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Can Reverse Mortgages Help You Protect Retirement Savings in Bad Markets - YouTube

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this is one of a series of educational

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videos I've created on how reverse

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mortgages can be used as a significant

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retirement planning tool hello I'm Joe

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ket I'm a retired financial adviser for

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over 35 years I managed or trained

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hundreds of financial planners and

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successfully advised thousands of

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clients shortly after my retirement I

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found a new career as a reverse mortgage

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specialist and I actually bought the

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house i live in with the reverse

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mortgage can a reverse mortgage help

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retirees to work through market drops in

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more effective ways we all remember how

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stock markets collapsed in 2008 we saw

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real estate markets that left millions

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of homeowners fearing for their future

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although the drop in home values was

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building through years of bad economic

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policy the actual collapse happened in a

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shockingly short period of time in fact

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one day is all it took for buyers to

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almost completely disappear home values

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had risen so far so fast because banks

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were giving out mortgages without regard

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to qualifications or the ability to

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repay banks were encouraging people to

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pay off ever-growing debts by

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refinancing mortgages into higher and

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higher mortgage debt that sucked equity

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right out of their homes when the US

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Federal Reserve had to force the

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bankruptcy of wall street titans like

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Bear Stearns and Lehman Brothers the

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stock market had its largest one-day

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drop in history having a reverse

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mortgage averted financial disaster for

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many retired homeowners in the

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government insured reverse mortgage

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retired homeowners have some very

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important protections the best-known

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benefit of reverse mortgages is the

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elimination of any existing mortgage

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payment by transferring current

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mortgages to a special non-recourse loan

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within the reverse mortgage package

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retirees did not need to make payments

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from their monthly income from pensions

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and social security even in the worst of

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times government insurance assures that

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benefit will never

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be taken away for as long as you live in

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your home another lesser known benefit

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sets aside a credit line a pool of cash

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which can be drawn in the future even if

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cash is not available elsewhere unlike

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traditional credit lines the ability to

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withdraw funds can never be taken away

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even if real estate values collapse this

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cash set aside also has a growth

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provision ensuring that the available

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funds will grow each year they are not

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used the funds will actually grow at the

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same percentage rate as the mortgage

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portion of the Home Equity Conversion

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mortgage the official name of the

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government's reverse mortgage program if

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home values rise the home owner's equity

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stays with them and if on values drop

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the FHA ensures that set aside funds

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will not only be there for future needs

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they will also grow so in good markets

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and bad cash is always available and the

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available cash is insured to grow each

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year as a result if homeowners are

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relying on their investments for

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retirement income they will not need to

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sell at the worst time to sell in 2008

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while people were losing homes because

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of the market collapse those with this

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government insured program were

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protected why because they had no

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mortgage payments and had easy access to

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cash when others didn't bear markets and

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stocks and real estate happen fast not

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needing to sell homes or stocks at the

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worst time as a true benefit if you want

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to know more about other retirement

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strategies you can call either me jo ket

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or my partner chris nair call one eight

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hundred traveled Joe that's me or go to

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my website at retirement advocate.com

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and we'll send you the US government's

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book called use your home to stay at

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home we do not sell we advise and

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consult you'll find out why I have a

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hecka Mon my own home in how I use it in

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my own retirement planning thanks for

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listening and subscribe to my youtube

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channel

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