It has to be noted that 70% of seniors are expected to have to tap their home equity to make it to retirement let alone through retirement. That is not something we really want to hear because not everyone has home equity as a vehicle. We also have to be realistic regarding Social Security and Medicare. The draw down projected on these entitlements versus the number of people paying into the programs dictate that these programs will have to be modified for them to remain as viable entitlements long term. I am not telling you anything new. It comes down to planning for your own secure retirement or maybe you just want to not worry about it and assume the government circus will be there to insure you eat more than canned beans twice daily.
I would prefer to drive my own car and start with a plan. This leads me to what I would recommend as an integral tool for any retirement plan, the HECM Reverse Mortgage. Anyone in the 62 and above demographic with home equity will have options with a Reverse, but please know that just because you have equity, options with a Reverse may not all the same. In other words, there is risk and you may not have a mulligan to use if you make the wrong choices.
What am I talking about? With a Reverse Mortgage you will be driving the car toward your desired secure retirement. You, and only you, will be behind the wheel and you will abruptly come to a fork in the road. As you screech to a halt, you will see to the left leads to finite equity and to the right leads to infinite equity. You will NOT be scared to death and rife with insecurity. Regardless of the path you take, you will be comfortable. The differential will be those that understand and have chosen a specific path based on merit of a carefully designed plan or those that simply don’t know the difference.
Please keep in mind you and only you will be driving the car. Which way should you go? You need to understand the fork in the road. The correct answer is based on an assessment of where you are in life, your income, the expected life of your various assets, and importantly whether you have a spouse to protect. These are all critical elements of a retirement plan.
Wall Street, as the securitizer and liquidity provider of these financial products, has a plan for you and you know they love you as long as they can make money with their financial products trickled down through the humble army of loan officers that peddle them nationwide. I am one of them. Wall Street wants you to go left toward fast and furious finite equity because that is more profitable. I would like to entice you to consider a slightly different path, with less risk, that will provide lifetime income.
To solve this you need to understand “The How” and “The When”. I would like to help you make this informed decision as part of an integral retirement plan, in conjunction with your financial advisors and family, to show you the path toward infinite equity with a HECM Reverse Mortgage.
Blogging from the front line.
George H. Omilan
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