is would do it myself and the answer is not only would I, I have. And I'm very very pleased with the result. It has really made my life in retirement a great pleasure. It enabled me not to worry.”
How you can live off of your home, and stay in it, too—5 powerful Guarantees To take advantage of all these benefits, you may want to consider American Advisor Group’s (AAG) Reverse Mortgage. AAG has helped thousands of Americans eliminate their existing mortgages, pay off debt, cover medical expenses and enjoy their retirement more by offering them a special Reverse Mortgage loan. If you are 62 or older and own a home, you will probably qualify to receive five powerful guarantees:
Guarantee #1: You’ll receive monthly tax-free* income for life. Let’s say you are 75 years old and own a home independently assessed by a real estate appraiser to be worth $500,000. With AAG’s Reverse Mortgage, you could receive $xx per month for as long as you live in your home. [Insert box: testimonial for the above] [Insert “Special Focus” sidebar across the bottom of the page that contains the paragraph below] In addition, you may set up a reserve account (like a line of credit for emergencies) and/or receive a lump sum of money giving you added financial security (see the article below for examples).
Guarantee #2: You’ll have no payments due during your lifetime as long as you live in your home. Like many other homeowners age 62 and over, you’ve made mortgage payments for years. But with this plan, as long as you live in your home, you’ll have no repayment obligation. That means no new monthly loan payments for you to make, ever. [Insert box: testimonial]
Guarantee #3: You’ll retain full ownership of your home, along with the benefits of appreciation. With AAG’s Reverse Mortgage, you do not sell your home. Your home remains your
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 9 of 37 property, with full title and ownership. Better yet, you can continue to live in the home in which you’ve raised your family and still enjoy your neighbors and friends. It’s the best of both worlds—monthly income and the comfort of living in your home. [Insert box: testimonial]
Guarantee #4: You can live in your home as long as you wish, since you remain the owner. The beauty of this plan is that you can enjoy financial security and the great life without moving from your home. You’ve built up a lifetime of memories in your home. And now, you can add to these memories with friends, neighbors and family…all with the financial independence you’ll gain with AAG’s Reverse Mortgage. Now, that’s peace of mind.
Guarantee #5: You can sell your home whenever you wish... buy your dream home... downsize... or get a second home... It’s your choice. [Insert Sidebar: Dream home/2nd home]
Do all the things you’ve always dreamed of doing As a homeowners who may qualify for AAG’s Reverse Mortgage, what would you do with your new found wealth? You can use your tax-free cash* [in my mind, “cash advance” connotes a credit card cash advance with a high interest rate] to: √
travel
√
purchase new cars
√
repair and remodel your home
√
buy gifts for your loved ones
√
fund your grandchildren’s education
√
pay bills and expenses
√
eliminate your current debt
√
pay off other loans or debt
√
cover your medical expenses and drug costs
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 10 of 37 √ replace lost job income √
do the things you’ve always dreamed of doing
√
be generous with those you love and the charitable causes you support
All without tapping into savings, investments or current income. While a Reverse Mortgage may not be for everyone, plans like AAG’s can certainly be a godsend for homeowners with money tied up in their homes and no viable way to access it. Special arrangements have been made for readers of this issue to find out more about AAG’s Reverse Mortgage. See page xx for your free, no-obligation Information Kit, or call TOLL-FREE 1-855-224-3520.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 11 of 37 [Order page]
Call TOLL FREE for valuable information: 1-855-224-3520 or return this certificate today to meet one of our representatives [Left column]
Remember, this plan’s major benefits are: √
Guaranteed monthly tax-free* “income” for life…
√
No new loan payments and no repayment obligation during your life…
√
Never owe more than the market value of your home…
√
Continue to own and live in your home…
√
No other assets like savings or your pension tapped…
√
You may use the money for any purpose
√
You can take out cash in a large lump sum... or get a monthly payment
√
Your Social Security or Medicare will not be affected
[Right column -- with pic of each item] Your FREE, no-obligation Information Kit includes: FREE Special Report #1: Your Guide to Reverse Mortgages FREE Educational DVD: Guide to a Reverse Mortgage and a Better Life with Fred Thompson FREE Special Report #2: Reverse Mortgage Information for Children and Caregivers FREE Special Report #3: Reverse Mortgage Retirement Planner [Phone bonus?] [Certificate Border]
Free, No-Obligation Information Kit Request Certificate American Advisors Group, Inc., 3800 W. Chapman Avenue, 3rd & 7th Floors, Orange, CA 92868
[Spread pic of the info kit to right of PAS below]
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☐ YES! I want to find out more information on how AAG’s unique Reverse Mortgage can bring me peace of mind and a better life in retirement. Please send my FREE, no-obligation Information Kit to… Name: ________________________________________________________________________ Address: ______________________________________________________________________ City:__________________________State:________ Zip: _____________ Phone number: _________________________________________________________________ Email address: __________________________________________________________________ Thank you for requesting your FREE, no-obligation American Advisors Group Reverse Mortgage Information Kit Mail this certificate in the postage-paid envelope provided to: American Advisors Group, Inc., 3800 W. Chapman Avenue, 3rd & 7th Floors, Orange, CA 92868
For faster service, call Toll-Free 1-855-224-3520
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 13 of 37 [Back Cover]
Special Worry-Free Retirement Issue for Retired Homeowners
“More than one million homeowners are using the equity in their homes to create the retirement of their dreams” [Pic of happy older couple] [Caption] xx and xx of xx have gone from barely getting by to enjoying their retirement and living life to the fullest.
Retirement looked rather grim for xx and xx of xx. They were looking at 20 or 30 years of scrimping just to get by. And the idea of taking a nice vacation… buying a new car… or even visiting their grandchildren was simply out of the question. But then they discovered how to turn the equity in their home into monthly income that gave them breathing room, peace of mind and the cash they needed to live well in retirement. See page three inside to discover the simple secret that the xx’s and more than a million other senior homeowners are using to transform their retirement for the better. Inside: √
Breakthrough Program: A unique mortgage that converts the equity in your home into monthly tax-free income . And you never make another house payment again!…see page xx inside
[insert picture of Fred Thompson] √
A special message from Senator Fred Thompson: How you can take advantage of the safe, effective financial tool that allows you to make the most of your retirement… see page xx inside
√
Bargains & Adventures: FREE book tells you how to save hundreds of dollars…see page xx inside [this will be a sidebar bullet, remove from this list]
√
#1 greatest problem facing senior homeowners: And a remarkable solution…see page xx inside
√
Worried about tomorrow’s bills? Here’s how you can restore your standard of living and live better than you might imagine…see page xx inside
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 14 of 37 √ 6 ways to safeguard your home from robbery: A security expert’s tips…see page xx inside √
And much more…!
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 15 of 37 Sidebars and Charts [Could replace pull quotes on page four] “A reverse mortgage credit line offers great flexibility. It can be used anytime, for any purpose, and it grows.” —Jack Guttentag, Professor of Finance Emeritus, formerly Jacob Safra Professor of International Banking, Wharton School and Chief of the Domestic Research Division, Federal Reserve Bank of New York [“Great Advantage” sidebar -- place on page five]
xx Advantages of a Reverse Mortgage √
You get guaranteed monthly tax-free* income for the rest of your life…
√
You never have to make another mortgage payment for as long as you live in your home…
√
You never owe more than the market value of your home…
√
You continue to own and live in your home and can do so for the rest of your life …
√
Tapping your home equity allows you to avoid using other assets such as your savings or your pension …
√
You can use the money for any purpose you choose…
√
You reduce your stress and give yourself more stability and security for a better retirement
[xx insert additional benefits]
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 16 of 37 [Social Security Benefits Estimator]
How a Reverse Mortgage can help you boost your Social Security benefits As you may know, the longer you postpone taking benefits from Social Security, the more money you receive each month. A Reverse Mortgage can help make this happen by providing you with monthly tax-free* “income”—possibly helping you delay taking your Social Security benefits. Take a look at the chart below for an example of how delaying your Social Security benefit can put significantly more money in your pocket down the road.
Social Security Benefits Estimator Age of Retirement
Estimated Monthly Benefit
62
$1,016.00
65
$1,265.00
68
$1,572.00
70
$1,789.00
Social Security benefits calculator from www.bankrate.com/calculator/retirement/social-security-benefitscalculator-aspx
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 17 of 37 [6 Surprising Strategies Sidebar]
Turning Your Retirement into a Dream: 6 Surprising Strategies You Can Use Now You’ve worked hard your whole life to build your retirement nest egg. However, for many, it might not be enough. Some are forced into living a pressure-filled, cash-short retirement, because they don’t have the money to pay bills or do the things they would like to do. But a reverse mortgage gives you the cash you need to live well and enjoy your retirement. Many financial advisers recommend one of the smartest strategies is to take advantage of a government-insured reverse mortgage. You simply convert a portion of your home’s equity into ready cash to supplement your existing retirement accounts, pensions, and social security. It’s kind of like your house is paying you back for all the years you’ve paid for it. Here are 6 surprising strategies you should consider, so you can get started turning your retirement into a dream:
Strategy #1: Avoid or minimize using your 401k, pensions, or retirement savings A reverse mortgage gives you the cash you need to fund your retirement - without having to touch your savings or investments. This allows your assets to grow over the long run, leaving you with an even bigger portfolio 10 or 20 years from now - instead of using all your money up now.
Strategy #2: Emergency funds for the unexpected With your reverse mortgage, you will have access to your extra money whenever you need it - 24 hours a day. You will be able to pay for elective medical procedures, fix a roof, pay for a new car - anything. You will have peace of mind that you will be able to pay for any unforeseen emergencies.
Strategy #3: Cash for special trips and events You could travel to places you always dreamed of... maybe go to Disneyland, or take that cruise you’ve always talked about. Your reverse mortgage would allow you to go visit your
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 18 of 37 grandchildren whenever you want, and you will have the cash for air travel. Plus, you will be able to book a hotel without worrying about how to pay for it.
Strategy #4: Money for the things you want With a reverse mortgage, you could finally purchase some of those extra things you’ve always wanted. For example, you could buy that camper, dine out with friends whenever you want, or go to a play or movie theater. You could even give nicer birthday presents to your family and friends...
Strategy #5: Pay off your mortgage, taxes or other large expenses A reverse mortgage gives you the freedom to pay off large expenses or other debts you may be worried about. You could catch up on taxes you owe, pay off credit cards, or make home improvements you’ve been putting off. And most importantly, you will never have to pay another mortgage payment for the rest of your life!
Strategy #6: You could double your social security income [insert chart on page 7 of the “Reverse mortgage retirement planner”] If you delay your social security payments from 62 to 63... or 64 to 65... or even until 70... you’ll get a lot more each month for social security. A reverse mortgage may give you the ability to delay your social security... and double your lifetime social security benefits. For example, if you are 62-years old, you are eligible to start receiving your lifetime social security benefit of $1,016 per month... But if you use this strategy and delay your social security benefits until age 70, you would receive $1,789.00 a month for life... almost double what you would’ve received at age 62. A reverse mortgage is a versatile, safe and effective strategy for you to have a great retirement. It’s a quick and effective way for you to lead a happy, healthier life. For more details on how this works, call Toll-Free 1-855-224-3520 to claim your FREE, no-obligation Reverse Mortgage Information Kit.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 19 of 37 [Second Home Purchase sidebar -- this is covered in the copy and may not be necessary]
How to Use a Reverse Mortgage to Buy Your Dream House or Second Home If you and your spouse have been thinking about downsizing your home and moving into a new dream home, then a reverse mortgage could be the perfect strategy for you... ... Or, maybe with the extra money you can get from a reverse mortgage, you could move to a place with better weather, get that condo by the lake or the ocean, or even move closer to the kids and grandchildren. With a reverse mortgage, you’ll have instant access to the extra money you need to live a more comfortable, worry-free retirement in the place you want... and you will eliminate your current mortgage payments forever. Here’s how you can buy your dream house or 2nd home with a reverse mortgage: First, you sell your current home and put the money aside as your look for your new home. When you find the new house you want to buy, you can use a portion of the money from your last house as a down payment on your new house. Next, you can use a reverse mortgage to finance the rest of your new home, and keep the rest of the money from your previous home. [insert graphics from page 12 and 13 of the red ‘Your Guide to Reverse Mortgages’] For example: Step One: You sell your existing home for $500,000. Step Two: You find a NEW home for $350,000 Step Three: Use $200,000 as a down payment. Step Four: Use $150,000 HECM to complete purchase And you still have $300,000 at your disposal and no monthly mortgage payments. [insert box] Here are some benefits of using your reverse mortgage to buy a new home: Right-size to a single-story or lower maintenance home
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 20 of 37 Buy a home closer to family and friends Lower your cost of living during retirement No monthly mortgage payments Make your money go farther by having less expense Live be a lake or ocean, in a state with less taxes [end box] Regardless of how long you live in the home or what happens to your home’s value, you only make one down payment towards the purchase, and then the house pays you, for the rest of your life. For more details on how this works, call Toll-Free 1-855-224-3520 to claim your FREE, no-obligation Reverse Mortgage Information Kit.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 21 of 37 [3 Common Myths Sidebar]
3 Common Myths About Reverse Mortgages Myth #1: I will lose my home ownership... NOT TRUE! You Remain the Homeowner! How does the process work? A reverse mortgage loan allows you to turn some of the equity in your home into cash. You will continue to live in your home, and yes... you retain ownership. Plus, you and will not be required to make any more monthly mortgage payments. Instead of repaying the loan monthly, the loan balance is repaid when all borrowers have left the home. You will be required to pay for property taxes, home insurance and home maintenance. Does the bank own my home? No. You own your home. You have the title. You are just borrowing against the value of the home. All these details and applications can be found in your FREE, no-obligation Reverse Mortgage Information Kit.
Myth #2: The Fees are Too High... NOT TRUE! Your Reverse Mortgage Costs are Regulated and Insured by HUD... You may be surprised to hear that today’s reverse mortgage has a variety of options. You may qualify for lower costs, and now there are many additional consumer protections in place to provide you and your family more confidence for your retirement security... ... and your origination fees are regulated by HUD, so you can be sure you are not being overcharged.
Myth #3: There is Too Much Personal Information Required NOT TRUE! You Only Submit Your Basic Contact Information... You need something that’s quick and easy to understand, and you don’t want to get involved in time-consuming paperwork. That’s why we make everything as simple as possible for you. You just fill out your name, e-mail, and telephone number. You will get all of your questions answered without wasting your
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 22 of 37 time on paperwork. It’s that easy! Discover if a Reverse Mortgage is the right move for you by claiming your FREE, noobligation Reverse Mortgage Information Kit. Just pick up the phone and call Toll-Free 1-855224-3520.
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[“Special Focus sidebar]
SPECIAL FOCUS
How much tax-free* “income” could you receive from a Reverse Mortgage ? Your Reverse Mortgage can be tailored to meet your needs. Your options include monthly income…a lump sum payout…and a line of credit you can draw on at any time. Here are two examples: EXAMPLE A: Based on a $xx home appraisal at age 75, here are three options OPTION #1
OPTION #2
OPTION #3
Monthly Income
$xx
$xx
$xx
One Lump Sum Payout
xx
xx
xx
Reserve Account
xx
xx
xx
EXAMPLE B: Based on a $xx home appraisal at age 75, here are three options OPTION #1
OPTION #2
OPTION #3
Monthly Income
$xx
$xx
$xx
One Lump Sum Payout
xx
xx
xx
Reserve Account
xx
xx
xx
This chart demonstrates how AAG’s Home Equity Conversion Mortgage works. Actual monies available to homeowner(s) may vary depending on individual circumstances. Option #1 is “monthly income only.” Option #2 is “monthly income and one immediate check,” and Option #3 is “monthly income, immediate check and reserve account.”
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 24 of 37 [Testimonial sidebar -- half page with pics]
How these savvy retirees found freedom from financial worry and stress—and made their retirements more comfortable “I was able to take a lot of worry out” “What I wanted to achieve was eliminating debt. It wasn’t a lot, but I wanted to streamline my living expenses and by doing so I was able to take a lot of worry out of what I will be doing financially in 10, 15 or 20 years from now.” —Chester A., Washington
“Made it possible for us to retire 10 years sooner!” “Not only did working with American Advisors Group to obtain a HECM for Purchase make it possible for us to retire ten years sooner than we thought we could, it allowed us to take advantage of a strong real estate market to obtain our dream home.” —Andy and Beatrice H., Florida
“One of the best decisions I have ever made…I am now debt free” “Getting a Reverse Mortgage was definitely one of the best decisions I have ever made. The peace of mind and flexibility the Reverse Mortgage offered me is immeasurable. The professionalism and friendly manner of your specialist was outstanding. He made me feel like I was your sole customer. I am now debt free thanks to my Reverse Mortgage.” —Danny W., Washington
“My husband and I are retired and enjoying life after many years of hard work” “After the stock market crashed, my husband and I were contemplating how to deal with our financial situation. The next day I called American Advisors Group to find out about the Reverse Mortgage program. The specialist at American Advisors Group was very professional and handled all my phone calls and answered all my questions. My skepticism disappeared and we decided a Reverse Mortgage was the right solution. Today, my husband and I are retired and enjoying life after many years of hard work. Thank you American Advisors Group for providing us with a more comfortable retirement.” —Maurine L., Oregon
“I was able to pay down my credit card debt, get my car repaired and make
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my home improvements” “I want to thank you for helping me obtain a Reverse Mortgage. It has been 3 months and now I have the peace of mind knowing that the money is here when I need it. I was able to pay down my credit card debt, get my car repaired and make my home improvements around the house. Thank you for being so helpful, answering every question I had, and making the process so professional and easy. —Ann E., Virginia
“Has truly given me a new outlook on life; one with higher quality and newfound peace” “I wanted to let you know how much I appreciate American Advisors Group. The Reverse Mortgage has truly given me a new outlook on life; one with higher quality and newfound peace. I now have the ability to reside at my home for the rest of my life. The Reverse Mortgage was certainly the right avenue for me! Thank you for giving me the power to handle any unforeseen issues without fear and worry.” —Michael S., New York
“Having the funds easily available gives me the power to handle unforeseen issues with grace and in stride” “Reverse Mortgage has truly given me a new leas on life. Having the funds easily available gives me the power to handle unforeseen issues with grace and in stride. American Advisors Group certainly has a good group of wonderful people representing them. My Advisor made the process both interesting and joyful. He was friendly and professional and had great patience. I can only say that I am so very pleased with the service American Advisors Group provided — just like I am grateful for my new-found freedom. Thank you very much. —G.L.S., Oregon Discover if a Reverse Mortgage is the right move for you by claiming your FREE, noobligation Reverse Mortgage Information Kit. Just pick up the phone and call Toll-Free 1-855224-3520.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 26 of 37 [Inflation sidebar] to be updated by Ben or Courtney
How much is inflation costing you? Here’s what items in Los Angeles, California cost 25 years ago and what they cost now… Item
1990
2015
New Home
$479,000
$875,000
New Car
$16,000
$29,215
$24
$44
$1.70
$3.10
Ticket to Movies
$7
$13
One Pair Woman’s Shoes
$62
$113
One Pound of Coffee
$2.90
$5.29
Bottle of Pain Reliever
$3.60
$6.57
Ticket to Concert Loaf of Bread
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[“If you are retired” sidebar]
If you’re a retired homeowner, you don’t have many options to get the money you need
Go back to work…
You can rejoin the workforce, and give up some of your retirement dreams.
Sell your home and move to small apartment…
You must move, and give up the comfort of the home you’ve lived in for years.
Typical home equity loan…
You must show proof of income to quality for a loan and make monthly payments
Borrow from the children…
Even if they have the money, this may cause a strain in your relationships.
Tap further into life savings…
With economic uncertainty, you may run out of money.
Reverse Mortgage …
Regular tax-free* “income,” no monthly payments, you continue to own and live in your home. It’s easier than you think to get $100,000, $200,000 $300,000 or more tax-free*. For more information on AAG’s Reverse Mortgage , see page xx. Find out how you can receive your free, no-obligation Information Kit by calling Toll-Free 1-855-224-3520.
What have some homeowners done with their additional tax-free* “income” from Reverse Mortgage? [See page eight of magalog. Needs to be updated]
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[FAQ sidebar -- This will need to be trimmed down considerably]
xx answers to questions most folks ask about Reverse Mortgage When homeowners age 62 and older want to find out more about AAG’s unique Reverse Mortgage, here are some of the questions they most frequently ask. Q. Why should I select your Reverse Mortgage rather than a typical home equity loan or second mortgage? A: The main reason is that AAG’s Reverse Mortgage is much safer. Remember, traditional home equity credit lines and other forms of second mortgages require immediate payments to the bank. If borrowers miss payments, they could lose their homes. AAG’s Reverse Mortgage is totally different. You have no repayment obligation as long as you live in your home. Your loan is paid off, either by you or your estate, when you leave your home. Q. Will the lender, in this case AAG, ever take ownership of my home? A. No, you keep title and full ownership of your home. Q. I own my house, but I still owe on the mortgage. Can I still qualify? A. Yes. However, all existing debt on your home must be paid off first. AAG can provide you a lump sum advance to help you do just that. Q. My home is now worth about $200,000, but I don’t need as much monthly income as that would provide. Can I sign up and apply only part of my home’s value, say $100,000? A. Yes. You decide how much of your home’s value you want to apply towards the plan, as long as it’s more than $75,000. Q. How is the amount of the monthly advance determined? A. It is based on the current market value of your home and your age. Your specific situation can be evaluated by an AAG representative at a special meeting in your home. Q. Do I still have to pay a mortgage payment when I qualify? A. No! You could never pay a mortgage payment again. But there are a few obligations you’ll still have. Well tell you what they are. Q. Will a Reverse Mortgage affect my Social Security, Medicare or pension benefits? A. No, these benefits are not impacted. Reverse Mortgage funds are considered loan proceeds and not income. However, Medicaid and other income-based benefits* may possibly be
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 29 of 37 affected. One big benefit of taking a Reverse Mortgage is that it may make it possible for you to wait longer to access Social Security benefits. The longer you wait, the more you may receive. This is likely to boost your lifetime retirement income. Q. What if my credit score isn’t quite up to snuff? A. This shouldn’t be a problem. Q. Will the bank own my home or can my heirs inherit it? A. No. Reverse Mortgage borrowers retain ownership of their homes. You are not relinquishing title or ownership. You are simply borrowing against the equity you’ve built up in your home. A borrower may not lose their home under normal circumstances, as long as they comply with loan terms. Any equity in your home that is left over after you leave the home and pay back the loan belongs to you or your heirs. Q. What steps do I need to take to apply for a Reverse Mortgage? A. It’s surprisingly simple. Step One: Call AAG at 1-855-224-3520 and speak with one of our loan consultants. Step two: Go through government mandated counseling on the pros and cons of taking a HECM. Step three: Submit your application. Step four: Processing and approval. Step five: Closing. Q. If I never make a payment, how is the loan paid back? A. The loan is paid back after you leave the home and it is sold. I you or your heirs wish to keep the home after you’ve stopped living in it, you can use a conventional mortgage to pay back the loan. Q. Is a Reverse Mortgage insured? A. Yes, by the U.S. government’s Federal Housing Administration’s (FHA). Q. Exactly what is a Reverse Mortgage? A. We’ll tell all you want to know on page three of A Guide to Reverse Mortgages Q. How much money might I get? A. You’ll get the answer on page five. Q. What if the loan amount ends up more than the value of the home? Who will be responsible for the loan? A. Reverse Mortgages are non-recourse loans. This means that if the loan balance somehow
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 30 of 37 ends up surpassing the value of the home, the lender cannot collect more than the value of the home. Under the HECM program, the difference between the loan balance and the home value is covered by the Federal Housing Administration’s (FHA) insurance fund. Q. What happens to the family home? A. Borrowers may leave the home to loved ones as they wish, and heirs may still choose to sell or keep it after repaying the loan. Any remaining equity goes to the borrower or the borrower’s estate. Q. Can I lose my home? A. No, as long as you continue to pay your taxes and insurance and to maintain the home. Q. What happens if my spouse is under 62? A. The only age requirement is that the borrower be 62 or older. If your spouse is under age 62, they can continue to live in the home for as long as they wish. Q. A. Your FREE, no-obligation Reverse Mortgage Information Kit will include other common questions and answers. See page xx or call Toll Free 1-855-224-3520.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 31 of 37 [About AAG -- company profile sidebar]
A company you can trust American Advisors Group (AAG) is the number one Reverse Mortgage company in the nation, closing more such loans than any other company or organization. The company is an approved lender of the U.S. Department of Housing and Urban Development and is rated “A+” by the Better Business Bureau. AAG is also a member of the National Reverse Mortgage Lenders Association (NRMLA) And client surveys reveal that 97% of those who have done business with AAG are completely satisfied…98% would recommend an AAG Reverse Mortgage to a friend…and 84% say their lives have improved since obtaining an AAG Reverse Mortgage. [Visuals to include]
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 32 of 37 [Fred Thompson sidebar]
Fred Thompson Touts the many advantages of AAG’s Reverse Mortgages Former U.S. Senator and presidential candidate Fred Thompson is a longtime proponent of Reverse Mortgages. He’s also a spokesman for the nation’s #1 Reverse Mortgage lender, American Advisor’s Group (AAG). Senator Thompson calls Reverse Mortgages a “safe, effective, financial tool that allows retirees to make the most of their retirement by turning their own equity into tax-free cash — without any monthly mortgage payments. It’s money that you can use for anything, like paying off some bills.” He also points to how they allow retirees to get the money they need to live well, while still being able to stay in their own home when finances get tight. To learn more about the many benefits of a Reverse Mortgage, Senator Thompson recommends that potential borrowers get a FREE, no-obligation copy of American Advisor Group’s Information Kit, which includes three special reports and a DVD. See page xx to claim your free copy.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 33 of 37 [Cons sidebar -- in progress] Client mentioned that it’s important to cover some of the cons What happens if you don’t repay the loan, taxes, insurance, etc. Needs balance It’s not for you if you plan to move in the next few years, if you want to pass it on to your heirs. We need that balance to keep the regulators at bay. We can’t assume that you’re going to qualify. You may qualify. You may be able to. Retirees can get equity. Not you can get equity.
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 34 of 37 [Calculator sidebar -- in progress]
How much money could you qualify for? What is your home worth?
______
How much equity do you have in your home?
______
Multiply the equity in your home by xx%
______
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 35 of 37 Items we might still want to integrate [Some of this has been integrated in different ways] It’s easier than you think to get $100,000, $200,000 $300,000 or more tax free How does a Reverse Mortgage help my parents and me? (page 3 The Children and Caregivers Booklet) House payments you’ve been making have built up equity for you that you may unlock with a Reverse Mortgage. If you qualify, your current mortgage will be paid off right away. You can use the cash to pay off your other debts — and even make your retirement better. --Imagine the freedom and peace of mind that would give you. A really good way to unlock the equity in your home is through a Reverse Mortgage from AAG. If you’re age 62 or over and own your own home, you may qualify for this special type of loan. Best of all, it’s insured by the Federal Government — so you can retain ownership and possession of your home once you have the money (as long as it’s your primary residence and you maintain your other obligations.) --Over one million US homeowners, age 62 and over, have taken advantage of this FHAinsured loan to enjoy a more secure and comfortable retirement. --Start living a better life today --Your Information Kit includes three free guides and a CD narrated by former Presidential candidate Fred Thompson. The Kit tells you just about all you need to know about a Reverse Mortgage and answers these questions and more, when you qualify --People like the ease of process. People trust Fred Thompson Biggest overall fears: Fears: trust, bad deal, not understanding, takes too much time and paperwork
Biggest objections: losing home/scam, fees, cost of loan, am I getting the best deal? Government requirements and complicated contracts are the most irritating factors. People don’t want to get involved in time-consuming paperwork that’s hard to understand
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 36 of 37 From Your Guide to reverse mortgages Convert a portion of your home equity into tax-free money A reverse mortgage loan allows you to turn some of the equity in your home into cash to improve your lifestyle in whatever way you choose. You will continue to live in your home, retain ownership and will not be required to make any monthly mortgage payments during the loan period. Instead of repaying the loan monthly, the loan balance is repaid when all borrowers have left the home. You will be required to pay for property taxes, home insurance and home maintenance. You’ll have the flexibility to choose from one or more of these loan disbursement options: Lump sum payout, monthly installments, HECM Growing Line of Credit --Use a Reverse Mortgage for purchase loan to buy a home that better fits your needs (page 12 of guide) Reverse Mortgage Information for Children and Caregivers A reverse mortgage can… pay for in-home care services, reducing the need for expensive nursing homes and offering improved quality of care Fund in-home care, which can be ramped up as gradually or quickly as needed — from household chores to 24-hour nursing care Allow access to a stand by HECM reverse mortgage growing line of credit ready to help pay for unplanned expenses Flexible loan disbursement options: A lump sum payout: pay off large expenses or other debt Monthly payments: For a set period of time or for as long as you live in your home and comply with loan terms. A HECM growing line of credit: Access to funds when you need them --For couples, there is a 91% chance that one of them will require care The cost of senior care may range from $29,540 per year for in-home care to more than $94, 170 per year for convalescent care Reverse Mortgage Retirement Planner You can even convert your equity or your line of credit, at any time, to annuity style monthly payments for a period of time or for the rest of your life. Or build in additional security
C:¥Users¥user¥Desktop¥CDMG Portfolio¥AAG¥AAG8203_ML_RC2_082715_BJP.doc Page 37 of 37 as a rainy day account.
