Financial Risks & Reverse Mortgages
HTML-код
- Опубликовано: 10 сен 2024
- A reverse mortgage is so much more than a desperate attempt to get money. They can and are being utilized, strategically, to help mitigate many financial risks in retirement. In todays video, we discuss how a reverse mortgage does this and how you can even use a reverse mortgage to increase the inheritance to heirs.
Video Link Mentioned in Video:
Most Powerful Reverse Mortgage Feature (Reverse Mortgage Line of Credit):
• Most Powerful Reverse ...
Like our video and subscribe to our channel for the most up to date and in depth information about reverse mortgages.
If you or someone you know has questions about a reverse mortgage, give me a call. I'm always happy to educate you about your options and help you determine if a reverse mortgage is a good fit.
We are currently licensed in Arizona, California, and Colorado.
Taryn Proctor
(888) 982-0475
rheadvisors.com
info@rheadvisors.com
NMLS: 1457445 | DRE: 02116203
Branch NMLS: 2134579
Thank you so much it’s been so much information that has helped our situation thank you again have a great day
My pleasure! Happy to help.😊
As always, Karen superb videos I’ve been thinking about reverse mortgages since I was 50 and now I’m 67😊
Thanks so much for the compliment! And so glad you are enjoying the videos. :-)
I'm 66, central Phoenix house, no loan, single, very healthy, retired 21 years ago. Goal of waiting until 70 to take SS but running low on cash
Sell and I get a $500k lump sum. I can invest and get maybe a 5% return some of which could be taxed. I have to manage my investments.
Rent for $2000-2500/mo I get a nice income stream plus appreciation. I have to manage the rental. Should be tax free mostly as I can depreciate the house which but that would increase cap gain tax if ever sold. I get no lump sum so I could get into a bind if some major repair was needed, etc..
My solution...remodeled the house so I have a separate 1/1 apartment for me. Downsize in place. Love my garden so I get to keep that. Rent the main 3/1 part of the house for $2000/mo. Take a reverse mortgage to get a "lump sum" that's plenty big enough for my needs.
The reverse mortgage line of credit costs me $20k in fee...but only if I ever sell the house. The line of credit is really only a security benefit. I can rest easy knowing if I ran a little short I would be fine. That's worth something. Allows me to wait until 70 to take SS which in today's dollars is $800/mo more.
The negative amortization on that $20k makes the pay off after 15 years $53k at 6.5%. In 5.5 years the extra SS $800 will have covered that $53k so 9.5 years * $800 is an extra $91k.
Seems like a good deal to me. My total spend for the past 10 years has been $600/mo. So $2000/me rent income while staying in my house plus the line of credit will be good security. Then my income jumps to $5600/mo at 70. My plan is to travel to SE Asia and hopefully buy some land, build a house. The line of credit allows me to do that without forcing me to sell my Phoenix home. I do have to live in the Phoenix house 6 months of the year but I very much like the idea of only spending 5-6 months a year in SE Asia at least for some number of years. If lucky enough to live until extreme old age I may stay in SE Asia where great live-in caregivers are $500-1000/mo. Housekeepers $100-200/mo. At that point the equity in my Phoenix house will be plenty for me even after paying off the reserve mortgage.
There are many advantages to reverse mortgages but wow it takes some serious thought. It's so different from every other instrument I've ever used or learned about. And also being realistic about mortality and switching my thinking from earning to spending is all new to me. Although retired 21 years that was all about keeping expenses low while increasing freedom and happiness. This next part requires more traditional retirement thinking.
Just working though the numbers. Typing it helps me think.
Concerns about leaving money to heirs seems very silly to me. I've never personally seen an heir ever use an inheritance well. Often causes problems. I don't have kids so no idea who I'd leave it to. Possible I'll get married in SE Asia to a women much younger than me. She would be set for life if she manages well what I leave even with the reverse mortgage.
Hi! Thanks so much for the comment and for such an amazing break down of your thought process and how you have approached this product. I think it's incredible for people to see this and I imagine your comment will help a lot of folks to think about this product less conventionally. Because you are absolutely correct, it's different than anything else out there and although it takes some change of thought, once you have a good grasp, you see there are so many different potential applications. Please don't hesitate to reach out if I can help with any of your reverse mortgage needs. We are located over in Gilbert, so not too far from you. 😀 (888) 982-0475.