Reverse Mortgages Mentioned on Economist Blog
December 2nd, 2008 | by admin Published in News, Reverse Mortgage | 2 Comments
Last week the Economist’s Free Exchange Blog wrote about reverse mortgages in Reversing insecurity. The post covers how the reverse mortgage business is the once aspect of the mortgage market that continues to thrive.
Besides the fact the Economist is quoting a Boston College research paper from 2006, it’s a positive piece. The writer notes that after retirees have seen their stock portfolio’s drop, many may find tapping into their home equity to be an attractive option.
The writer questions what’s more painful… realizing the loss in one’s equity portfolio or home? It’s a fair question that I haven’t heard anyone address before. If you had to pay for retirement now by closing out a portfolio or taking a reverse mortgage on your home, which loss would be preferable, given a goal of maximizing likely retirement income? Leave your comments over at the Economist.
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December 2nd, 2008 at 8:34 pm (#)
That question has been answered, it didn’t need to be asked. Search for “pressure on the portfolio” and “reverse mortgage”.
December 3rd, 2008 at 11:01 am (#)
I have talked to 2 stock brokers recently who have refered me clients who do not want to drain thier stock portfolios, which have been reduced this year by over 50%.
These profesional advisors are just now realizing that a senior homeowner can swithc thier monthly withdrwals to thier REal Estate assets via a Govt guranteed loan at close to 3 % and allow the portfolio assets to recove value when the investment market turns around.
Has anyone seen an income projection comparison of drwaing $2000/month from the IRA VS $2000/month HECM.
I think more “financial planners” need to see this revelation.
Refernces or articles appreciated.