Reverse Mortgages: Easy Income For Affluent Retirees
Summary
A new study published today by the Journal of Financial Planning reveals that reverse mortgages can provide an essential risk management tool for millions of retirees. “So many retirees worry that their investments won’t be able to support their lifestyles or last the length of their retirement journeys, and those who draw from their portfolios when markets are depressed are at a permanent disadvantage that they’ll never recoup. Due to the rapid growth in property values, homeowners aged 62 and older have amassed more than $10 trillion in housing wealth, according to the National Reverse Mortgage Lenders Association. It points to a massive demographic shift for the reverse mortgage industry and strengthens its position as a broader wealth management solution for wealthier Americans entering retirement. While wealth managers have abided by the MPT principles of asset allocation and portfolio diversification for over half a century, reverse mortgages have been largely overlooked due to outdated pre-conceptions.