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#69 Reverse Mortgage to help postpone portfolio draws


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

January 25th, 2022

As a financial advisor, you’ve prided yourself on working in cooperation with your clients’ other advisors (CPA, estate planning attorney, business broker, realtor, insurance agent), even helping clients assemble those advisory teams. It is not unusual for you to host and even “emcee” such advisory team meetings for different clients.

Up until recently, reverse mortgages have not been under discussion at any of these team meetings. For one, your clients have mostly been too young to qualify for reverse mortgage funding. Now that several have introduced their parents to your practice, the topic of housing assets as part of wealth planning has become more relevant, with questions arising about the pros and cons of different types of reverse mortgages.

While there are ways to use a reverse mortgage to help clients achieve a variety of financial goals, one signal that this topic should be included in the “agenda” is clients expressing a strong desire to “age in place”. Since reverse mortgage debt does not need to be repaid until the owners sell, move, or die, clients can plan to spend their retirement years in familiar surroundings.

Since you are the financial advisor on the “team”, the one aspect of a Home Equity Conversion Mortgage most relevant to the services you provide your clients is the financial flexibility they will have to preserve and grow their investment assets. After all, your biggest challenge as a financial advisor consists of helping retirees maintain their desired standard of living without depleting their assets. But, as you’re all too aware, significant market losses in the early years of retirement can dramatically shorten the longevity of a portfolio.

When draws from a reverse mortgage line of credit are substituted for portfolio draws in years following investment market downturns, the longevity of the clients’ investment assets can be restored and even enhanced.

Housing wealth can enable a long term wealth management strategy..