New Perspective on Reverse Mortgage

I have been doing reverse mortgages for over 4 years and it is my specialty. I recently recruited my sister to join me in educating families about the benefits of reverse mortgages. We fundamentally believe reverse mortgages put many retirees in the best possible financial position. We can explain how it can be used as a financial tool to protect other investments and prolong money needed for retirement. The fixed income market (bonds) is going to decimate the boomers as the current high inflation diminishes the real return on a bond over time. The value of USD is getting inflated away at 40 years highs. Our personal family is using this strategy. 

The reverse mortgage is not a "needs only" or "last resort" option. It is designed to be used proactively as a retirement tool to help supplement savings, investments, SSI, pensions which slowly or drastically get drained in retirement. "When" not "if" the correction in the stock market, real estate market, bond market (already yielding negative returns) comes people need to pull money from other places. You never want to be in a situation where you have to pull from a down investment and therefore can switch to reverse mortgage funds to live on until the markets rebound. The key is to have the reverse mortgage in place before you actually need it because when you need it, it may no longer be an available option.

The known information we have:

· Inflation at 9.1% (40 year high). This hurts people on fixed income most because they have no way to replenish or outpace the loss from inflation unless they go out on the risk curve into speculative investments. 

· $30 Trillion federal debt level (all time high)

· $9 Trillion Fed balance sheet (all time high)

· Home prices at all time highs (up 20% year over year) 

· Rental prices at all time highs ( up 19% year over year)

Does the data above look sustainable to you? Then add a war on top of it (Russian/Ukraine). A lot of potential for things to get crazy expensive. I am by no means wishing pain for anyone, but we can't put our heads in the sand and hope for the best. Homework needs to be done and preparation to be ready for anything is critical right now.

A great article that was published by Reverse Mortgage Daily: Click Here

Sources:

Consumer Price Index: https://fred.stlouisfed.org/graph/?g=8dGq

Federal Public Debt: https://fred.stlouisfed.org/series/GFDEBTN

Fed Balance Sheet: https://fred.stlouisfed.org/series/WALCL

Year over Year Home Prices: https://www.advisorperspectives.com/dshort/updates/2022/07/26/may-s-p-case-shiller-home-price-index-up-19-8-yoy