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How to use a reverse mortgage to protect your retirement income. Marketwatch Article Comment.

How to use a reverse mortgage to protect your retirement income.  Marketwatch Article Comment.

I agree that most people should consider establishing a HECM Reverse Mortgage credit line as early in life as possible. However, although I would support the idea of using a reverse credit line to protect retirement income, I am not convinced that it has practical application due to its complexity.  Having said that, I am familiar with the Sacks & Sacks research on this subject from 2012.  I have licensed it for redistribution, but again and again, I come back to what is realistic for my average 76 year old client for a Reverse Mortgage.  Simplicity and security is what they need.  The portfolio management angle is not where I see the real benefit for retirees and seniors.  To touch on an important point in the article referencing, “the potential ability for a client to spend more than their home value”.  This relates to the growth factor and funding options like the tenured annuity-like option.  These key areas of benefit, along with the fact that it is a non-recourse loan with preferential estate treatment, are often overlooked and buried in skepticism towards the Reverse Mortgage program versus a will to understand their significance.

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