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Event Replay (see video below) – Roth Conversions and Reverse Mortgages
Event Description:
This class is taught by Steve Resch, CLTC; VP of Retirement Strategies at FAR; Investment Advisor and partner in a wealth management firm.
A new consideration for paying taxes incurred with a Roth Conversion could be the use of home equity with a reverse mortgage. This provides the liquidity that might not otherwise be available to reallocate a portion of your net worth into an income tax free status, creating tax and cash flow flexibility and potentially a higher net worth over time.
We will walk through this topic, the benefits this strategy brings, and even note when it is most clearly a good solution!
Additionally we will delve deeper into multiple scenarios that helped draw these clear conclusions. You don’t want to miss out on this comprehensive review of this strategy.
Resources
Complimentary Book
For a no cost copy of Wade Phau, Ph.D., CFA 2nd Edition: THE RETIREMENT RESEARCHERS GUIDE SERIES – REVERSE MORTGAGES – How to use Reverse Mortgage to Secure your Retirement.
For a free copy contact Tony
How to benefit and protect your client’s portfolio by integrating the New Reverse Mortgage.
Many Financial Advisors understand that a Reverse Mortgage is not a panacea, nor a single tool to substitute for making sure that their clients have enough in their retirement savings and investments to fund their lifestyle needs, but, for retirees or soon to be retirees, a Reverse Mortgage may be appropriate, and beneficial.
There are many ways that a HECM (Home Equity Conversion Mortgage) or 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.
- Increase Wealth
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 New 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 to protect their spouse
- 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 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 a Reverse Mortgage refinance or Reverse Mortgage purchase.
Please contact me directly at 503.806.1620 or Tony.Meuers@rate.com to help guide your clients through the process of the New Reverse Mortgage loan options.
