Barry H. Sacks, J.D., Ph.D., is a practicing tax attorney in San Francisco, California. He has specialized in pension-related legal matters since 1973 and has published numerous articles in legal journals.
Barry Sacks, Ph.D. and Stephen Sacks, Ph.D. shared their analysis of the reverse mortgage credit line in the Journal of Financial Planning. The research does not attempt to market the program; instead it simply states the findings. The researchers recommend three strategies for using the funds from a reverse mortgage credit line to increase the safe maximum initial rate of retirement withdrawals.
Sacks and Sacks reveal that the idea of using a reverse mortgage credit line as a last resort is a passive approach and drawing upon the reverse mortgage credit before other investments, the retiree’s portfolio plus home equity net worth after 30 years is about twice as likely to be greater compared to the passive approach.
This information may not be new, however it is exciting that financial planners are paying attention to reverse mortgages and are seeing the benefits.