The line of credit feature on a reverse mortgage can be a valuable retirement asset to help retirees fund longevity, and that’s the angle American Advisors Group (AAG) has taken in its newest TV spot featuring company spokesman Fred Thompson.
Titled “Line of Credit,” the 120-second commercial is airing now and is also the first of three advertisements scheduled to run over the next quarter that depicts reverse mortgages as a retirement planning tool.
In the ad, Thompson highlights the reverse mortgage line of credit for senior homeowners who are looking for added financial security that can assist them when it comes to paying for unexpected expenses like home repairs, medical treatment or in-home care.
“The most important time to have cash available to you is when you need it,” Thompson says in the commercial. “And more people are using a reverse mortgage line of credit for just that—a line of credit that makes cash available for life’s unexpected turns, or just additional security that grows until you choose to use it.”
For retirees living on their investment portfolios, the use of a “standby” revers mortgage line of credit to draw from during market downturns is especially relevant in light of recent market changes, AAG notes.
“This strategy allows for portfolios to rebound over time by providing an alternate source of cash flow without tapping into investment funds,” AAG stated in a release. “As always, borrowers are encouraged to review this and other financial strategies with their advisors.”
The line of credit strategy has garnered considerable press and acceptance by financial experts like Professor Wade Pfau of the American College of Financial Services, who in a recent Wall Street Journal article, indicated that a reverse mortgage line of credit can help buffer against market swings.
The new commercial helps build awareness about the reverse mortgage line of credit as part of a smart retirement planning strategy for seniors, says Teague McGrath, chief creative officer for AAG.
“While many homeowners may not know about the flexible financial options reverse mortgages provide, AAG is working to educate older Americans about this popular loan for those age 62 and over,” McGrath said in a written statement.
“Line of Credit” will run across cable and national networks including ABC, NBC and CBS.
Written by Jason Oliva