License #

David Viox NMLS19263
Rob Young NMLS20702

Friday

More Spending or More Legacy? The Choice is YOURS!


 “The reverse-mortgage option should be viewed as a method for responsible retirees to create liquidity from another wise illiquid asset, which in turn can create new options that potentially support a more efficient retirement income strategy, such as more spending or more legacy.” - Wade Pfau

If you plan to stay in your home for your retirement, a HECM (home equity conversion mortgage) or as they are commonly known, a reverse mortgage is a highly recommended and researched solution. 

Wade Pfau, featured writer for The Wall Street Journal, wrote in his article, “The New Case for Reverse Mortgages”, about two reasons smart seniors should take out a HECM loan early in their retirement journey.
First, establishing a line of credit through a reverse-mortgage provides access to immediate money that retirees can use to supplement their retirement income instantly.  Did you know that a HECM line of credit account grows along with the interest rate of the loan? It’s true. Typically, this interest rate is much higher than a savings account so your money grows bigger, faster.  This is an advantage to a more traditional approach to meeting unplanned financial needs which consists of tapping into a 401K account or an investment portfolio; both of which can have tax consequences.

Seniors typically find they need more money than they planned for due to unexpected expenses such as medical bills including prescription costs, credit card debt and cost of living increases such as property taxes and insurance.  Proceeds from a HECM can be used to pay for all of these expenses and more.
Most homeowners have never heard that their home’s built in equity can be utilized in order to supplement retirement savings.  A reverse mortgage is one of the safest, most regulated home loans available to consumers today.

If you want to read about the second reason smart seniors take out a reverse mortgage, you can read Wade Pfau’s entire article by clicking HERE. If you’re not familiar with the features of a reverse mortgage, 
David Viox, Vandyk Mortgage’s HECM advisor would be happy to meet with you personally and teach you about this innovative, flexible, FHA mortgage.


Do you or someone you know plan to retire early? Reverse mortgages are a great financial tool to use to sustain a long retirement with relatively low risk to the borrower since it is a non-recourse loan. Call David now at 513-429-2122. Or go to our website to learn more FREE at www.MyReverseMortgageProfessional.com

1 comment:

Anamika said...

Many of Americans thankful to the Reverse Mortgage Program because of this they can spend their cash payments as they want.This helps them as retirement, medicare etc.