Abstract
How Reverse Mortgages Have Dramatically
Changed Retirement Income Planning
CFP #228168: PACE CE accredited for the following designations: CLU®, RICP®, ChFC®, CLF®, CASL®, ChSNC™, CAP®, FSCP®
Presented Don Graves, RICP®, adjunct Professor-the American College
and nationally recognized Home Equity Retirement Expert
Today’s Financial Advisor needs every legitimate tool available in order to meet their clients’ retirement goals as well as to maintain a long term viable practice. Reverse Mortgages have become one such tool! Historically, the financial services community has either simply dismissed the reverse mortgage or relegated it to use as a last resort. However, much has changed in the last few years, including FINRA themselves.
Buoyed by recent academic research and embraced by current financial thought leaders, today’s reverse mortgages have proven to substantially boost retirement outcomes when coordinated with other investment tools. There is now an evolving understanding of the Reverse Mortgage as a viable financial planning tool for all spheres of retirement situations. From the constrained borrower to the retiree entering retirement well-funded.
This workshop will explain how reverse mortgages work, review some of the recent research and practically demonstrate how advisors serving this demographic can increase their impact and grow their practice by understanding this new and vital tool. Some of the topics discussed:
- How Reverse Mortgages Can Eliminate the Most Powerful Risks to Retirement Income
- Why FINRA Changed their “Last Resort” Position
- The Seven Ways to Integrate Housing Wealth into Retirement Plans
- Why Some Believe the DOL Fiduciary Standard Ruling Directly Impacts What Advisors Need to Know About Reverse Mortgages
- How Reverse Mortgages Became a Strategic Lifetime Income Planning Resource
For many in the Boomer generation, to survive and thrive in retirement requires new thinking and a clear understanding of all the options open to retirees. And the question of the hour is simply “Is a Reverse Mortgage a Product of Last Resort or is it an Indispensable Retirement Income Planning Tool for Baby Boomers and Current Retirees?”
“Retirees simply cannot afford to continue to ignore home equity as an income source and still meet their retirement goals”
April 2016, CNBC“In addition to serving as a hedge against portfolio depletion, a standby reverse mortgage line of credit can serve as long-term-care insurance or a deferred annuity, using the home as collateral instead of paying insurance premiums. If you had dismissed reverse mortgages in the past, they’re worth a second look. Otherwise, you may be missing out on a crucial way to improve clients’ retirement security”
Dr. Wade Pfau, the American College“Advisors have a fiduciary responsibility to their clients. In no uncertain terms, this means that they must do what is in the best interest of their clients. If an advisor fails to become informed about the benefits of HECMs, they are failing at their fiduciary duty. By no means is a HECM right for every client, but every advisor worth their salt should have a cursory knowledge of the subject matter in order to, at a minimum, factor it out of their client’s equation.”
Dr. C.W. Copeland, Professor of Insurance, the American College