This is a rather long title for a new designation for Financial planners, but apparently many of them are seeking to become educated on how to use a reverse loan for retirement planning.
Needless to say, many Advisors refuse to acknowledge the benefits of using funds from a reverse loan, instead of drawing down on a retirement portfolio, but more are becoming open to the suggestion that there are benefits to be had to their clients by using this option.
And article was recently published discussing this new certification and how quickly many financial advisors are undergoing the education to qualify for it’s designation that will “brand” them as current on financial matter and innovative and open to new ideas in retirement planning.
Program Teaches Financial Planners Strategic Use of Reverse Mortgages.
May 20, 2015
A growing number of financial advisors have looked to new designation programs to better guide retirees on how to plan for retirement.
One such program, which teaches advisors about the strategic use of reverse mortgages, has grown in popularity since springing up three years ago — perhaps because of its uniqueness.
The Retirement Income Certified Professional (RICP) designation became the fastest-growing financial advisor credential ever launched in The American College of Financial Services’ 88-year history, according to a recent article on ThinkAdvisor, which notes that some 1,500 financial planners have completed the program, and another 7,000 are currently enrolled.
“The program was designed specifically to address retirement income planning,” said David A. Littell, RICP Retirement Income program director at The New York Center for Retirement Income at the college. “We thought that was what advisors needed. That is what they were asking for. That is what the industry was looking for.”
Written by Emily Study
I will post the remainder of the article tomorrow.
With all of the changes taken into consideration over the last twelve months, Reverse loans are gradually becoming a very acceptable option to extend retirement savings and as a tool for financial planning.
Costs are down and options for the consumer have increased, including a new Jumbo loan for those properties that are considered to be “high value” and need more funds than the traditional HECM can provide to the borrower.
A writer with the New York Times newspaper, recently had his article published about why everyone needs to know more about the loan and regardless of what they may think about them ( which is generally incorrect), they are here to stay and they will have a positive effect moving forward for people who wish to stay in their homes and preserve what retirement funds they do happen to have and to cover the medical expenses of aging.
I will re post the summary article in two parts.
NY Times: Reverse Mortgage Time is Coming
Posted By Elizabeth Ecker On September 28, 2014 @ 11:30 am In News,Reverse Mortgage | No Comments
“The time is coming for reverse mortgage loans, like it or not, writes the New York Times’ Ron Lieber in an article  this week.
“It’s been fascinating to watch the reverse mortgage industry grow up — or try to — in recent years,” he says, noting reverse mortgage naysayers who have written in response to past New York Times articles on the products.
But reverse mortgages will, and must, play a role in the retirement of many, Lieber writes, even if those many are not the typical readers of the publication for which he writes.”
“These are easy [critiques to make] when you have enough savings or pension and Social Security income to get by,” he says. “But given that older Americans’ homes are worth, on average, more than their other combined savings, there is a begrudging inevitability about reverse mortgages. As more people enter retirement in the coming decades with modest savings and no private pension, they’re going to need some of that home equity back during their increasingly long lives.”
The rest of the summary article will be in my next post.