Give your clients age 62+ the financial flexiblity they desire. ◆ Page 9
Potential Benefits to Your Clients*: 1.
Refinance standard mortgage to a reverse mortgage to eliminate the burden of monthly mortgage payments. Still required to pay property-related charges, like taxes, insurance and home maintenance costs.
2. Use the HECM line of credit’s growth feature as a way to establish a financial safety net. The unused funds in the line grow at the same compounding rate (interest rate plus 0.50%) as the loan balance. This means your client will have more funds to draw on in the future when needed, such as to pay for health care expenses. 3. Standby portfolio protection — use a reverse mortgage as a cash management tool in stock market down times. This can make investments last longer while net worth will not necessarily decrease. 4. Replaces need for cash reserve bucket – home loans are not taxable income. Can increase cash flow and peace of mind. 5. Can use loan proceeds to purchase long-term care insurance. 6. Use it as a management tool to receive deductions when needed or if client wants to withdraw less from IRAs and other taxable sources, lower taxes and preserve their portfolio, reducing the risk of outliving their savings. 7.
Gifting to family – help family members in need or simply leave a larger legacy.
8. Donating to non-profits so they can enjoy gifting while they’re alive to see the results.
*This advertisement does not constitute tax and/or financial advice from Fairway.