Why do we wait? We wait for the right time. We wait for things to get a little better. We wait until we feel completely certain. And sometimes waiting does make us feel better. Sometimes, looking back over a short period of time, we can even point to a small benefit and say, “See, waiting worked.”
But I think there is a bigger question worth asking: What has waiting really done for us? Has it consistently put us in a better position, or has it sometimes cost us an opportunity we didn’t recognize until it was gone?
I remember during the 2008-2009 financial crisis, I was watching Bank of America stock. I told myself I would buy it when it dropped below $2 a share. I waited. And waited. It never got there. I had identified an opportunity, but instead of acting on what was available, I focused on getting an even better opportunity. Looking back, had I bought when I originally wanted to, that investment could have funded my retirement completely.
That’s the problem with waiting: we’re often measuring today’s opportunity against some hypothetical version of tomorrow that may never arrive.
I see the same thing happening when people think about their home and the role their housing wealth could play in retirement. With a Reverse Mortgage, for example, an adjustable-rate option can provide access to a line of credit. And this is where the cost of waiting can be easy to overlook. People tend to focus on what they might gain by waiting – perhaps a better rate, a higher home value, or simply greater comfort with the decision – but they don’t always consider what they may be giving up during that same period. One of those things can be potential line-of-credit growth.
I have a client I’ll speak about only in general terms who has been waiting for roughly three years. Based on the scenario we originally discussed and where that line of credit could potentially be today, that decision to wait may have meant giving up more than six figures of potential line-of-credit growth. That doesn’t mean everyone should act immediately. It means waiting has a cost too, and that cost deserves to be part of the conversation.
Often underneath the waiting is fear. Fear of making the wrong decision. Fear of something we heard from a friend, read online, or experienced years ago. Fear deserves to be addressed, but it shouldn’t be allowed to make the decision for us. If I’ve done my job correctly, you should understand the information well enough that fear is no longer driving the conversation. And if you’re still afraid, then we’re not finished. We need to go back, identify exactly what that fear is based on, revisit the information, and make sure every question has been answered. The goal isn’t to convince you to do something today. The goal is to make sure that if you decide to wait, you’re waiting because the information supports that decision – not simply because waiting feels safer. Because sometimes the greatest risk isn’t making a decision.
Donald Battista, NMLS ID 2030959. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Arizona Mortgage Banker License 0926603. Florida Mortgage Lender Servicer License MLD1827. Louisiana Residential Mortgage Lending License 1025894. Oklahoma Mortgage Lender License ML012498. Texas Mortgage Banker Registration 1025894. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org
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