The 19 Sources of Retirement Income: The Reverse Mortgage Explained

Welcome to the Wealth under Pressure Podcast. John Smallwood, a certified financial planner, identifies key areas of pressure on your wealth and strategizes with you to reduce it.

In this episode, John continues his series on the 19 Sources of Retirement Income, discussing the power of a reverse mortgage to provide a guaranteed income stream in retirement.

John is the author of 5 Ways Your Wealth is Under Attack and It’s Your Wealth – Keep It.” He has lectured extensively on financial planning and is a recipient of the Five StarSM Wealth Manager Award.

How a reverse mortgage can work for you:

• A reverse mortgage is just what it sounds like: rather than you paying the bank, the bank pays you.
• If your home is paid off, or if you have a lot of equity in it, a home equity reverse mortgage gives you a certain percentage of your equity as income. You can choose the type of payout you want: lump sum, monthly, or a hybrid.
• The income is tax-free, although there are associated fees.

Also know:

• It is a powerful way for you to turn your house into an income-producing asset, but it’s only available to people age 62 and older.
• The caveat is eventually the bank will own your house. You will not be able to pass it on to your heirs.
• If you know your heirs will want the house, one option is to plan to use your life insurance death benefit to pay off the reverse mortgage.
• The reverse mortgage is a great tool to generate sustainable tax advantage, tax-free income, and—in combination with tax free life insurance dividends and life insurance death benefit—a way to dramatically increase your retirement income.

We advise you to consult a reverse mortgage specialist who can walk you through these complex but powerful loans.

For more, listen here. Then visit us at smallwoodassociates.com. Download our 19 Sources of Retirement Income and find out more ways to increase your retirement income.

If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here.

You can also connect with us on social media, or call us at (800) 797-1000.

Set up a free, no-obligation 30-minute phone call with an advisor. It may be time to discuss reverse mortgages, life insurance dividends, and many other ways to fund your retirement.

Podcast: Play in new window | Download

Subscribe: RSS