Stand By reverse mortgage

Reverse Loans and Retirement Planning

The NerdWallet recently discussed how more Financial Advisers are finally getting past their previous aversion to using a reverse loan for retirement planning and extend their client’s retirements fund’s longevity via using a “Standby” Reverse loan.

This change of view in the Retirement Planning community has taken a very, very long time.   But more Advisors are now open to using a Reverse loan as part of their client’s retirement planning.

Although there are still some Advisors who remain stuck in a old “mindset” that using one, depletes a clients’ estate.  And they refuse to even make an iota of effort to learn about how they can be so beneficial in preserving a retirement portfolio.

I occasionally will still encounter one of those “old dude” Advisors who refuse to get educated about the benefits of a reverse loan for their clients and quite often are rude to me!

In any event, here is a copy of part of the article from NerdWallet.

NerdWallet:  ‘Standby’ Reverse mortgage Good for Tapping Home Equity.

Posted by Alana Stramowski On June 22,2016

In the past, the general consensus among financial planners was that a reverse mortgage was a horrible option, but now with reverse mortgages being safer and cheaper than ever, people are changing their viewpoint and being more creative with the ways in which the product can be used, according to a recent article on NerdWallet.

For many people, their investment portfolio is one way they can secure their retirement funds, and protecting it is one of their top priorities. If someone is over 62, a standby reverse mortgage strategy may be one option to help protect their portfolio and help make sure that it lasts throughout retirement.

“Recent research indicated that reverse mortgage lines of credit offer an important safety valve in retirement,” writes personal finance columnist Liz Weston for NerdWallet. “When the stock market plummets, retirees can tap credit lines instead of their portfolios.”

This method also can help give a portfolio some time to recover when the market rises.

There are numerous ways tapping into home equity can benefit anyone getting near, or in retirement. Funding home improvements with home equity is also a way to help keep someone in their home as they age and significantly cut down on how much of their nest egg they would need to tap into, the article explains.

These are the times when borrowing against home equity can be a smart decision, but those who do need to be aware of all of the rates and terms of reverse mortgages before jumping in headfirst.

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