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Reverse Mortgage Question Answered

Posted on 11/16/2009 by |Archived Contributor | Comments

Money & Savings Print Print

There is plenty of useful information for you in the Wall Street Journal’s online “Ask Encore” page from this weekend. First, AARP provides the answer to a reader’s question on reverse mortgages: why aren’t the interest charges and fees on reverse mortgages tax deductible? According to the answer from AARP, it’s because with a reverse mortgage, the “actual payment” doesn’t happen until the borrower sells their home or dies – so the borrower cannot claim a tax deduction until that point. Check out the page – the WSJ also tackles questions this week on Roth IRAs and inheritances.
From CNNMoney.com today, there is an article bringing a “little-noticed” proposal to light – one that would set aside $8 million for states to help protect seniors who are buying complex investment products. States would get money to investigate and prosecute fraud against seniors and would target annuities, which are “contracts in which customers pay a lump sum upfront in exchange for monthly income over time.” Read the article on CNNMoney for all the lowdown.
Finally – one more story from the WSJ. This one focuses on the “Medicare maze” and directs you to tools that can help you figure out what coverage is best for you. Some of the tools cost money while others are free, and the article points you to AARP’s Doughnut Hole Calculator to figure out if a drug plan will leave you in the “doughnut hole” gap in coverage.