Items Tagged with 'financial planning'


  • Most homeowners think a reverse mortgage is a last-resort option. Here's why they're wrong

    Savvy homeowners can use the loan to maximize their resources in retirement
    Reverse mortgages are traditionally thought of as a last-resort option for seniors who want to stay in their homes but have little resources and few options left. But research has proven otherwise. For those over 62 who want to age in place, a reverse mortgage can be a beneficial financial planning tool for more well-off borrowers in a number of ways.
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  • Bloomberg: Reverse mortgages are staging a comeback

    Industry embraces academics, leaves behind celebrities to spread new message
    Reverse mortgages might be "America's most hated home loan," according to a recent article in Bloomberg, but the news outlet also says they are staging a comeback thanks to the support of leading academics. In the past, these loans were touted as an option for cash-strapped seniors by aging celebrity pitchmen. But now, lenders are turning to retirement researchers and high-profile financial planning experts to promote the product's use as a smart financial planning tool.
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  • Reverse Mortgage Funding: More financial advisors are recommending HECMs

    Lender ramps up education to help partners connect with advisors
    The reverse mortgage industry has been working for years to connect with financial advisors to teach them about the valuable role home equity can play in retirement income planning. Now, leading HECM lender Reverse Mortgage Funding says the effort is finally paying off. RMF says it has seen a significant uptick in interest from advisors and its investing sizable resources into helping its originators build this channel of business.
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  • Finance of America Reverse releases HECM Illustrator

    Sales tool graphically demonstrates reverse mortgage benefits
    It’s one thing to tell someone how payments made on a reverse mortgage loan can grow their line of credit – but it’s another thing to show them. That’s the approach Finance of America Reverse is taking with its new sales tool, the Illustrator. "It's simple, it's easy to use, and it sends a very powerful message," said creator Steve Resch.
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  • Should you use home equity to delay Social Security?

    The CFPB warned against it, but experts say it works
    For some time, reverse mortgage lenders touted a strategy that involves obtaining a HECM early on in retirement in order to delay taking Social Security, therefore maximizing its benefit. But then the CFPB issued a warning against it. Now, retirement researchers and financial advisors say the strategy still has real merit, but suitability depends on a case-by-case basis.
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  • Here's why some financial advisors aren’t allowed to discuss reverse mortgages

    They can bolster a retirement plan, but some advisors can't talk about them
    Reverse mortgages have undergone substantial changes that have repositioned them as a worthy financial planning tool. But many financial advisors are unable to discuss them. The problem is an institutional blackout placed on advisors from their broker-dealer firms. And apparently, this problem is widespread.
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  • The American College promotes education about reverse mortgages

    Offers program exploring HECM's role in retirement income planning
    A sizable number of financial advisors are misinformed about reverse mortgages, and The American College of Financial Services has set out to set the record straight. Through its RICP program, the college educates advisors on how a reverse mortgage can help bridge the retirement income gap.
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  • Should the Post Office become a Too-Big-to-Fail?

    Postal banking services could reach underserved communities
    Will the day come soon when you can mail your package and take out a small loan all at the same place? The United States Postal Service presented its latest idea to help both Americans and itself financially.
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  • Spotlight: Change Is Good. You Go First.

    In our collective quest to reinvent the HECM market, we must dig deep within ourselves to find the courage to try something new. We know it is crucial that we reach the clientele traditionally not served by our industry. We agree that change is necessary to ensure a sustainable HECM program. Yet new referral partners, new studies, new vocabulary and new client needs all require us to amend our established routine. This change can be very difficult to undertake even though the desire is there. Why the reluctance to make the change? In particular, why is there a hesitance in
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  • Feature: Financial Planning and the HECM

    The Home Equity Conversion Mortgage has been around since 1989, but its original application was intended to be somewhat one-dimensional: a singular financial product designed to help seniors age in place. But now, as the product has evolved to include options like the Saver, new ideas are surfacing about how a retiree can tap into home equity as part of a strategic financial plan. Just this year, prominent economic researchers published two independent studies, both examining in impressive detail various ways in which home equity could be used. Data was collected, simulations were run and the analyzed results all pointed
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