As the precipitous decline and ongoing volatility in the stock market continues to erode the value of many individuals’ investment portfolios, Americans who are in or nearing retirement may feel pressure to “protect” their retirement or a need to continue to withdraw money to keep up with existing bills. Either way, these choices can erode future earning potential. There are better alternatives, and older Americans today are sitting on over $9 trillion in home equity—now is the optimal time for many retirees to tap into that equity and enhance their retirement plan for a prosperous future.
With interest rates at historic lows, home appreciation at all-time highs and frequent market fluctuations, tapping into home equity, specifically a reverse mortgage, is a timely solution that more retirees and their financial advisors are considering within their retirement planning strategies. Reverse mortgages enable borrowers to tap into the equity that is stored up in their home and withdraw funds as needed, either in a series of payments, a lump sum or as an available line of credit.
KEY BENEFITS OF A REVERSE MORTGAGE:
- Access to an alternative source of income that can be withdrawn to pay bills and address other important financial needs, even when other funding sources aren’t available.
- Financial freedom to stay invested during stock market lows and down-shifts but not be forced to sell assets from retirement accounts at significantly reduced values in order to generate income.
- All proceeds are income-tax free, and there’s no required principal and interest payment for as long as the borrower is living in the home.
For more information visit: FAR.com
MORE ABOUT SCOTT NORMAN
Scott Norman has had a 28-year career as a mortgage banker. He led the original campaign to amend the Texas Constitution to authorize reverse mortgages in the state in 1999, when he founded the Texas Association of Reverse Mortgage Lenders. He later closed the first reverse mortgage loan in Texas. Norman has testified numerous times before state legislatures to help craft legislation to protect senior homeowners around the country. He got his start in the mortgage business in Austin in 1993, later becoming president of the Austin Mortgage Bankers Association. Norman is the vice president of field retail and government relations at Finance of America Reverse, and he currently serves as co-chair of National Reverse Mortgage Lenders Association (NRMLA) board of directors for the 2022-2023 term.
Interview provided by Finance of America Reverse
