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  • How One Advisor Lost a Client Over a Very Simple Housing Wealth Question

    How to Potentially Lose a Client Earlier this year, an advisor friend called me to say that his client had just cussed him out over a reverse mortgage situation. Here’s what happened. Joe and Mary Johnson (age 65) had been clients of David Wilson, CFP for the last 15 years. He managed their money, sold Read More…

  • 7 Benefits of FHA Condo Approval: The Pros, Con’s and Common Misconceptions

    The 7 Benefits of FHA Condo Approval 1. FHA Condo Approval Dramatically Increases the Pool of Potential Buyers Statistics show that approximately 60% of new home buyers intend to use an FHA Loan. If your community does not have FHA condo approval, you potentially limit the buying pool to only 40% of home buyers. NOTE: Read More…

  • Dr. Wade Pfau – Six Strategies for Carrying a Mortgage Into Retirement

    Entering Retirement with Mortgage Debt – Planning Challenges More Americans are now entering retirement while still carrying a mortgage. In 2014, the Consumer Finance Protection Bureau reported that the percentage of Americans aged sixty-five and older with a mortgage rose from 22 percent in 2001 to 30 percent in 2011—a rise from 3.8 million to Read More…

  • Top 5 Most Frequently Asked Questions

    (1) Is My Client a Candidate for the Reverse Mortgage? The reverse mortgage is a federally-insured loan that allows homeowners age 62 and older to turn a portion of their home’s value into tax-free money without making monthly payments or giving up ownership of the home. As a rule of thumb, clients should have about Read More…

  • {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…