I have found it to be so encouraging in that Financial Advisers and the industry in general are beginning to use a Reverse mortgage as part of retirement planning.
Almost every day, there is another positive article or professional study about the FHA loan and the recent changes to it, that it not only safer, but much more affordable as well. Plus the benefits of using it as part of a retirement plan.
Advisor Magazine published an article earlier this month, stating why Advisers need to become educated and open to their use in retirement planning for their clients who are near retirement, as a viable method of extending retirement funds.
The number 1 fear that just about everyone has, is running out of money as they age and unfortunately, far too many people are underfunded in their retirement plans and it’s important that Advisors are reasonably knowledgeable about the loan program, so that they may discuss it with their clients.
Having what could be called a “Stand By Reverse Loan” could possibly make a significant difference on how much money will be accessible for a someone after they retire and possibly reduce the worry of running out of funds to support one’s self.
I’m going to share part of a summary article in this post, with the remainder of it in a follow up post, due to it’s length. Plus I will also provide a link to the article itself in the event anyone one to read it in it’s entirety.
Advisor Magazine: Leverage Housing Wealth with Reverse Mortgages
Posted ByJason OlivaOn February 3, 2016 @ 6:54 pm In HECM,News,Retirement,Reverse Mortgage
“A slew of research and commentary in recent years have encouraged consumers as well as other financial professionals to take a fresh look at reverse mortgages, following the implementation of program changes such as the Financial Assessment, upfront draw limitations and updates to the non-borrowing spouse policy.
Furthermore, concerns that American retirees will fall woefully short of having enough savings to live on during retirement have also generated a keen interest among financial planners, retirement researchers and even a Nobel Laureate, to analyze how housing wealth could effectively fit into the equation for many retirees, according to the Advisor Magazine article written by reverse mortgage industry veteran Shelley Giordano.
Giordano, who also chairs the Funding Longevity Task Force, a group comprised of distinguished members of the financial planning community, writes that advisers who ignore the recent changes made to reverse mortgages “will fail to appreciate how the prudent use of housing wealth in the distribution phase can contribute to cash flow survival and even improve the overall bequest” for retirees and their heirs.”
Look for the remainder of the summary in my next post and be sure to contact me if you have any questions.