Study Shows Affluent Seniors Love Reverse Mortgages

/ / Reverse Mortgage

Reverse mortgages give affluent seniors important financial options when it comes to tapping into the equity in their homes.

But what kind of seniors value this flexibility the most?

Those counting their pennies?

Or those seniors considered “affluent” with a significant net worth?

A recent study published in the Journal of Financial Planning has surprising results, and some tips you’ll want to see.

Contributing Factors

The study noted that recent market volatility has destabilized the retirement plans of investors, potentially disrupting the income and quality of life for seniors.

This potential backwards step in lifestyle is especially difficult for affluent seniors with a net worth between $100,000 and $1,500,000. 

Rethinking Debt Strategy

The study also notes that for years, conventional wisdom has taught Americans that all debt is “bad”. But the data suggests that is no longer true.

Tools like reverse mortgages can serve as a “buffer asset” which can reduce exposure to risk from market volatility up to 10 times.

Using a reverse mortgage at the beginning of retirement provides a longer time horizon and higher benefits to retirees.

What About Other Seniors?

Seniors who are not considered affluent may benefit from a reverse mortgage in other ways.

Specifically, a reverse mortgage may potentially extend their investment portfolio so they don’t run out of money.

No matter what type of clients you serve or their financial situation, we want to help you give them all their options by fully understanding the benefits of reverse mortgages and how they apply to each person.

Please contact us today to learn more.