USA Today listed reverse mortgages among multiple potential options for retirees to build their nest eggs, specifically pointing to the Home Equity Conversion Mortgage’s line-of-credit feature.
Citing Kerry Uffman, founder of TWRU Private Wealth Management in Baton Rouge, La., writer Robert Powell positioned the product as a potential solution for long-term savings shortfalls.
“Having a reverse mortgage with a line of credit provides homeowner with money they can tap into later in life,” Powell wrote. “What’s more, Uffman says, the line of credit grows at a rate higher than that of a conservative investment portfolio.”
The USA Today piece also noted that homeowners with a HECM are not responsible for monthly mortgage payments, another key possible advantage for those who use the loans in retirement.
Among the other tips for soon-to-be retirees were delaying retirement in order to beef up savings accounts, boosting retirement-plan contribution rates, and potentially buying a longevity annuity product known as an ALDA — an advanced life deferred annuity.
But in general, the piece emphasized the importance of attacking retirement from multiple angles, and not using a single solution as a cure-all for an individual’s savings issues. Pointing to a recent report from Stephen Wendel, head of behavioral science at Morningstar, the USA Today piece urged Americans to take a holistic approach with a side of solid advice.
“For example, delaying retirement can be very impactful for one individual but not particularly effective for another,” Wendel wrote in his report, adding: “Personalized advice is essential to help Americans succeed.”
Written by Alex Spanko