Financial professional
Gain insights into effective strategies that empower you to assist your clients in building wealth.
Using Equity in Retirement
For the average senior, approximately 70-80% of their potential wealth is in their equity. Learn to see how the reverse mortgage can either help your client add to their existing nest egg for retirement or protect their existing assets they worked their whole life for.
Adding to a Nest Egg
For clients that have a mortgage, the reverse mortgage creates flexibility with the payment. They can redirect the payment they would have been making into their cashflow, adding to retirement assets. If your client wants to make payments, they can pay down the balance while storing all their payments in a Line of Credit for future use.
Redirecting Payments
Growing Line of Credit
For clients with low to no mortgage balance, their available proceeds will be on a Line of Credit. This LOC can never be cut or frozen due to market conditions, and the unused portion will have compounded growth. If they need it, use it. If they don’t, let it grow. The typical Reverse LOC can double your client’s available equity in 10-15 years.
Equity Insurance
Relying on untapped equity for the future can be a huge risk. With market fluctuations, you never know what equity will be available, but the reverse mortgage can give reliable access to equity. The government insured HECM guarantees your ability to access eligible equity no matter what's happening in the market.
Add Longevity
Using a reverse mortgage side by side with existing retirement assets and slowing down the withdraw rate from retirement accounts can dramatically extend the life of your client’s retirement accounts.
Protect Existing Assets
Tax Free Cash
Having access to tax free cash can allow your client to strategize when to use which asset. Reverse Mortgage proceeds are not considered income, so you can avoid upfront tax consequences as well as avoid breaching into higher tax brackets.
Proactive vs. Reactive
Like any retirement planning, setting up the Reverse Mortgage early in retirement will typically always provide more access to equity than waiting to be older. Based on historical performances, the growing LOC will usually provide access to a larger portion of equity than waiting for higher LTV tiers at high ages.
