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EPISODE #748
Should I plan to liquidate my IRA and get a reverse mortgage?
[NewJersey-com ] One reader asks a local financial columnist if it’s better to liquidate her IRA as her own private reverse mortgage. The implications are stark…
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2 Comments
E-#748- Excellent podcast. People are postponing their retirement. A reverse mortgage is truly a financial planning tool.
Many have pointed to Canada as providing better “equity release” products than the US. The proposed 65% limit under consideration in Canada once again shows why the HECM is superior to all other reverse mortgages within the principal limit ranges it allows.
As to the inevitability of housing wealth becoming a part of financial retirement planning, that seems more industry hype to excite industry origination morale than reflect current attitudes of the more sophisticated financial advisers. In many parts of the financial services industry even annuities (except for use in terminating defined benefit retirement plans) are looked upon as more commission driven gimmick than sound cash flow providing product. So why would RMs fare any better? By and large, do you really think that more sophisticated financial advisors trust RM originators any more than annuity salespeople?