What are the top 10 reasons a Financial or Wealth advisor would recommend a reverse mortgage equity line of credit to their senior clients?
Here is my top 10 list.
- Replace cash reserves-used for emergencies or other unexpected expenses.
- Delay drawing Social Security payments and pension payouts – Supplement your clients monthly income until their 66th or 70th
- The Equity Line Loan Proceeds are not considered income and can be used as a tax-free income supplement.
- The Equity Line of credit can buffer spending of investments in a down market.
- Use the line of credit to cover unexpected gaps in medical coverage.
- Use proceeds to pay for Long-term care insurance and in-home nursing care.
- Eliminate monthly mortgage payments to increase monthly cash flow. (Clients continues to pay property taxes & Insurance)
- Provide a new way to diversify wealth.
- Use the Credit Line to purchase a new home and save the residual cash for other investments 3
- Enhance financial security without affecting some benefits such as Social Security or Medicare Benefits.
- Under the current and proposed tax plans under President Trump, the proceeds are tied to a real estate loan and in most cases are tax deduction.
While each Advisor knows the specific needs of his client, in most cases a reverse mortgage line of credit is a valuable instrument in the Advisor’s belt of financial tools.
If you think this article was of interest, share it!
Albert Jones / (626) 798-8300 x700
Albert@BabyBoomerLoans.com / NMLS#1001865