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  • {Case Study} Can Clients “Upsize” with the HECM for Purchase?

    Last week, we looked at a case study in which the clients used the HECM for Purchase (H4P) to buy a home of lesser value, but what if they wanted to buy a more expensive home? Would the H4P still be a useful tool? Let’s take a look. {Case Study} How One Couple Downsized with Read More…

  • {Case Study} How One Couple Downsized with the HECM for Purchase and Added $226,000 to Savings

    Meet Bruce and Barbara Married Couple (65/65) | Current Home Value $525,000 | Outstanding Mortgage Balance $100,000 ($1000/month) IRA’s/Savings $405,000 | $24,000 Initial Withdrawal to Maintain Lifestyle Retirement Concerns Bruce and Barbara’s advisor discerned their primary concerns based on a strategic core framework I crafted–the 5 L’s. Longevity (Lo) | Lifestyle (Lf) | Liquidity (Lq) | Legacy (Lg) | Long Term Care (Lt) (These retirement Read More…

  • Can My Client Make a Monthly Payment?

    One of the most common uses of a reverse mortgage is to replace an existing loan (mortgage, HeLOC, etc.)–the primary benefit being the elimination of a mandatory monthly loan payment. However, some clients are quite comfortable making a monthly payment.  When this is the case, a little-known strategy that can have a huge impact on Read More…

  • {Case Study} How Eliminating a Mortgage Gave These Grandparents Retirement Security and the Lifestyle They Desired

    Client Scenario  Mike and Jenny (age 74/69) own a home worth $615,000 with a mortgage balance of $239,000 with 26 years remaining on the balance and a monthly payment of $1,310. Assets: $347,000 in IRA’s, mutual funds and savings. Social Security: $2780/month Pension: $1410/month Distributions: Taking RMD’s of $7300/year Goals | Concerns  Longevity Concerned about inflation and health care costs. Read More…

  • Can Social Security Be Delayed Using the Reverse Mortgage?

    The Power of a Monthly Payment Once a HECM reverse mortgage is initiated and the initial line of credit amount is determined, the clients may choose the tenure or term payment option. In the chart below, you will see an illustration of the initial line of credit and monthly tenure payment amounts based on three Read More…

  • 7 Ways to Incorporate Housing Wealth with a Million Dollar Client – Dr. Wade Pfau

    My good friend and colleague, Dr. Wade Pfau, conducted a research study using a Monte Carlo simulator 10,000 times to demonstrate the best and worst possible outcomes for a retiree with $1 million in tax-deferred assets, a home value of $500,000 and a 4% annual draw. Below is an explanation of his findings. (A 25 percent Read More…

  • How Does the HECM Reverse Mortgage Get Repaid?

    When I speak with advisors and their clients, one of the most common questions is, “How does repayment work?” Remember the four words that can put everyone at ease? It’s just a mortgage! Reverse mortgage repayment is pretty straightforward, and even has safeguards in place to protect the borrower and their families. Check out the 3-minute Read More…

  • What Happens When Reverse Mortgages Come Up at the Family Picnic? Four Words that May Help

    The Family Picnic Has this ever had this happened to you? You’re at a family gathering and someone mentions they’re thinking about getting a reverse mortgage. Some family members may sheepishly excuse themselves – sensing the approach of a conversation they’d rather avoid. A few will say, “I’ve heard about those,” and may be open Read More…

  • Are Traditional Retirement Income Strategies Enough?

    Three Major Retirement Problems for Baby Boomers If there’s one generation in recent history that has most dramatically changed the retirement planning game, it’s the baby boomers. They’re one of the most talked-about generations today, with a host of well-documented challenges facing them. Living Longer Instead of spanning 15 or 20 years, their retirement will Read More…

  • Seven Reverse Mortgage Concerns and the Unexpected Questions Advisors Should Be Asking

    Seven Reverse Mortgage Concerns In early 2017, after speaking at a large conference for advisors and following up with a routine email, I received this surprising response: “{Company Name} is an independent, registered investment advisory firm managing nest eggs for over 400 client families. We have done extensive research on the reverse mortgage business and Read More…