The Academy of Home Equity in Financial Planning focuses on smart use of housing wealth

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by Jessica Guerin on May 16, 2019

As defined benefit plans and pensions become a thing of the past, researchers continue to extoll home equity’s critical role in retirement income planning.

For some time, a group of academics and financial planning professionals have sought to spread that message, forming the Funding Longevity Task Force to drive this mission and working in partnership with the American College of Financial Services.

Now, that task force has a new name and a new academic institution to back it. Full article may be found here

Funding Longevity Task Force Gets New Name and Home, Adds Karin Hill

by Chris Clow on May 14, 2019

The organization previously known as the Funding Longevity Task Force, which had recently moved out of the American College of Financial Services, has found a new home with the University of Illinois at Urbana-Champaign (UIUC), along with a new identity created to more closely align with the academic nature of its mission.

Full story here

Reverse Mortgage

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by Marguerita M. Cheng, CFP® , RICP®

For homeowners over the age of 62, money may be tight due to a turbulent economy, greater longevity, and rising health care costs. And let us not forget the roller coaster ride called the housing market. One way to lessen the unexpected shocks that can jeopardize a comfortable retirement is to consider acquiring a reverse mortgage.

PDF of full article may be found at http://blueoceanglobalwealth.com/pdf/reversemortgage.pdf

Understanding Reverse Mortgages: An Interview with Shelley Giordano

Tools for Retirement Planning

SOA research has shown that non-financial assets are the biggest part of retirement assets for many middle American families. The largest part of non-financial assets by far are home values. Housing is the largest item of spending for older Americans, and housing costs vary greatly by geographic area and type of housing. Reverse mortgages offer a way to use some of the value of the home while still living in it. The SOA post-retirement risk research has indicated that few retirees are taking into account home values in their retirement planning. The 2015 focus groups indicated low interest in reverse mortgages. People thinking about planning have been asking the question: how do we take housing values into account in retirement planning? What are the options? How do we evaluate them? This interview with Shelley Giordano provides information about reverse mortgages and how they are being used today.

Full story at https://toolsforretirementplanning.com/2017/05/06/understanding-reverse-mortgages-an-interview-with-shelley-giordano/

How Does the Line Of Credit for a Reverse Mortgage Work?

by Wade Pfau, Ph.D., CFA

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Originally published at Forbes

A mortgage’s effective rate is applied not just to the loan balance, but also to the overall principal limit, which grows throughout the duration of the loan. How the effective rate is applied may sound technical, but it is an overwhelmingly important point to understand in order to grasp the value of opening a line of credit as early as possible.

Full story at
https://retirementresearcher.com/how-does-the-line-of-credit-for-a-reverse-mortgage-work/

Does Your Retirement Plan Account For Your Own Cognitive Decline?

by Wade Pfau, Ph.D., CFA

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With retirement, it is important to consider how declining cognitive skills associated with aging will make it increasingly difficult to self-manage your investment and withdrawal decisions. For households where one person handles money matters, surviving household members will be especially vulnerable to making mistakes when they outlive the family financial manager. Developing a strong relationship with a trusted financial planner can help with both of these matters.

Full story at
https://retirementresearcher.com/does-your-retirement-plan-account-for-your-own-cognitive-decline/

Academic Acceptance for Reverse Mortgages in Retirement Income

by Wade Pfau, Ph.D., CFA

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Originally published at Forbes

In a sign that the time had finally come for the idea of coordinated spending from a reverse mortgage, Harold Evensky, Shaun Pfeiffer, and John Salter of Texas Tech University published two articles—beginning with the August 2012 issue of the Journal of Financial Planning—investigating the role of a standby line of credit. They developed conclusions quite similar to the Sacks brothers without knowing of their work.

Full story at
https://retirementresearcher.com/academic-research-and-other-uses-for-reverse-mortgages/