Professional Advisors

Professional Advisors

posted on 02.09.2016 by admin

Financial Planners, Elder Attorneys and Accountants face a dilemma seeking solutions to eliminate the anxiety and fear, even mass-affluent Boomers and Seniors feel about outliving their investments and savings in retirement. These solutions often involve finding a balance between very competing goals. Professionals need answers to questions posed by clients, such as: will they be able to maintain their standard of living; will they have access to liquid funds when they need it without negative tax consequences; and lastly, will there be anything left to leave their heirs? Most recently, there is a solution recognized by retirement planning “thought leaders”. That is, using the FHA insured Home Equity Conversion Mortgage (HECM) to tap the $4.13 trillion of available housing wealth and its suitable use in retirement income planning.

The HECM product can provide clients with a tax-free stream of cash payments, a lump sum or growing line-of-credit. Proceeds from a HECM can be used for a variety of purposes all while preserving other assets under management, such as:

  • Coordinated strategy of HECM and portfolio withdrawals to minimize sequence of returns risk
  • Payoff mortgages or other debt to eliminate monthly payments
  • Funding Long-term Care Insurance Premiums
  • Cash-flow neutral means of splitting up the housing asset in “Gray Divorce” situations
  • Postpone taking Social Security until age 70 to maximize benefits
  • Fund tax obligations incurred by 401k / IRA Rollovers into Roth IRAs
  • Establish a growing standby line of credit for unforeseen expenses or emergencies
  • Purchasing a new home with as little as 40% down
  • Provide a last resort “safety net” for those retirees who have exhausted other financial resources.

Contract us to get the full details on how the Home Equity Conversion Mortgage can be an important tool in your client’s financial future.