Accountants Weigh in on Reverse Mortgages and Retirement

In addition to attention in trade journals for financial planners, reverse mortgages are also making their way into the trade press for accountants who partake in financial planning. In a Journal of Accountancy article this month, four Certified Public Accountants (CPAs) weigh in on retirement topics, including one who touts the use of home equity as a retirement asset. 

In addressing questions about robo-advisors, working through lengthy retirements, health care costs rising, planning for dementia in retirement and succession planning, the topic of reverse mortgages is brought up by CPA Jean-Luc Bourdon, CPA/PFS, principal and wealth management practitioner for BrightPath Wealth Planning LLC. 

“For so many Americans, Social Security is the only guaranteed income for life that they receive,” Bourdon says. “So it’s become particularly important to look at strategies to optimize it. Another resource is a longevity annuity, which typically comes into play well into the retirement years…”

In addition, Bourdon says, home equity can be part of the toolbox of solutions. 

“CPAs can also help clients evaluate home equity as a longevity safety net. We get to a point where many clients do face running out of money, and it’s important to address the question of what to do then,” he says. “Selling the home or taking a reverse mortgage to utilize home equity can be one answer. Overall, I encourage clients to create scalable plans that they can change as they move through their lifespan, and scale back when needed.”

View the Journal of Accountancy article.

Written by Elizabeth Ecker

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