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{Video} How to Build a Simple Social Security Deferral Bridge with a HECM Reverse Mortgage

Overview

Optimizing retirement outcomes for your clients is every advisor’s goal. The 2 minute video below shows how HECMs can be used to create a deferral bridge. The mechanics are very simple:

  1. Establish a ReLOC (Reverse Mortgage Line of Credit). See more at www.ReLOC.net.
  2. Determine how much monthly or yearly income your clients will need to replace.
  3. Determine for how long they will need it.
  4. Draw from the ReLOC to subsidize some, all, or part of those funds to bridge the gap.

Clearly, it is easy to do, but is it the right thing for your client?

I cannot answer that without asking more questions, learning the specifics, and running some scenarios. Are the clients married? What are their life expediencies? How much do they have saved? What are their Core Concerns for retirement? Do they have any other Non-Correlated Assets to draw from during deferral? All of these questions and more must be answered to draw optimal conclusions.

What I do know without needing to ask further questions is that shortening the retirement draw period, planning for longevity, and increasing the lifetime inflation adjusted payouts that come with deferral should certainly be part of any legitimate retirement income planning conversation.  Wouldn’t you agree?

To not discuss general longevity planning or delayed asset conversion strategies (Social Security, IRA, Pensions, and Annuities) is to limit the scope of comprehensive planning.  All options, strategies, and tools should be weighted, evaluated, and discussed.  HECMs are no different.  They may not be the conclusion, but they must certainly be part of the conversation.

Video: A Quick Calculation of Using a HECM to Defer Social Security

{Video} Dr Tom Davison Social Security

Click Here to Download The Conversation Starter: 25 Ways to Use a Reverse Mortgage

Related: 

{Video} Should Reverse Mortgages Be Used to Defer Social Security? A Recent Government Report Says No

Delay Social Security: Funding the Income Gap with a Reverse Mortgage

Don Graves, RICP®, CLTC®, Certified Senior Advisor, CSA®

Don Graves, RICP®, CLTC®, Certified Senior Advisor, CSA®

President and Chief Conversation Starter at HECM Advisors Group/Institute
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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