Archive for June 2009

Cash is King for Seniors

June 24, 2009

j0433118I love the phrase “Cash is King.” Who won’t accept cash? I suppose some would prefer us to use credit so they can increase profits, but the bottom line is, having cash puts us in a position of power. It holds much value, especially in an economy that we are in today. Cash is King!

When you think about it, reverse mortgages are simply a tool that will allow those 62 or older to receive cash by simply leveraging ones home. No risks, no losing your home to the bank, no payments, just plain “risk free” cash (Yes, Cash is King)! In fact, it can provide a guaranteed source of income for as long as you live in your home. How many of us prefer cash over credit? But when cash flow is limited, sometimes we make do with credit. This can be a short term solution, but a long term disaster!

Leveraging one’s home in order to access cash is the primary purpose of reverse mortgages. It simply is choosing to use the equity to secure interest payments so that you can use the available equity for life’s needs or desires. This is cash flow at your fingertips! No hassle, no worry, no fear . . . . just freedom!

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Reverse Mortgage Testimonial

June 15, 2009

Vodpod videos no longer available.

more about "Reverse Mortgage Testimonial", posted with vodpod

Home Equity: A Strategy for Improving Cash Flow

June 10, 2009

j0403058After spending a lot of time talking with many financial advisors over the years, one of the key barriers that prevent them from looking into a reverse mortgage for their clients was the idea that they didn’t believe using home equity was a viable solution for financial planning, or more specifically improving cash flow. Specifically, the organization that moniters compliance for financial advisors (Financial Industry Regulation Authority) has kept a close watch on the industry and how they use home equity. It is my understanding that they are particularly interested in preventing the use of home equity funds for investments, which makes sense. With poor investment strategy, this could be a nightmare for all parties involved.

However, it is becoming more and more of an option today for many advisors to seriously consider the power of reverse mortgages as a method to provide the cash flow in longevity planning. Retirement is changing today. Many (including myself) are looking at the very real picture of “retirement” and realizing that we may need to reconsider how this time of life will really look. In all reality, the working years may be prolonged as the need for cash flow increases in light of the recent market deterioration.

Financial Planning magazine, in their May 2009 issue, has an article titled From Irrational Exuberance to Unreasonable FEAR. In the article, which is really a roundtable discussion among several financial advisors, they discuss how retirement is changing and how creative measures, including reverse mortgages, are certainly a viable option to consider when looking for cash flow during the retirement years.

It is my belief that reverse mortgages are at the cusp of entering into more of a mainstream product. Much different than the current “last resort” product.

Living the Dream . . . No Mortgage Payment

June 2, 2009

42-15717839I remember as a young lad hearing about mortgage burning parties. It was the dream at that time. . .  to pay off the home prior to retirement and have no more mortgage payments. Today, though many in the younger generation have attempted to use home equity as leverage in creating wealth, seniors are continuing to live with the goal of paying off their home during or prior to retirement. This frees up cash so that they can afford to live a relatively similar standard of living in retirement as they had prior to retirement.

Reverse mortgages provide yet another option: Instead of waiting to payoff the last bit of mortgage balance, it allows them to take advantage of the freedom of having no mortgage payment . . .  gauranteed for as long as the home is the primary residence. In addition to having no mortgage payment, it allows them to use whatever is left over, as an emergency fund to take care of any of the surprises that life throws them.

For those who don’t have critical plans for the use of their equity after they pass, a reverse mortgage allows the benefit of realizing no mortgage payment coupled with a stash of cash to be used at the discretion of the homeowner. What a great alternative!