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  • The Reverse Mortgage Tenure Payment as an Annuity Alternative? Dr. Wade Pfau Weighs In

    An Interview with Dr. Wade Pfau My good friend and colleague, Dr. Wade Pfau, recently released an article in Forbes detailing how the tenure payment can be used as an alternative to purchasing an income annuity. This reverse mortgage monthly payment “annuitizes” the clients’ housing wealth in place of another financial asset. We also discussed it Read More…

  • {Case Study} How One Couple Purchased Their Retirement Dream Home and Added $50,000+ to Savings

    Meet Tom and Jane Married Couple (71/71) | Current Home Value $500,000 | Outstanding Mortgage Balance $175,000 ($1279/month) IRA’s/Savings $540,000 | Social Security $3,200/month | Pension $705/month Retirement Concerns Tom and Jane’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 concerns Read More…

  • Five Common Reverse Mortgage Questions in Four Minutes

    Common Advisor Questions I’ve compiled the answers to five common questions I receive from advisors (and their clients). What does “non-recourse” mean? Since the HECM reverse mortgage is an FHA insured, non-recourse loan, the lender’s ONLY “recourse” is the net proceeds from the sale of the home, even if the client owes more than the Read More…

  • Mitigating Sequence Risk – One Simple Strategy Every Advisor Should Know

    Retirement Risks The market goes up; the market goes down. The television analyst says we’re in for a prolonged season of increasing gains, while a leading financial journal says we are now entering a time where market losses will be the norm versus the exception. The idea of volatility, another market correction or a prolonged Read More…

  • Why Did FINRA Change Course on Reverse Mortgages as a Last Resort?

    The Compelling Research that Helped Change FINRA’s Position In 2008 FINRA issued an investor alert cautioning borrowers against reverse mortgages and suggesting they only be used as a last resort. In 2013, one notable research paper, “Reversing the Conventional Wisdom: Using Home Equity to Supplement Retirement Income” (Barry H. Sacks, J.D., Ph.D. and Stephen R. Sacks, Read More…

  • The Financial Planning Elephant Advisors Aren’t Acknowledging – Review of Jamie Hopkins’ Article

    In last month’s edition of Advisor News, my good friend, Jamie Hopkins, Director of Retirement Research at Carson Wealth, addressed a very important subject: incorporating home equity in retirement income conversations. I really don’t have much of a review because the article was spot-on and straight to the point. Here are a few highlights from Read More…

  • How Are Advisors Compensated for Their Housing Wealth Know-How?

    Three Questions to Determine Value I recently received an email from a financial  wholesaler  who didn’t believe that reverse  mortgages had any practical value for the advisors his team served. As you may have gathered, I often find questions to be a more powerful tool than simply spelling out the answer, so I responded with Read More…

  • {Case Study} How One Retiree Improved Tax Efficiency and Preserved Portfolio Savings through Housing Wealth

    Client Scenario  Susan, age 74, is a widow living in the foothills. She owns a home worth $385,000 that is free and clear. Monthly cash flow is tight living on a fixed income, and longevity runs in her family. Assets: $297,000 in stocks, mutual funds and IRA Social Security: $1278/month Pension: $815/month Distributions: RMD’s total $3700/year but withdrawing $7000/year, Read More…

  • Seven Housing Wealth Strategies that Benefit Women

    The financial and retirement planning concerns of women are very different from those of men.  A cursory internet search will reveal that: Women are less likely to have planned or saved enough for retirement (primarily because they spent few years in the work force, made less when they did and often left early to take care of Read More…

  • Why Open a Reverse Mortgage Before It Is Actually Needed? – Dr. Wade Pfau

    When Is the Best Time to Establish a HECM Line of Credit? In his recent Forbes article, Why Open A Reverse Mortgage Before It Is Actually Needed?, Dr. Wade Pfau makes a case for establishing a HECM line of credit early in retirement and allowing it to grow until it is needed.  Here’s the example he Read More…