Why Reverse Mortgages Are Worth A Closer Look!

It was once thought to be a “risky” retirement strategy. But now tapping into your home’s equity with a “line of credit” tied to a reverse mortgage, might be the smart choice for many retirees.

Until recently reverse mortgages were thought of by many financial planners and advisors as a retirement strategy of “last resort” due to it’s previous high loan cost and potential for adding an unnecessary risk in comparison to other sources of income. But now with the implementation of many government safeguards and a reduction in pricing, a line of credit tied to a reverse mortgage is quickly becoming a retirement “tool of choice” for many financial professionals and retirees.

Pete Woodring, a founding parter in a wealth building financial firm in San Francisco, was at one time such a sceptic. But in a recent issue of the “Kiplinger” report, Mr. Woodring is quoted as stating “I’ve since reconsidered my bias against reverse mortgages and now view them as a viable tool in the context of a holistic retirement income plan in certain situations”. (Read the entire article here)

One of the advantages of a reverse mortgage line of credit, is that considering the risks facing all retirees who rely on their own capital as a source of lifetime income, it would be foolish not to consider one of their largest sources of wealth, their home, as an intricate part of any retirement income plan, even if the line of credit was never needed.

And finally, research now shows that responsible use of a reverse mortgage can increase both sustainable withdrawal rate and the net legacy available for heirs.

Do you want to learn more about a reverse mortgage line of credit? Click Here to request your FREE workbook; A Reverse Mortgage Self-Evaluation: A Checklist of Key Considerations.  

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