Should I consider a reverse mortgage?

Comments: 9

• 28 Jan, '21
  Scott Leonard Merged

  These have a very bad reputation with many clients. This could help remove the stigma. Also, from conference presentations, it looks like applying for one as soon as old enough, allows for a larger amount that can be taken later in life. Increases the safety net aspect.

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• 02 Sep, '21
  emily@fppathfinder.com Admin

  "reverse mortgage" (suggested by Steven I Balaban on 2020-05-28), including upvotes (5) and comments (1), was merged into this suggestion.

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• 05 May, '22
  Jim Carlson

  Reverse Mortgages can be a helpful tool in the toolshed for retirement planning. When used correctly (as Scott points out) this can be a helpful vehicle to access the equity in a client's primary residence. Real Estate is a significant portion of American household net worth. A primary residence is often one of the most illiquid assets the client has accumulated. Effectively utilizing this asset on behalf of mass affluent clients can add significant alpha to a financial plan.
  
  Cash flow
  - Will you have enough retirement income to maintain your lifestyle without an RM?
  
  Equity
  - Do you have (less than 50% DTI in your home?)
  
  Legacy
  - Do you have any family members (nonspouse) that live in the home?
  > Consider the implications of what happens to that person's living arrangement once you pass away.
  
  Lifestyle
  - Live there forever?
  
  etc...
  Sauce: https://www.federalreserve.gov/releases/z1/dataviz/dfa/compare/chart/#quarter:129;series:Assets;demographic:networth;population:all;units:shares

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• 09 Jun, '22
  ChrisGranger Admin Merged

  "ARM vs Fixed Rate Mortgage" (suggested by Joseph Littky on 2022-06-06), including upvotes (1) and comments (0), was merged into this suggestion.

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• 09 Jun, '22
  ChrisGranger Admin Merged

  "Mortgage points" (suggested by Emmanuel Henson on 2021-07-07), including upvotes (1) and comments (0), was merged into this suggestion.

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• 09 Jun, '22
  ChrisGranger Admin

  "HELOC vs. Cash-out" (suggested by Dhamma on 2021-06-29), including upvotes (3) and comments (2), was merged into this suggestion.

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• 09 Jun, '22
  ChrisGranger Admin

  Merged "Mortgage points" and "HELOC vs. Cash-out" into this suggestion. "Should I consider a reverse mortgage?" had 14 votes prior to merging.

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• 10 Jun, '22
  ChrisGranger Admin

  "Addition to "Do I pay off my mortgage/home equity line or invest?"" (suggested by Doug Nelson on 2022-05-25), including upvotes (1) and comments (0), was merged into this suggestion. Original language from this merged suggestion: "Add questions addressing whether or not to take out a Reverse Mortgage to this questionnaire or flow chart....PLEASE! These can be great tax-free resources, when used appropriately, to pay Roth Conversions, purchasing vacation property/trips, not to mention the option to live independently with dignity in one's own home throughout their lifetime."

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• 03 Aug, '22
  ChrisGranger Admin

  "Issues to consider in a reverse mortgage" (suggested by scott benjamin on 2022-08-02), including upvotes (2) and comments (0), was merged into this suggestion. Original language from this merged suggestion: "a checklist to help navigate the process and avoid the pitfalls".

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