It’s very gratifying to know that such an esteemed financial resource has published an article that supports the wisdom of using funds from a Reverse loan for retirement planning.
And it’s not just the Kiplinger Newsletter touting the benefits gained from using the FHA HECM loan for retirement options.
More publications such as the Huffington Post, the Wall Street Journal, the Financial Advisor Magazine and others are taking very serious considerations about their use to extend retirement funds.
Here is a copy of a summary of the Kiplinger article that was published a couple of weeks ago. I’m a bit behind on the Reverse loan loan, but here it is.
Kiplinger: Consider Reverse Mortgages in ‘Ramp-Up’ to Retirement
Posted ByJason OlivaOn March 10, 2016
“Reverse mortgages are becoming more synonymous with retirement planning as the mainstream media continues its coverage on how these financial products can help both retirees and pre-retirees.
The latest reportage from Kiplinger’s Personal Finance April 2016 features two stories on reverse mortgages and how they fit into retirement planning discussions.
Earlier this week, RMD guided readers to an article that spotlighted how rule changes over the past few years have enhanced the appeal of reverse mortgages for retirees. As a result of this “makeover,” Kiplinger said reverse mortgages can be a flexible source of retirement income.
In another article published this week, Kiplinger suggested using a reverse mortgage to tap into home equity as one possible “money move” for pre-retirees to ramp-up their retirements.
The article included several tips such as maxing out retirement accounts, creating a retirement budget, adequately preparing for long-term care, plotting a Social Security strategy and, last but not least, tapping into home equity.
Depending on a retiree’s situation or personal preference, Kiplinger suggests downsizing into a lower-cost home to cut housing costs in retirement. For those who would prefer to remain in their current home, a reverse mortgage might be the better solution.
“You may conclude that staying put is a better idea,” writes Jane Bennett Clark for Kiplinger’s Personal Finance, April 2016. “In that case, look into a reverse mortgage.”
“These deals, available to homeowners age 62 or older, give you access to home equity,” Clark adds. “The loan does not have to be repaid until the last surviving borrower dies, sells the house or moves out for at least 12 months.”’