Financial Plan With A Reverse Mortgage

Incorporating the Reverse Mortgage into an Existing
Financial Plan
The Reverse Mortgage can play an important role when used as a component in the senior’s
overall existing financial plan. The concept is to utilize the proceeds from the Reverse Mortgage
before tapping into the investment portfolio. Additionally, the tax free monthly stream of funds
from the Reverse Mortgage allows for the senior to postpone receiving Social Security income in
order to maximize that benefit at a later age.
Bottom line… Use the proceeds from the Reverse Mortgage before tapping in to the investment
portfolio or social security income. Accessing home equity, strategically… during retirement,
can help senior homeowners to: extend retirement assets, increase cash flow and reduce taxes
The Reverse Mortgage serves as a fourth leg of the retirement plan
o Social Security
o Pension / 401k
o Personal Savings / Investments
o Reverse Mortgage
Strategies
o Portfolio Management – Borrower will have an additional source of funds from which to draw
during down markets (prevents portfolio depletion during times when asset is already declining).
o Supplemental Income – Borrower may draw consistent supplemental income from their home
equity through a monthly payment stream to enhance monthly cash flow.
o Postpone receiving SS Income – Use Reverse Mortgage proceeds to provide tax free monthly
funds from 62 years of age until a later date to maximize Social Security income dollars.
o Replace the taxable income generated from CD’s or Bonds with a tax free monthly stream of
funds generated by a RM.
o During bull markets, if desired, Portfolio funds can be used to pay down the Line of Credit
balance.
The key is to be pro-active, not re-active
A Reverse Mortgage, when used with a financial plan, is best when it’s not being used as the
“loan of last resort”. Early intervention with home equity could radically alter the retirement

outcome. Draws from the portfolio in a bear market can be devastating to cash flow survival.
Especially in the early retirement years. By relying on home equity in coordination with portfolio
withdrawals, many retirees might be able to justify a more robust withdrawal rate and for some,
simply a way to stay on track. More money helps stabilize the plan to create a more stimulating
retirement.
http://roseburgreverse.com