Reverse Mortgages As a Wealth Management Tool
The times are changing for reverse mortgages and it's about time. A program that was once viewed as a loan of last resort is now being properly included in discussions between financial planners and their clients. Reverse mortgages (aka HECM) are being utilized by homeowners in lieu of tapping into their retirement accounts early therefore allowing those accounts to mature further. In addition, funds from a reverse mortgage are tax-free unlike other asset accounts that carry tax consequences and penalties on withdrawals. A recent article in the LA times states, "The idea is that homeowners could tap the reverse mortgage for funds, especially in bad markets, instead of depleting their retirement accounts." If you are a homeowner 62 and older or a financial adviser who has clients that are, you should review all your financial options and include a reverse mortgage in the discussion. You can read more about the LA Times article here , and learn more about reverse mor