Mortgage Blog

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.

November 19th, 2015 | supplemental retirement income, Reverse Mortgage, Retirement Planning, HECM Reverse Mortgage, Government insured mortgage, Financial Planning, reverse credit line

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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Jefferson Mortgage Group LLC

2536 Leeds Rd.
Oakton, Virginia 22124
FAX: 703-773-6946
NMLS: 935554

Located in Fairfax County, Virginia. Serving all of Virginia, Maryland & Pennsylvania. 


Jefferson Mortgage Group LLC is licensed in Virginia, Maryland & Pennsylvania.
Virginia State Corporation Commission License Number MC-5659 and the Pennsylvania Department of Banking & Securities #46259 
Maryland DLLR License #21586

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By refinancing the consumer's existing loan, the consumer's total finance charges may be higher over the life of the loan.

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