Financial Planning & Reverse Mortgages

Here is part 2 of an article that was published in Reverse Mortgage Daily, discussing how more Financial Advisors are beginning to look at the Reverse loan as an additional method of managing their client’s investments from being drawn down.
“Statements from those like Evensky, who are highly regarded in the financial planning community, have the potential to reach an largely untapped market. And some lenders may already be seeing an immediate benefit.

“We have already begun to market to the younger demographic, and this article has strengthened our message,” says Mike Gruly of 1st Financial Reverse Mortgages. ”The fact that the message comes from a respected member of the financial planning industry instead of the lending industry itself attracts more serious listeners, and is creating more serious dialogue.”

The dialogue is something originators have long worked toward, but have seen little success with as recently as late 2011.

Numerous financial planners told RMD in September [3] that they either didn’t know enough about reverse mortgages to recommend them to their clients, or that outdated information about reverse mortgages was drawing them against the loans as a retirement tool.

Today, however, the conversation has a different tune as originators have research with data to back up the idea of marketing to younger borrowers who have greater savings and higher home equity.

“This offers different possiblities but for a different customer, and a customer who might be amendable to a financial planner,” financial columnist Scott Burns told RMD after writing about the Sacks and Sacks research.

The Saver is a win-win for retirees, Evensky told Financial Advisor magazine.

“When markets regain their strength, the mortgage can be paid back,” Evensky told Financial Advisor magazine. “Our studies indicate this will significantly increase the survivability of the portfolio in retirement.”

Written by Elizabeth Ecker [4]

 

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