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.

Reversing insecurity

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