Enter Your Proposed Savings Plan and Other Factors Affecting Your Retirement
Return on Financial Assets: The average average annual money you make on your financial assets. The table below shows typical returns from 1926 - 2020 based on your allocation between fixed income and equities investments.
Fixed Income | 0% | 20% | 40% | 60% | 80% | 100% |
Equities | 100% | 80% | 60% | 40% | 20% | 0% |
Top 10% Annual Return | 17.28% | 15.40% | 13.82% | 12.51% | 11.07% | 9.59% |
Average Annual Return | 11.43% | 10.49% | 9.14% | 7.45% | 5.57% | 4.54% |
Bottom 10% Annual Return | 4.00% | 4.66% | 5.02% | 4.97% | 4.08% | 1.81% |
Home Value Appreciation: Over long periods, home values have appreciated about 4% a year, and this value is used by HUD in stipulating the withdrawal amounts on HECM reverse mortgages. Homeowners who have good reasons to believe that their home will appreciate faster or slower than the average can modify the appreciation entry accordingly.
Mortgage Payment: The amount you are currently obliged to pay monthly toward the principal and interest of your mortgage.
Mortgage Interest Rate: The current annual interest rate on your mortgage.
Cash Refund Option: If you select this option and you die before the total amount of the annuity payments you've received exceeds what you paid for the annuity, your heirs will receive the difference. For example, if you die during the annuity deferment period (i.e. before any payments have been made) your estate will receive back the total amount you paid for the annuity. Note that selecting this option will reduce the monthly annuity payments.
Deferment Period: The amount of time between when you purchase an annuity and when you begin to receive monthly payments from the annuity.
Need Help?
There are two ways you can receive help from The Mortgage Professor or one of his counselors. You can request someone to call you or you can send a question and someone will email you the answer.
Request a Call
Select from the available times:
... Loading Session Times...

Request an Email Response
Privacy Policy: Your phone number and email address will only be used to answer your question(s). You will not receive calls or emails from other parties and your personal information will not be sold or given to any other parties.