How a Reverse Mortgage protects retirement assets

Did you know a Reverse Mortgage protects retirement assets? Often when I’m meeting with clients for the first time to discuss a Reverse Mortgage the client is most concerned with what a Reverse Mortgage will do to the equity of their home. My job is to help them expand their vision to consider all of their assets and see how a Reverse Mortgage will let them keep their home without having to make regular mortgage payments and go a step further to protect the other retirement assets that are essential to their survival after leaving the workforce.

Cash Flow Survival is the key to every retirement portfolio. Your primary question is or should be, how much money is needed to survive financially until you and your spouse pass away. The problem is we don’t know if we’ll live to be 72 or 102 and we are even less capable of predicting what the market will do to our assets between now and then. So, it is important to be conservative and utilize all of our resources to stretch them out as long as possible.

With the current turmoil in the world’s markets, many are once again concerned about the security of their hard-earned money. It is times like these that make a Reverse Mortgage a powerful tool.

When the markets fell apart eight years ago, thousands of retirees were devastated with a 40-50% drop in their retirement portfolio just as they began drawing the money to meet their needs. But imagine what would have happened if they had taken out a Reverse Mortgage in 2006, they would have had the ability to live off the proceeds of their reverse mortgage while allowing the stock market to recover. Today that person would not only be living in a home payment free but their retirement portfolio would still be fully intact and would have more than doubled in value based on market growth since the market bottomed out in 2009.

These are some of the features that make a Reverse Mortgage such a great retirement tool:
  • With a Reverse Mortgage, there is no mortgage payment. You pay only the standard property expenses such as taxes, insurance, and HOA’s.
  • The money you take out of your home to live on is non-taxable.
  • The home value associated with the mortgage is set at closing so the mortgage cannot change with fluctuating market values.
  • With a Line of Credit, you only draw money on the mortgage when you need it.

Since Donald Trump won the bid for President of the United States the stock market has hit record highs something like 14 times. Analysts are predicting the Dow Jones index will overtake 20,000 before the end of the month. It is exciting to imagine a future where all we do is go up but let’s not be foolish enough to think this can go on forever. At some point, the stock market will need to correct and those who are prepared for such a correction will come out on top while those who are not prepared could lose big as we’ve seen before. Now is the time to consider a Reverse Mortgage to protect your retirement funds from the next market correction.

If you or someone you love is considering a HECM Reverse Mortgage give me a call to answer your questions and explore your options.

Trevor Carlson

HECM Reverse Mortgage Specialist

Heritage Reverse Mortgage?????

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