The Academy for Home Equity in Financial Planning took a deep dive into how financial planners work with and understand credit tools. This white paper is the result of a Spring 2020 survey of financial planners, insurance agents and registered representatives. The results shed light on how financial planners make credit recommendations, and how education enhances usage of credit products.
Are you interested in learning more about reverse mortgages? This video from American Advisors Group (AAG) describes what a reverse mortgage is and how it can be beneficial to you or a loved one.
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.
By Neal Templin on Dec. 14, 2019
Looking to free up $4 million to fund your retirement or pay off your mortgage?
If you’re a senior with serious digs in places like California or the New York City area or other markets where many homeowners are house-rich and cash-poor, you might be able to secure such funds with only your home. The market for jumbo reverse mortgages has come back to life.
Reverse mortgages, in which retirees tap the equity in their homes through mortgages that don’t have to be paid as long as they live there, were long regarded as a last resort. Then financial experts began publishing research several years ago showing that the strategic use of reverse mortgages could help retirement portfolios better survive down markets or delay the claiming of Social Security benefits.
You may find the full article here.
Written by Richard Eisenberg on November 25, 2019.
This Forbes article highlights the most important things to know before getting a reverse mortgage; including knowing the obligation of the mortgage and be aware of the fees associated with HECM loans.
Find the full article here.
By Eileen Ambrose and Sandra Block on August 29, 2019
“These money-generating tactics will help retirement savers enjoy their Golden Years without stressing over cash.”
Check out this article with the Academy’s very own Shelley Giordano here!
As we enter retirements, the change in lifestyle is an inevitable challenge for almost every retirees. How can you preserve your lifestyle without steady income streams? How to utilize your existed assets to support your retirement? To answer these questions and offer more advice, Shelley Giordano launched “What’s The Deal With Reverse Mortgages” second edition on Kindle. Learn more about the retirement assets folks don’t know they have.
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.
By Jamie Hopkins on June 24, 2019
Hear from Jamie Hopkins in this Forbes article regarding the public’s opinion on reverse mortgages: “A few years back, I conducted and published research in the Journal of Financial Planning that showed Americans don’t understand reverse mortgages. In fact, respondents scored below 50 percent on a 10-question true-false quiz.
One possible explanation for the poor performance is a lot of misinformation floating about. A recent USA Today article titled “Considering reverse mortgages? Better to reverse course on this risky course” confirms my belief. The article contains many half-truths and misunderstandings and projects a negative connotation of reverse mortgages onto the reader.””
Tom Davison and Keith Turner
The Journal of Retirement Fall 2015, 3 (2) 61-79; DOI: https://doi.org/10.3905/jor.2015.3.2.061
There is little doubt that many older Americans are not well prepared financially. The reverse mortgage is a financial instrument that can brighten their financial prospects and reduce the chances of an old age in financial straits. This article explains how reverse mortgages work. Recent research shows that strategically combining reverse mortgages and investment portfolios can significantly boost sustainable retirement income. Moreover, in the last three years the regulatory framework has been revised to develop further the market for these instruments. Reverse mortgages are increasingly recognized as a valuable financial planning tool. They are now seen as well suited for retirees—not only underfunded homeowners who turn to a reverse mortgage as a last resort, but also those who enter retirement well-funded.
To view the full article, click here.