WSJ: Reverse Mortgages Good In A Down Market

A recent article in the Wall Street Journal discusses the recent dip in the stock market and the impact on older Americans.  For people in their retirement years, "a fall in the stock market can be catastrophic because stocks can take years to recover from losses and you have fewer years left as you age."  During retirement, many people need to take withdrawals from their stock portfolio to supplement income, which only exasperates the decline in value of the portfolio during a down market.  WSJ interviewed Wade Pfau, a professor at the American College of Financial Services in Bryn Mawr, PA., who studies retirement income, and he believes that one solution is to consider taking out a line of credit with a Home Equity Conversion Mortgage (HECM), aka reverse mortgage. The HECM line of credit is insured by the federal government and it can be used during down times in the market to allow your stock portfolio an opportunity to recover.  This type of line of credit is protected from lender reductions or closure regardless of borrower inactivity or market conditions.  In addition, a HECM line of credit has a growth rate which allows for the available balance to grow over time.

Read the article here.

For more information on reverse mortgages and other related topics contact:

Rick R. Rodriguez
Certified Reverse Mortgage Professional, CRMP
NMLS# 473353
Toll Free (877) 500-0454
Local (702) 460-6222