A reverse mortgage can be part of a real retirement strategy.
It's one more tool for managing income, taxes, and timing, alongside everything else already in your retirement plan.
The growth feature of reverse mortgages
Once you open a HECM line of credit, HUD guarantees it grows every year at the same rate as the interest charged on your balance, whether or not your home appreciates, even if the market drops.
It's not tied to your home's value. It can't be frozen or reduced. Open a line early and leave it alone, and you can end up with significantly more available credit down the line than what you originally qualified for, without refinancing or reapplying.
Protecting your investments in a down market
If you pull from your investments
Locks in losses
Shortens how long that money lasts
Often means a tax bill
If you pull from your home equity
Nothing sold, nothing taxed
Your investments stay put
They get time to recover
Used at the right moments, that difference can mean the gap between selling low and letting your investments recover on their own timeline.
Managing Sequence-of-Returns Risk
In a down market, pulling from invested assets locks in losses and cuts into how long those assets can last. Funds drawn from a HECM line of credit aren't a taxable event, and they don't require selling anything. Used at the right moments, that gives you a way to cover expenses without touching your portfolio while it recovers.
Bring the Numbers to Your Planner
A guaranteed growth rate on a line of credit, funds that aren't taxed, a way to leave investments alone in a down market: that's worth putting in front of someone managing your retirement plan.
I'll work directly with your financial planner, so between the two of us, you've got the full picture.