Over the weekend the Wall Street Journal published Three Warnings for Hard Times which discusses a recent notice from the Financial Industry Regulatory Authority about using reverse mortgages, 401(k)’s, and cashing in life insurance policies to weather tough financial times.
“Each of these should be considered strategies of last resort,” Mary Schapiro, chief executive of Finra, said in a speech. Finra was created by the merger of the National Association of Securities Dealers and the enforcement arm of the New York Stock Exchange and is a nongovernmental organization that oversees securities firms.
“The bottom line is that reverse mortgages are an expensive option that may prematurely deplete your home equity,” Finra said.
So what does Finra think are better alternatives? Finra recommends you could sell your house and then downsize or rent, or take out a home-equity loan. To read a copy of the article click the link below.