Posted tagged ‘independence’

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.


Check Out My Website

April 28, 2009

f0796_gullifordg1For years I have wanted to develop my own website that provides information about who I am and answers many of the questions that people have about reverse mortgages. I am proud to say that it has finally happened and much thanks goes to Rachel in marketing at Genworth Financial Home Equity Access. It is finally completed and looks great! Check it out at here!

My Longest Living Reverse Mortgage Client

April 25, 2009

FOW088My longest living client called me the other day. Three years ago I helped her with her reverse mortgage. At that time she was 96 years old. I met with her and her nephew and explained all of the benefits of a reverse mortgage, as well as all of the future implications. She had had her home free and clear and simply needed to supplement her income and have some money left on the side for emergency purposes. A very common situation.

Today she is 99. She called me and in her sweet voice said, “This is Mary Smith . . . do you remember me?” Well, of course, I remembered her. . . . how could I forget her? Though she is 99, she still gets around. Her favorite thing to do is to gamble. Now she doesn’t do it real often, but she has a friend that takes her to the casinos periodically. In fact, the last time she went she won $1,000. But of course, she decided to give it back.

One of Ms. Smith’s favorite things to do is to garden. Even at 99 she keeps up her yard, getting on her knees, and working the soil so that it produces the best harvest possible. She told me that she has done it since she was a little girl. Her mother taught her all of the ins and outs of gardening, and she still loves it today.

My favorite memory of Ms. Smith is how she gets around the house. Yes, she is 99, but she pushes a walker like there is no tomorrow. She knows where she wants to go and she gets there without a bump in the road. Ms. Smith also loves to do puzzles. I suppose that that is why she is so sharp. Her mind is incredible.

It is a gift to be a part of the lives of my clients. We talk periodically and I continue to assist them in any way that I can.  With all of the lender issues occuring today, they are often concerned that the economic conditions will effect their prized reverse mortgage.  I am always happy to tell them that they are safe and secure!

Independence is HUGE!

November 19, 2007

j0422587.jpgI sort of get a kick out telling people that I am in the reverse mortgage industry. The look on their face often resembles confusion. It is written all over their faces . . . . “Oh, you’re one of those guys.” I so badly want to respond saying, “No, no . . . . you don’t understand.” Because most people don’t understand.

Most people who know a little about reverse mortgages look at it from a financial impact. Questions about the heir’s inheritance or whether it is really a good financial decision for seniors, often is the turn that the conversation takes. Most people don’t understand the biggest issues that seniors face, and that involves their “independence.”

I have mentioned this in some of my other blog entries, but I can’t overstate this issue. The fear of losing one’s independence is huge. I know that people in my generation find it difficult to simply ask for help. You know the story . . . a project needs to be completed and having someone help complete the minor task would be a huge help. But, for some reason we just can’t get the courage to ask for help. This is usually a man’s problem. And compared to a senior’s situation, it doesn’t compare.

Consider a senior who finds it difficult to simply make the mortgage payment and have enough money left over to eat, or pay for the water, electricity, gas, etc. At some point in time, they get to a situation where they want to cry “help.” But they fear that they may lose their independency and become “dependent” on someone else, just to survive. Ugh . . . it can be debilitating for a senior and cause them great stress.

Reverse mortgages simply allow people to live at peace, and remain independent. Independent from their family, friends, the government, and have some control over their lives. To be dependent on anyone can be a humiliating thing for a lot of people. It can impact how one lives, where one lives, and the quality in which one lives. A reverse mortgage is simply a tool to help those who want to remain independent, an ability to do so, and live their Golden Years in Golden Ways!

I value your input and response to my blog entries. If you have a moment, feel free to reply and leave a comment. Thank you!