What is the Number One Fear of Aging Americans?

The number one fear of aging Americans is outliving their money. This according to Robert Kiyosaki in his Best selling book “Rich Dad Poor Dad”. Kiyosaki explains that the current economic model is not designed to provide retirement for the poor and middle class. As a result more and more baby boomers are reaching retirement and realizing they are about to get hit by a financial bus.

Jack Guttentag of Forbes wrote earlier this year that “the Median Net worth of retirees aged 65-74 was only $266,000 in 2019, of which $240,000 was in their homes.” Imagine, you’re retiring today, you plan to live another 20+ years and you’re going to do so with $26,000 in the bank and a social security check which last year averaged $1562.

Now can you see why the number one fear of aging Americans is outliving their money?

Why Financial Planners Love and Support Home Equity Conversion Mortgages.

Home Equity Conversion Mortgages are designed specifically to help retirees to use the equity in their home to improve their life and finances. Below are specific benefits that help financial planners to assist their clients in extending retirement assets and income in order to live better for longer.

  • HECM’s dramatically reduce expenses:
    • *HECM’s Eliminate a Monthly Mortgage payment. Mortgages are generally the highest expense for most households. Eliminating a mortgage payment could save $500-$2500 or more a month in payments.
    • HECM’s can Consolidate Debts. Consumer debt for Credit Cards, Cars, and other toys can be consolidated into a HECM to save thousands every month in payments.
  • Emergency Funds/Reserves: Life happens. A HECM protects retirement investments by offering a flexible line of credit to access home equity that is a Tax Free Asset.
  • Reduced Draws of Retirement Funds: By eliminating expenses and providing alternative asset sources, retirees will draw much less from their retirement accounts. This allows retirement assets to continue growing in order to last much longer.
  • Ability to invest in additional products:  Life and plans are constantly changing in retirement. The addition of supportive retirement products could dramatically improve the longevity and efficiency of any financial plan. Additional cash/income from a HECM could provide the option to buy things like life insurances, annuities, long term care, estate planning, IRA’s, etc.

Home Equity Conversion Mortgages help people to do more in retirement and stretch assets further. They are a life changing addition to any plan which is why financial planners love them.

*Homeowner is always responsible to pay property expenses like Taxes and Insurance.

Trevor Carlson

President – Reverse Mortgage Specialist

Heritage Reverse Mortgage




Heritage NMLS #1497455 Trevor’s NMLS #: 267962

1060 South Main Street Bldg. A Suite 101B

St George Utah 84770