True Story shared by a colleague of mine: A Financial Planner had a clients (husband and wife) who had been planning to retire for over three years, and the week before the Dow lost 30% of its value this couple both retired from long standing jobs. They lost over $100,000.00 in retirement income funds in one week. Their retirement party was over before they had a chance to hold it!
Millions of retirees across America have seen their investments, retirement savings and portfolios go down. To make things worse, when money is pulled from a portfolio in a down year, it has significant negative consequences over many years of planned retirement. It’s possible the losses may never be recovered.
Having alternative cash resources to provide additional cash flow in down years is vital to protecting future retirement assets, by preserving your portfolio. This strategy is called “Mitigating Sequence of Returns Risk.” Be sure to speak with your financial advisor about what you can do now in your personal situation.
It has been said, “Life is what happens to you when you are making other plans”. None of us planned on this pandemic but we must adapt quickly, and rethinking the use of a reverse mortgage is a good place to start.
*This advertisement does not constitute financial advice. Please consult a financial advisor regarding your specific situation.
If you are a homeowner, over the age of 62 with substantial equity in your home then consider a Home Equity Conversion Mortgage
- HECM: Home Equity Conversion Mortgages (also known as a "reverse mortgages") are a Safe, Smart and Sensible way to convert a portion of your Home Equity into Cash…If you qualify, look at it seriously!
HECM’s are highly misunderstood and a vastly under-utilized loan, designed purposely for Senior Homeowners to convert a portion of a homes’ equity, into cash to be used for any purpose. As long as you live in and maintain the home as your primary residence, pay your home owners insurance and property taxes, then there is …No Required Monthly Payment.
If you are a homeowner, at least 62 and have no mortgage or substantial equity, lining up this type of line of credit is somehting to consider. If you are are a homeowner, at least 62 and still making a payment, you are not alone. Today, over 40% of senior homeowners still make a Mortgage Payment, and many of them do not need to. If this is you, and you have substantial equity, you can shift out of your traditional mortgage to a HECM. Ask yourself this question; If I did not ever have to make another Mortgage Payment, how would this change my cash flow?
…I promise, the more you learn about the HECM, the more you’ll like it!
