Two Things the NEW Reverse Mortgage Can Do to Dramatically Change a Clients Retirement

Most baby retiring boomers are concerned with one thing.

Will I have enough money to enjoy ALL of my Retirement! 

We see this all over commercials we see on television these days?

“How Long will your Retirement Savings Last”
“How Much Do you Think you Need for Retirement”

Below is an example of two ways a Reverse Mortgage Can Help Answer that Question.

PROFILEA 62 year married couple wants to retire.
But is concerned that their modest portfolio of $250,000 may not be enough for all of their years.
They have a certain lifestyle they want to maintain, but would love a little more certainty.

ASSUMPTIONS: The client will be drawing $2500 per month from savings; this will adjust by 4% year. Their return is 6% each year.

SCENARIO: Here are two changes that if made would have the same outcome:

(1) Eliminating a Monthly Mortgage Payment they Have of $570 a month (or)
(2) Adding a HECM Reverse Mortgage Monthly Tenure payment of $570

Both of these reduce the draw on Savings, so they don’t have to draw out as much per month.  And the IMPACT!

IMPACT: All Things being Equal, their
Retirement Savings last 10 ADDITIONAL YEARS!

250k Waterfall Comparsion

The Reverse Mortgage has changed dramatically with regards as its usage as a tool for advisors to help more of their clients.  It certainly is not always the answer or the conclusion, but it should be part of the Conversation.

We have used this analysis with portfolios up to $2 million.  See below and HERE for that Article and click below to watch the 2 minute video.



Don Graves, RICP®, CLTC®, Certified Senior Advisor, CSA®
Don Graves, RICP® is a Retirement Income Certified Professional and one of the Nation’s Leading Educators on the Emerging Role of Reverse Mortgages in Retirement Income Planning. He is president and founder of the HECM Institute for Housing Wealth Studies and an adjunct professor of Retirement Income at The American College of Financial Services. He has helped tens of thousands of Advisors as well as more than 3,000 personal clients since the year 2000
Don Graves, RICP®, CLTC®, Certified Senior Advisor, CSA®
Don Graves, RICP®, CLTC®, Certified Senior Advisor, CSA®

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