C4 Saturday, February 25, 2023 THE DAILY NEWS

MONEY MATTERS
FINANCIAL PLANNING GUIDE A guide to budgeting, planning, investing,
and reaching your financial goals

You have options to finance home improvements

By KORI SCIANDRA n Take out a personal the Prime rate, meaning as
[email protected] loan. For those who do not Prime rises or decreases, the
Renovating a home is a want to refinance, a person- borrower’s monthly pay-
great way to impart person- al loan or home improve- ments are subject to rise or
ality indoors and out. Im- ment loan can be good for decrease as well.”
provements can make spac- mid-sized projects, accord- The current Wall Street
es more livable and address ing to American Express. Journal Prime rate is 7.75
safety issues. Home renova- Personal loans for home percent.”
tions often take residents’ renovations typically re-
n Try a home equity
lifestyles into account, and quire no collateral and one’s
credit score determines the loan. Home equity loans use
changes can be customized
to accommodate a growing interest rate. the home as collateral like
family or an empty nest. n Utilize a home equity a HELOC. The home equity
No matter the job, home line of credit. A HELOC is a loan is an installment loan
improvements tend to be form of revolving credit, like for a fixed amount on a fixed
costly. According to the a credit card. Homeowners monthly schedule for a set
financial resource SoFi, on borrow against the credit term. These are sometimes
average, the cost to reno- line granted with the home called second mortgages.
vate or remodel a whole being the collateral. As a n No or low-interest
house runs between $10 person pays down what is credit card. Smaller proj-
and $60 per square foot. owed, he or she can borrow ects can be financed using
Certain rooms demand a more. This is a good idea credit cards. Many will offer
higher cost, with a kitchen for recurring or long-term introductory rates with no
or bathroom remodel cost- METRO CREATIVE CONNECTION home improvements. interest for a few months.
ing around $100 to $250 per “HELOCs are a great tool
Figuring out how to pay for the improvement project is as essential to the planning process as This is generally only prefer-
square foot due to electrical picking out materials and contractors. for home improvement
able if a person can pay off
and plumbing needs. Figur- projects. Once the balance is
Homeowners must decide if in less than three years,” market appreciation and/ paid in full, the line of credit the balance before interest
ing out how to pay for the is charged.
improvement project is as they want to go forward with Kennard said. “Funds can or a combination of both,” remains open for future use,
the project if they’re likely be used for anything, but said Kennard, who agrees it similar to a credit card,” These are the primary
essential to the planning
to get just a $33,000 return typically they are used for could be beneficial to refi- said Kennard. “A HELOC, or ways to finance home im-
process as picking out mate-
rials and contractors. when they choose to sell the home improvement, college nance your home to finance home equity line of credit, is provement projects when
The following are some home later on. expenses or significant pur- home improvement. a variable rate line of credit. costs exceed available cash
financial considerations and n Refinance the home chases. If the funds are used “Yes, it can be benefi- It is typically indexed to on hand.
financing options for home- mortgage. Homeowners for bona fide home improve- cial to refinance into a first
owners looking to renovate can use a cash-out mortgage ments, they may also be tax mortgage for home im-
their properties. refinance as a way to access deductible.” provements as well. First
n Consider if the invest- thousands of dollars for a A borrower should con- mortgage rates are typically
remodel. This taps into a sult with a tax advisor to
MONEY MATTERS
ment is worth it. Remod- lower than home equity
eling magazine routinely home’s equity. determine tax deductibility, rates,” said Kennard. “These
assesses common improve- “Home equity loans and said Kennard. transactions are referred to Ask me about the 100% Money Back Guarantee!
ments and how much lines enable a borrower to Keep in mind that the as ‘Cash-Out Refinances,’
homeowners can expect to leverage as much as 90 per- mortgage will then be a and generally the maximum CHERYL FAGAN
Licensed Real Estate Salesperson
recoup on the investment cent of their home’s equity new mortgage at the cur-
in its annual “Cost v. Value” as a fixed loan or variable rent interest rate and an
amount someone can bor- 81 Main St., Geneseo, NY 14454 Cheryl Fagan
row in these instances is up Cell: 585.703.2695
report. In 2022, a home- line of credit,” said Pamela outstanding balance higher to 80 percent of their home’s Office: 585.243.3811 • [email protected] • HowardHanna.com
owner spending $4,000 on Kennard, Five Star Bank and than what was the current equity.”
a garage door replacement Financial Institutions inves- one. Typically, 20% equity
recouped 93.3 percent of tor relations analyst. in the home is needed to re-
the investment, whereas “Most industry offerings finance.
adding a midrange bath- do not charge the borrower “Equity is acquired as a
room at $63,000 would only closing costs as long as the lien(s) on a property is paid
offer a 51.8 percent return. loan/line is not closed out down monthly, through

Curb appeal can

boost home prices Wills • Trusts • Health Care Proxies
• Power of Attorney • Probate
A joint study from researchers at
the University of Alabama and
• Real Estate • VA Pensions
Ankle, Foot, and Wound Care Centers of Western New York
the University of Texas at Arling-
ton found that curb appeal can
have a significant impact when Elder Law
selling a home.
with emphasis on asset protection
That study, which examined
Google Street View photos and & crisis planning
sales data from more than
88,000 properties, found that
homes with high curb appeal
sold for an average of 7% more
than similar homes with less
Stephen M. Kelley, Esq.
inviting exteriors. The study Attorney at Law
also revealed that, in slow
markets with greater housing
inventory, homes with high curb
appeal sold for as much as 14
percent more than homes with
uninviting exteriors.
131 Main St. • Suite 7 - Side Entrance
PO Box 278 • Geneseo, NY 14454 585-297-9761 A
Easy Online
Appointments
Homes defined as having high
curb appeal for the study includ-
PHONE 585-519-4387
FAX 585-519-4419
AnkleAndFootCentersOfWesternNewYork.com
AnkleAndFootCentersOfWestern
ed those with features including Heel Pain • Bunions • Hammertoes • Neuroma • Bone Spurs • Fractures of the Foot and Ankle • Diabetic Foot Care
well-maintained lawns and pro-
[email protected] Orthotics • Ingrown Nail • Reconstruction of the Diabetic Foot and Ankle • In-Office Ankle Arthroscopic Procedures
fessional landscaping. PRP INJECTIONS FOR CHRONIC FOOT AND ANKLE PAIN • Shock wave therapy for heel pain
 THE DAILY NEWS Saturday, February 25, 2023 C5

MONEY MATTERS
FINANCIAL PLANNING GUIDE A guide to budgeting, planning, investing,
and reaching your financial goals

Money management tips for retirees ‘ Making contributions to a retirement plan each

By KORI SCIANDRA
[email protected]
property taxes. If moving is
not a consideration, discuss
improve their financial well-
being in retirement.
expenses in retirement. And
health care costs are just one
pay period is a good way to lower taxable income.
BEN GUERRERA, owner Padget Business Services ’
What constitutes a per- a reverse mortgage with a fi- n Stick to a budget during of many expenses retirees
fect retirement is different nancial advisor. retirement. The U.S. Depart- can expect to have. Budgeting
for everyone. Some people “There is usually a 10% ment of Health and Human and avoiding overspending
may imagine spending their IRS penalty for withdraw- Services reports that roughly can ensure retirees have the
golden years fishing their ing money from a traditional 70 percent of individuals money they need when they
days away, while others may retirement plan (includ- who turn 65 will need long- need it.
aspire to finally embrace their ing 401(k) and 403(b) prior term care in their lifetimes. No one wants to outlive
inner globetrotter. Though to reaching the age of 59 ½. That’s just one expense re- their money in retirement.
individuals’ retirement There are some exceptions to tirees must budget for, and Various strategies can help
dreams differ, every retiree this rule, but not too many,” it’s more sizable than some retirees effectively manage
will need money, which only said Guerrera. people may recognize. The their money so they can en-
underscores the importance A trusted financial advisor Fidelity Retiree Health Care joy their golden years without Ameriprise Financial Services, LLC • 113 Main St., Batavia, NY 14020
of a wise and disciplined ap- can highlight the advantages Cost Estimate found that the having to worry about their 585-343-4551 • Toll Free: 800-847-2332 • [email protected]
proach to money manage- and disadvantages of reverse average retired couple age finances.
ment. mortgages, which are a great 65 in 2022 will need roughly
Average life expectancies option for some people to $315,000 to cover health care
have risen considerably over
the last several decades. Ac-
cording to estimates from the
United Nations Population
Division, the average life ex-
pectancy is slightly more than
79 in the United States. The
rise is a welcome sign, but 84 Avon Geneseo Rd.,
they may inspire a little fear Geneseo, NY 14454
among seniors who are con- Cell: 585-737-7420
Office: 585-243-2643
cerned that they might out- John Wallin
Fax: 585-243-1838
live their money. [email protected] Assoc. Broker
No one knows how long www.abcolerealestate.com 585-737-7420
they will live, but everyone
can embrace a handful of
money management strate-
gies to increase the chances
that they won’t feel a finan- 77 Years in Business “IT’S WHAT WE DO”
cial pinch in retirement.
n Study up on the tax im-
Trusted. Reliable.
plications of withdrawing Professional.
from your retirement ac- 84 Avon-Geneseo Rd. Geneseo, NY 14454 Richard Wendt, President
counts. Every retirement in- Cell: 585-747-2108 RESIDENTIAL • COMMERCIAL • INDUSTRIAL • AGRICULTURAL Fully Insured & Free Estimates
vestment vehicle, whether Office: 585-243-2643
it’s an IRA or a 401(k), has tax Fax: 585-243-1838 Marie Beikirch 128 Cedar St. Batavia, NY • 585-343-2400 / 585-356-4300
implications. Money with- [email protected] Lic. R.E. Salesperson
drawn too early may incur tax www.abcolerealestate.com 585-747-2108 RAHAITZ.COM
penalties, and even money
withdrawn long past retire-
ment age could elevate retir-
ees into a new tax bracket that
could prove costly.
“I recommend saving for
retirement as soon as pos-
sible if you have the money
to do so. Most employers al-
low their employees to con-
tribute a percentage of their
gross pay to a 401(k) or 403(b)
retirement plan. Also, making
contributions to a retirement
plan each pay period is a good
way to lower your taxable in-
come. There are retirement
plans for the self-employed
as well, such as a SEP or SIM-
PLE IRA,” said Ben Guerrera
EA and owner of Padget Busi-
ness Services.
A financial advisor can help
retirees determine the tax
implications of withdrawing
money from their retirement
accounts and may even de-
velop a detailed guideline of
when withdrawals should be
made and how much should
be withdrawn in a given year
in order to minimize tax li-
abilities.
n Prioritize your own
needs. Though retirees, par-
ticularly those with children
and grandchildren, may feel
an obligation to help their
families in difficult financial
times, generosity can be very
costly for adults who have
stopped working. Retirees
may or may not have oppor-
tunities to generate new in-
come, and even those who
do likely won’t make enough
to meet their daily financial
needs. Given that reality, re-
tirees must prioritize their
own financial needs, includ-
ing their immediate needs
and those they will have for
the rest of their lives. Though
it might be difficult to turn
down loved ones’ requests for
financial help, retirees must
make sure they can pay their
bills and maintain a quality
of life that won’t jeopardize
their long-term health.
n Examine your housing
situation. Equity in a home
is a feather in the cap of many
retirees. Retirees who own
their homes and live in lo-
cations with high property
taxes might be able to cash
in on their equity by selling
their homes and downsizing
to a smaller home with lower