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 of four people would fail before their 20-year retirement was over. When the newly restructured reverse mortgage was incorporated, the failure rate dropped dramatically to 2%. [Hear how they incorporated it – go to 14:20 in the podcast]
We believe that every client deserves to have a retirement free of worry that they will run out of money.
These are the words Mike McGlothlin of Ash Brokerage opened our interview with. Mike and his team are equipping advisors to help their clients “retire more confidently.” And they’re doing it with the reverse mortgage.
[1:50] What has the growth of HECM strategy been like over the last 5 years?
[ 2:26] Recent restructuring to make program stronger
[3:30] What are the new underwriting requirements (age, home value, etc.)?
[3:50] Original intent for the program: sustain longer retirements
[4:20] Embraced by more affluent borrowers | Jumbo reverse mortgage
[5:15] Why are advisors incorporating the HECM in retirement income planning strategies?
[5:50] Ground-breaking research caused FINRA to reverse their “last resort” position
[6:45] Universities and financial institutions embrace the HECM
[7:35] Baby boomer retirement crisis
[8:40] How have advisors used the HECM to supplement retirement income?
[9:45] Three questions every advisor needs to answer
[11:15] Increasing cash flow by eliminating monthly mortgage payments
[11:40] Why a CEO with $5 million in AUM was considering a HECM
[13:10] HECM line of credit | Sequence risk of returns
[14:20] Ash Brokerage study | Non-correlated asset reduced failure rate to 2%
[15:25] Self-insure for long-term care costs
[17:40] Optionality | Convert to monthly payments
[19:10] Tax management with the HECM
[20:40] How does the HECM for Purchase eliminate debt servicing and allow clients to “RightSize?”
[21:50] HECM for Purchase definition and functionality