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…
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…
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…
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…
The Biggest Expense in Retirement According to the Consumer Finance Protection Bureau, more people are carrying mortgage debt into their retirement years with some studies estimating that 50-68% of new retirees will have some sort of loan payment. Current retirees aren’t much better off. For those 75 and older, housing expenses account for 43% of spending. When… Read More…
Meet Jim and Carol Married Couple (73/71) | Home Value $425,000 | $32,000 Outstanding HeLOC Balance IRA’s/Savings $312,000 | Social Security $2900/month | Pension $1410/month Jim and Carol pull $795 from their savings every month to supplement their income from Social Security and his pension. Retirement Concerns Jim and Carol’s advisor discerned their primary concerns based on a strategic… Read More…
Sometimes the proceeds from a reverse mortgage are not enough to pay off the existing mortgage obligations (which is a requirement). Many advisors and clients are tempted to dismiss the reverse mortgage at this point, but that could be an opportunity lost. Something About Mary Let’s take a look at Mary’s situation, and see what… Read More…
Volatility and Retirement Income Planning Market volatility is on the minds of many baby boomers at or nearing retirement, and for good reason. You already know that a significant setback in the market is a dangerous way to begin retirement. A recent article listed four strategies that could make coping with ongoing volatility less stressful… Read More…
How Is Ash Brokerage Using Housing Wealth? If given the choice between a 26% portfolio failure rate and a 2% failure rate, which would your clients choose? Ash Brokerage’s new Journey Guide Pro software ran thousands of retirement portfolio simulations. Some used a traditional systematic withdraw–on average ending with a 26% failure rate. That means one out… Read More…
Shifting Landscape Below is a real question posted to the Financial Planning Association’s (FPA) forum page along with six advisor responses. The names have been changed, but the replies are accurate. The Question Hello all, I’d like feedback from planners who have used a reverse mortgage as an income source for clients… I have a… Read More…
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