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HUD’s Inspector General points to remaining HECM issues
HUD’s Office of the Inspector General (OIG) pointed to a handful of continuing issues that undermine the FHA insurance fund. One of them, not surprisingly, deals with violations of HUD’s HECM occupancy requirements…
11 Housing Markets With the Most Sellers Dropping Prices
This is still a great opportunity to consider a reverse mortgage
Sequence of returns are not the sole reason that investment portfolios lose market value. Just look at the dot com companies and related stocks of the 1990s. While a very small number of the dot coms have been wildly successful, like gold and silver mine stock offerings in the early 1920s, the underlying business of those stocks had little substance. Sequence of Returns was not the sole source of loss in those stocks. The losses from those shares will NEVER turn around. Again, in 2008, stocks like Lehman Brothers fell and will not recover.
In listening to three presentations on the use of Reverse Mortgage proceeds to mitigate the impact of market losses, no effort was made to distinguish temporary losses from permanent losses. Those of us with a history of working with the investment portfolios (not those held in plans governed by ERISA) of individuals understand the principle of harvesting for capital losses before the end of a calendar year. That chore can yield much cash flow from both the harvesting sale of such securities but also lower income tax liabilities. I am befuddled why those from our industry who claim to have been financial advisors in their earlier careers do not distinguish between permanent and temporary losses when presenting the mitigation of the risk of loss from Sequence of Returns on investment portfolios (not overseen by the DOL.