Morgan Stanley says “Every American’s Home Is Their Retirement Asset”

By Daniel Hunt, Lisa Shalett, Zi Ye, and Stephanie Wang on March 31, 2020

The answer to the question, “How prepared are you for retirement,” depends a lot on whether you look holistically at the balance sheet, including home equity, or just at the portfolio and income sources like Social Security. When home equity is ignored, that can cause households to make suboptimal decisions, such as forgoing longplanned spending it could afford or taking more investment risk than it’s comfortable with. When a questionable decision like that encounters the kind of market downturn we are currently experiencing, it can do serious damage to household finances and well-being.

Find the report here:

How to Recession-proof Your Retirement Have a Mortgage and are age 62+? Consider a Reverse Mortgage

February 16, 2020

Economists Are Gloomy!? Many feel a recession is coming.

Wharton Business School’s Olivia S Mitchell recently addressed the challenges of retirement, especially for retirees. Key steps: First, “try to put together a summary budget” and “make sure you have an emergency fund.”

Academy member Tom Davison discusses the benefits of reverse mortgages for retirees and the various ways they are beneficial for consumers.

Find the full article here.

Propriety Reverse Mortgage Products Could Eclipse FHA’s HECM Program in 2019

Written by Jamie Hopkins on July 2, 2019

The reverse mortgage market world heads in reverse away from the government created Home Equity Conversion Mortgage (HECM) and towards new propriety products. This is an encouraging sign because any healthy market needs competition, innovation, and variety. However, recently HECM program has been the driving force behind the reverse mortgage world, leaving many without an ideal solution to utilizing home equity as part of a sustainable retirement plan.

The article can be found here.