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#56 Reverse Mortgage as an Inflation Hedge

LET YOUR HOUSING WEALTH BE YOUR UMBRELLA

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

Now almost five years into a “three-quarters retirement”, you had been feeling pretty good about the degree to which consistent planning and savings have been playing out in terms of your ability to maintain a comfortable standard of living in retirement. Some part time work along with various community activities have kept you just busy enough. Your insurance has been kept up to date, including a long term care policy, and your home upkeep is where it needs to be (you’re planning to stay in this home for life, and the mortgage will be paid off in three more years.). As a single man with no children, you treasure your independence, as does your companion of many years, who is financially stable in her own right, preferring to continue residing in her own home in a neighboring town.

Your only real (and growing) concern relates to the price increases you’re seeing in everything from gasoline to groceries. While your retirement plan allows for an average annual cost of living increase of 3%, recent price hikes have far surpassed that level. You could take on more your part-time assignments, but do not want to become dependent on an ever lengthening work week.

You’re certainly not alone in your concern. In fact, the authors of a recent USNews article, “Advisors Urge Clients to Plan for Inflation,” observed that “investors didn’t have to concern themselves, as the core inflation rate remained fairly muted while equity markets raced higher. That may be changing.”

https://money.usnews.com/financial-advisors/articles/advisors-urge-clients-to-plan-ahead-for-possibility-of-inflation

One move you might consider is using your housing wealth as an inflation backup plan. Setting in place a Reverse Mortgage Line of Credit on your home will allow you to tap a revolving credit line secured by your own home equity. If and when living costs exceed those anticipated through your prior planning, your will have a supplemental source of funds that can be accessed tax free.

Through careful planning and savings over the years, you’ve succeeded in creating a “raincoat” for your own retirement. With greater-than-anticipated inflation, perhaps your home equity can be your “umbrella”!

https://mutualreverse.com/david-garrison