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#45 Using A Reverse Mortgage To Make Charitable Gifts

REVERSE MORTGAGE FEES CHARITABLE DOLLARS NOW, NOT LATER

David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

For all of your adult life, to the extent your means permitted, you’ve been a “giver” to charity. As part of your estate plan, in fact, you’ve arranged for gifts to be made to several different religious, humanitarian, and educational organizations. You’d like to do even more, but now that you’re retired, you know it will be prudent to preserve your resources in case future medical or other unexpected costs arise.

Problem is, as you’ve been made aware, the pandemic has created a major emergency for at least one organization to which you’ve been contributing annually. That charity needs supporters’ help now, not someday, in order to help keep hunger at bay for families where breadwinners have lost employment. Knowing how dire the situation is, you’re moved to make a substantial contribution today, but you’re looking for a way to do that without putting your own financial future in jeopardy. The equity in your own home could very well be the key.

A Home Equity Conversion Mortgage HECM line of credit frees up the equity you’ve built up in your primary residence. You can easily tap that guaranteed, growing line of credit to make a meaningful donation to charity, doing so without tapping any of the investment or savings resources you want to have available for medical or other costs that may arise. Meanwhile, the unused portion of your reverse mortgage revolving line of credit can continue to grow.
Simply put, a reverse mortgage can enable you to free up those charitable dollars – now. You can help in the fight against hunger – now, yet preserve your other resources for future contingencies later.

https://mutualreverse.com/david-garrison

Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.

#44 Using A Reverse Mortgage To Add Portfolio Diversification

REACTIVATING STATIC ASSETS TO IMPROVE PORTFOLIO DIVERSIFICATION

David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

As a first step in launching the next great phase of your life, you’ve recently accepted an early (at least earlier than you’d originally planned!) retirement buyout offer from your employer.You’d spent the past thirty-plus years accumulating memories at that company, while also accumulating substantial holdings in its common stock. And, since the awarding of even more equity was part of the buyout package, you realize that your investment position in this one stock now comprises well over half your entire portfolio.

While you consider yourself to be basically non-skittish, the type of investor who takes the long view of the investment markets,  that lack of diversification troubles you, particularly since you’re aware of certain industry developments that you suspect were behind your employer’s decision to execute a reduction in force in the first place. Liquidating shares is an option, of course, but the capital gains tax is a burden you’re reluctant to shoulder, at least not until you’ve “gotten your bearings” as a retirement “newbie”.

There is one asset you may not have considered as you launch your retirement strategy – the equity in your own home. Using a Home Equity Reverse Mortgage Line of Credit, you can begin to add assets to your stock portfolio. By selecting industries that are negatively correlated with the one from which you’ve just retired, you enhance the safety – and the growth potential – of your overall holdings. And with no tax liability triggered as you draw on your non-recourse loan, you accomplish diversification without needing to liquidate large chunks of your ex-employer’s stock.

Through a reverse mortgage strategy, you draw upon a now asset in order to effect dynamic improvement in another!

Not intended as financial planning advice. Consult a financial advisor

https://mutualreverse.com/david-garrison

#43 Using A Reverse Mortgage To Pay Adult Kids’ College Debt

RESCUING ADULT KIDS FROM NEVER-ENDING COLLEGE DEBT

David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

Like many of your friends, you’ve tried to help fund the grandchildren’s college costs by making gifts over the years and by contributing to educational savings accounts in each one’s name. Now, though, with the pandemic’ having affected careers and increased household costs, you realize there may be a bigger issue – your children are still laboring to pay off their own lingering college loan debt! (They are hardly alone in this problem; you’ve been reading articles about the fact that student loans are one of the highest sources of debt for Americans.) But these are kids under pressure, and you’ve been wondering how – and to what extent, you can help.

In fact, this isn’t the first time you’ve thought about the issue of lingering college debt. You’ve included student loan payoffs as part of your legacy to your children after your death. But, seeing your adult children’s household income severely reduced over this past year, your instinct is to find a way to provide more immediate help. At the same time, you realize, you have to consider the impact that financial help might have on your own retirement finances.

Consider coming at the issue “in reverse”, using the equity you’ve built up in your primary residence to help your children get out from under. With a Home Equity Conversion Mortgage, or HECM, you will be able to tap a guaranteed, growing line of credit, using the funds to bring meaningful relief to your children now, when the pressure of financial uncertainty is greatest for them. Most important, you will be in a position to offer that help without tapping the investment or savings resources you want to have available for your own needs.

Using a reverse mortgage to help relieve your children’s long-standing student debt burden is one way of making a gift of education after-the-fact!

tps://mutualrevcopy.wpengine.com/david-garrison

#42 Adding Longevity To Retirement Assets With A Reverse Mortgage

GIVING RETIREMENT ASSETS MORE “STRETCH”

David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

You’ve been building up financial assets for a long time in preparation for retirement, and now that you’re on the brink of bidding fond farewell to your career, you have plans to enjoy life to the fullest. Needless to say, you want to remain financially independent, continuing to live in your own home. Your biggest planning concern, of course, is making sure your portfolio assets don’t run out of steam before you do.

Tax-free “tenure payments”1 from a home equity reverse mortgage can provide just the added ‘stretch” you need. Using the equity built up in your home, you arrange for regular payments throughout your lifetime. That income stream has the effect of reducing the amount of the monthly withdrawals from your investment portfolio, in turn increasing its longevity even as you focus on enjoying your own.

What’s more, since those reverse mortgage payments are treated as non taxable loan proceeds, that extra money goes a lot further towards helping you keep abreast of retirement living expenses. Meanwhile, of course, you retain title to your own home.

You’re always going to be the type to keep a watchful eye on spending levels, you realize. Still, it’s reassuring to realize that coordinating withdrawals from a reverse mortgage with withdrawals from your portfolio is helping reduce your risk of running out of money.

Ahhh….it feels pretty good, knowing you’ve given your own retirement assets a bit more “stretch”!

https://mutualreverse.com/david-garrison

Not intended as tax advice. Consult a tax specialist.

#41 Using A Reverse Mortgage to Stay Home After a Divorce

KEEPING THE HOUSE POST DIVORCE

David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

In these “worst of times”, your primary goal is to keep life as stable as possible for your grandchildren as you go through a divorce. Not only is it important that you remain close to the customers of your home-based business, it’s crucial that the children not need to change schools In addition to the double upheaval caused first by the death of their parents and now by your “gray divorce”, everything about their schooling has been unstable, seesawing between in-person and virtual sessions. What’s more, under the joint grandparental custody arrangement, the kids will need to get used to one new part-time living arrangement. It would be the height of cruelty, you fear, to force them to adapt to two.

Meanwhile, you’re facing a very tough question “Can I afford this house, considering the mortgage, the real estate taxes, the homeowner’s insurance, and the upkeep?” (Your divorce attorney has argued these very points, but you’re not sure the settlement is going to be sufficient, even with the life insurance proceeds the children inherited.)

Tapping into the equity in your home might provide the answer. Sure, you’ll still need to pay real estate taxes, insurance, and cover all the usual maintenance costs, but there will no longer be a mandatory monthly mortgage payment. Once your life settles into a new routine, you may find you’re able to make mortgage payments after all.

Since, with a reverse mortgage, the title of the property will still be in your name, and, once the grandkids have left the nest, you’ll have the option of selling the home and perhaps downsizing.

https://mutualreverse.com/david-garrison

#40 Using A Reverse Mortgage to Increase Accessibility

“RAMPING UP” ACCESSIBILITY IN MORE WAYS THAN ONE

David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

While a number of your friends have been selling their homes, relocating themselves and their dramatically downsized possessions to retirement communities, the two of you are determined to continue making memories right here in the house you’ve owned for so much of your lives together. You’ve been watching reality TV shows about physically adapting a home for “aging in place” and are ready to think about beginning some of the indoor projects this winter, then moving in the spring to some of the heavier outdoor work

The first of your two biggest concerns involves aesthetics. While certain health conditions make both air quality and fall prevention primary goals, you both abhor what you call the “nursing home look” of grab bars and wooden ramps. Thankfully, the shows you’ve watched have demonstrated some highly pleasing, yet safety-conscious design options, including very modern interior and exterior lighting and accessibility choices.

Your second concern is financing the substantial cost of the renovations. Even spread out over a couple or even a few years, doing the job right will take quite a chunk out of your retirement assets. With the greatest portion of your savings residing in tax-advantaged accounts, your tax advisor has cautioned that large, lump-sum withdrawals (over and above the systematic payments your have arranged) can affect not only your tax bill, but even the tax you pay on Social Security benefits.

A reverse mortgage might improve “accessibility” in more than one sense of the word. Using the equity built up in your home, you arrange for a HECM Adjustable Rate Loan line of credit on a reverse mortgage. Since the FHA-insured loan requires no monthly mortgage payments and has no fixed due date, you can draw only the amounts needed to finance each stage of your aging-in-place home renovations. In fact, should the home improvements cost less than expected, your line of credit will be a welcome resource to tap for future needs.

A reverse mortgage can help “ramp up” accessibility – of both your home you’re your financial resources!

https://mutualreverse.com/david-garrison

#39 Using A Reverse Mortgage To Launch A Late-Life Career

REVERSE MORTGAGE EMPOWERS ENCORE CAREER

David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

After a long and quite successful career, you’d been looking forward to retirement, but soon learned you’re not cut out for rest and relaxation. Exploring new possibilities for directing your considerable energies and talents, you’ve decided to launch an entrepreneurial enterprise in the form of a home-based business.

In terms of your own living expenses, you’re confident that your careful planning will allow you to easily maintain your standard of living, what with your pension, tax-advantaged retirement and other investment accounts. With a life insurance plan and a long term care e policy, you feel prepared to move forward.

The new business plan brings some new considerations and concerns, however. While you’re confident you can handle the upfront costs of launching your new gig, you want to be sure you’re prepared to handle unexpected business expenses. What if it takes you longer than hoped to generate net cash flow? On the positive side, you want to be able to seize opportunities to expand.

A federally insured reverse mortgage might provide just the assurance you need, in the form of a line of credit from which you can draw as needed for your new business. By leveraging the equity you’ve built up over the years in your home, you’ll buy yourself time to get your entrepreneurial enterprise on solid footing. You will need to continue paying property taxes and homeowner’s insurance, but there will be no required monthly mortgage payments. Best of all, “draws” you take from the line of credit will be tax free.

Could a reverse mortgage be just the ticket to empower your “encore career”?

https://mutualreverse.com/david-garrison/

#38 Using A Reverse Mortgage for Income Planning

REVERSE MORTGAGE HELPS HOMEOWNERS PLAN, NOT PREDICT

David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

In a recent article, Dan Moisand, CFP® notes that predictions about “safe withdrawal rates” in retirement planning are flawed, because they are typically based on the assumption that spending habits will remain level over decades…

Looking back, of all the decisions you needed to make when planning your retirement a couple of years ago, the most challenging for you as a couple was figuring out how much money you’d be spending each year. You no doubt started the process by projecting you’d need 70% or perhaps even 80% of what you were used to bringing home while still employed full time. Then, like most of your friends, you set up a 4% withdrawal plan out of your investment assets, since you’d always been told that was the “safe” way to go.

In the beginning, your plan seemed to be working just fine; in fact, so far you haven’t needed to tap your resources for more than the planned monthly distribution. Your spending patterns haven’t dramatically changed. What’s more, due to the pandemic, you’ve cut back on some of the travel you’d planned. You’re in the habit of rebalancing the asset mix in your portfolio a couple of times each year. Despite all these measures, you can foresee a problem. Inthe event some big expense presented itself, your entire plan could be thrown “off balance”. (Dan Moisand agrees, saying “What can stress a client’s finances is a shock event.”)

There is an alternative. Used as a line of credit from which you can draw as needed for any “shock events”, a federally insured reverse mortgage might provide just the retirement income “cushioning” needed. Any “draws” you take from that line of credit will be tax free. Meanwhile, as long as your regular plan of investment withdrawals is working, your reverse mortgage money will remain in “the account”, growing tax free at the same rate as the current interest plus ½% mortgage insurance premium.

Almost every retirement withdrawal system involves a steady, predicted spending pattern. Problem is, reality is seldom stays in lockstep with predictions. With a reverse mortgage, rather than predict, you can create a reliable backup PLAN.

https://mutualreverse.com/david-garrison

Not intended as tax advice. Consult a tax specialist.

#37 Using a Reverse Mortgage to Cover Pandemic-Imposed Needs

BE READY TO REBOUND FROM PANDEMIC-INDUCED COSTS

David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

You’ve both always carried on a very active lifestyle, and the first couple of years since your retirement have featured a high level of sports-related leisure activities. To a significant extent, the pandemic “crimped your style” during the past year, but you have high hopes that 2021 will allow you to get back on track. Meanwhile, the pandemic has changed your financial outlook somewhat, in that two of your children have needed help, one due to a job loss, the other due to unexpected medical costs. In order to provide that much-needed parental assistance, you had to liquidate some of your own portfolio assets, which unfortunately increased the income you expect to report on your 2020 tax return.

While you have a reassuringly low level of debt and are covered by Long-Term Care insurance, last year’s events have caused you some concern about maintaining adequate “cushioning” against unexpected future needs. Of course, you would like to avoid triggering excess taxes through unplanned withdrawals from your respective retirement portfolios.

There’s a possible better way. Rather than tapping your portfolios, consider using one of your largest assets as a buffer against unexpected future contingencies. Once having established a Home Equity Conversion Mortgage (HECM) line of credit, you’ll be in a position to help your children deal with setbacks as you judge fit, doing that without altering your investment strategy – and without triggering any negative tax effects for yourselves.

A reverse mortgage might well be your path for rebounding from past, pandemic-induced costs, and for feeling prepared for whatever the future has to bring.

https://mutualreverse.com/david-garrison