![]() He holds a doctorate in economics from Princeton University and has published more than sixty peer-reviewed research articles in a wide variety of academic and practitioner journals. Wade Pfau, Ph.D., CFA, RICP Using Reverse Mortgages In A Responsible Retirement Income Plan Though reverse mortgages have long held a bad reputation, research and public policy in recent years are shedding new light on their potential uses in retirement. As well, he is a Principal and Director for McLean Asset Management and RISA, LLC. Pfau, Ph.D., CFA, RICP®, is the program director of the Retirement Income Certified Professional® designation and a Professor of Retirement Income at The American College of Financial Services in King of Prussia, PA, as well as a co-director of the college’s Center for Retirement Income. Read millions of eBooks and audiobooks on the. This is an excerpt from Wade Pfau's book, Reverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement (The Retirement Researcher's Guide Series), available now on Amazon. How to think about the reverse mortgage line of credit as a form of insurance to protect against market losses or declines in the home value. Read Reverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement by Wade Pfau with a free trial. ![]() Ways to coordinate the line of credit use with distributions from the investment portfolioĥ. The basics for how reverse mortgages workĤ. An overview of retirement income planning, which sets the context for understanding the potential role of reverse mortgagesĢ. In “Fitting Home Equity into a Retirement Income Strategy" by Wade Pfau, you will learn:ġ. ![]() Financial advisors must pay attention to their client’s home equity, as this is a vital asset that can be used as part of a coordinated strategy to improve retirement outcomes. The reverse mortgage option should be viewed as a method for responsible retirees to create liquidity for an otherwise illiquid asset, which in turn can create new options that potentially support a more efficient retirement income strategy (more spending and/or a greater legacy). This is not the appropriate way to think about reverse mortgages in a retirement income plan, especially in light of recent research. I have created a calculator that allows users to get a sense of the principal limit available with an HECM reverse mortgage on their home using the most popular one-month variable rate. In the early days, reverse mortgages were generally treated as a last resort option after other resources were depleted, or as a way to obtain quick access to a large lump-sum of assets. Subscribe to The RMD Podcast to be notified when new episodes are released.How can reverse mortgages be used to better secure retirement?
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