In my previous post, I shared part of a summary of an article that was recently published in Advisor Magazine. The gist of it was, that more Retirement Planners and Advisors need to become educated about the benefits of using a Reverse loan as an overall tool for retirement planning.
Far too often, most people are underfunded in their retirement plans and given that people are living much longer that previous generations, there is a very serious concern of the possibility of running of of funds to live comfortably and pay for any future caregiving if it is needed.
It’s a very good article and I’m happy to see that there is more positive news about the loans, especially since there have been recent changes put into place that make them more affordable and safer than any time in the past.
Here is the remainder of the summary, along with a link in the event anyone wants to read the entire article.
Advisor Magazine: Leverage Housing Wealth with Reverse Mortgages
Posted ByJason OlivaOn February 3, 2016 @ 6:54 pm In HECM,News,Retirement,Reverse Mortgage
“The article describes, for advisers, how reverse mortgages have changed in recent years, including the enhanced protections implemented via the Reverse Mortgage Stabilization Act of 2013, which forbid borrowers from using too much equity too soon.
Giordano also highlights why it is important for financial advisers to reconsider reverse mortgages today, especially in light of the recent Home Equity Conversion Mortgage program changes and the potential benefits that can be realized through the strategic use of a reverse mortgage line of credit.
“If the first impulse is to counsel clients to ‘wait’ until the portfolio is depleted before establishing a HECM Line of Credit, the adviser is giving out-dated advice,” Giordano writes. “Compliance officers who forbid conversations with clients on how a significant asset, the home, can improve retirement outcomes are not meeting appropriate standards of care”.