How to benefit and protect your client’s portfolio by integrating the Reverse Mortgage.
Many Financial Advisors understand that a Reverse Mortgage is a great tool to protect income earning assets, provide increased portfolio performance and fill certain gaps.
There are many ways that a Reverse Mortgage can be used as a powerful tool to benefit your clients. If used strategically, your clients can even see growth in their available funds through a Reverse Mortgage Line of Credit. (LOC)
By accessing equity in their homes, can help eligible clients leave their current investment portfolio untouched for longer, can delay collecting social security, and enable your clients to free up cash to invest in other investments within their portfolio.
By using the Reverse Mortgage as a financial planning tool, your clients can allow their investment portfolios to remain untouched and allow it to gain in value or avoid selling investments at a loss. Especially during market downturns when stocks, and other investments have taken a negative hit, the Reverse Mortgage should be a strategy that is considered. In fact, research has indicated the Reverse Mortgage line of credit growth is a powerful tool that can help mitigate sequence of returns risk for retirees who have invested retirement assets. **
Flexibility of Funds
If a client delays selling retirement investments or uses the Reverse Mortgage funds for other purposes, ultimately tapping into home equity can offer successful financial options for retirement.
The Reverse Mortgage can be used to:
pay for health care and living expenses
can be used as a potential safety net for clients who may still want to take liberties with their other investments.
can be used to help clients that need additional guaranteed income.
can be used for clients that prefer to not make their mortgage payments to free up cash flow and to invest this money into their other investments.
can be used as a strategy that may free up significant cash for clients that are downsizing or looking to right-size their retirement home.
These are just the beginning of many ways that your clients may use or may have a need for to help supplement their retirement income.
The Reverse Mortgage Plan is not the catch all to retirement, but renowned researchers have shown that home owners 62 years of age and older can find benefit when they use the Reverse Mortgage as part of their retirement strategy.
Whether you’re looking to add new wealth management clients,or simply improve your client’s existing financial plans – With different rules and qualification criteria to follow, it’s important that you have a toolbox full of resources to help you determine which of your clientele could benefit from Reverse Mortgage purchase.
Homesafe Loans: For certain HomeSafe® products only, excluding Texas and Utah. The HomeSafe reverse mortgage is a proprietary product of Finance of America Reverse LLC and is not affiliated with the Home Equity Conversion Mortgage (HECM) program. Not all HomeSafe products are available in every state. Please contact us for a complete list of availability.
Commercial Loans: Product not directly offered by Finance of America Mortgage LLC. See your advisor for details. Broker featured in this advertisement is not employed by Finance of America Commercial LLC and their affiliation with Finance of America Commercial LLC is limited exclusively to the commercial loan products they can offer through their broker relationship with Finance of America Commercial LLC.
Product offered through Finance of America Commercial LLC | Equal Housing Opportunity | NMLS ID# 1133465 | Product not offered in all states. | Loans are subject to investor and business credit approval, appraisal and geographic location of the property and other underwriting criteria. Loan amounts and rates vary depending upon loan type, LTV, verification of application information and other risk-based factors. Application fees, closing costs and other fees may apply. Borrowers are approved for a maximum exposure limit, based on their experience, liquid assets, net worth, and credit score. Each loan is subject to property approval under Finance of America Commercial terms and conditions. Each property has an individual secured loan. Loans made or arranged pursuant to a California Finance Lenders Law license.