Is retirement planning broken?

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Reverse Mortgages For Retirement Planning

Reverse Mortgages For Retirement Planning

A recent Wall Street Journal article tests the traditional 4% rule of retirement planning. Surprisingly reverse mortgages are mentioned as part of the possible solution. Watch the video about the 4% Rule …is it broken?


James E. Veale, CPA, MBT March 19, 2012 at 2:45 pm

Today cash sources are at a premium. A HECM is a particularly good source of cash. The trouble with most uses of the HECM in financial planning is when a borrower is self-directing the entire asset management situation. Like attorneys who represent themselves, these seniors have a “fool” for a client.

The best advice for seniors who have a retirement portfolio, retirement plan assets, and the need for an additional source of cash inflow such as through a HECM is for them to obtain asset management advice through a competent and reputable CFP. Make sure the CFP understands the Dr. John Salter approach so that the HECM is not automatically the choice of last resort.

This is a different age and HECMs are being classified as a far more useful retirement tool than financial planners classified them in the past.

Shannon Hicks March 19, 2012 at 2:50 pm

Thank you Jim. Very well said. The key component is a qualified CFP working on the retirement picture as a whole.

Bill Danner March 26, 2012 at 7:02 am

Shannon. This is spot on for our time and market. If you could do more in this genre it would be very good and helpful. I look forward to my Reverse Fortunes each week, sometimes to jump start my “engine”.to be creative and bring a different perspective to the market place. Thanks


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