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How would you react if a current client called you to say that he/she needed to pull out money from his/her portfolio on a regular basis just to fund everyday expenses? What would you think if someone asked for a LARGE amount of money, like several hundred thousand dollars, to use as a down payment on a new home?
Would you think that, even though this might not be a good idea, there is no other option? How would this withdrawal affect the rest of their portfolio and the plans you and the client had make for retirement? Do you have another suggestion you could offer them?
Enter the Reverse Mortgage program, an FHA insured, or JUMBO proprietary program, that allows borrowers to access money from their home’s equity which could help with the very examples described above Although, in the past, the Reverse Mortgage program has had a “bad rap”, now the program is being seen as a potential financial tool, along with other applications that you may be offering your client. Qualification is easy:
If you are not familiar with the inner workings of this program, please reach out to me. Reverse Mortgage Colorado works with two of the top Reverse Mortgage Investors who offer classes on how the Reverse Mortgage works as a financial tool in your world. Some of these classes are CE approved for CFP’s.
Below is an excerpt from an article written by Jamie Hopkins, Professor at The American College of Financial Services, Retirement Income Certified Professional program. This article, “Financial Advisors Should Avoid Error by Omission and Consider Reverse Mortgages,” appeared in Investment News on January 22nd, 2018. In it, Hopkins outlines why financial professionals, especially those with a fiduciary duty, should talk with their clients about, what is in most cases, their largest asset.
Hopkins states the reason to discuss reverse mortgages with clients, but also points out that not discussing this option can lead to possible liability. “The failure to plan or the failure to consider an option can also present a liability.” He reminds the reader how this was the case with long-term care planning. He recommends that financial advisors become informed about reverse mortgages and “be familiar with the research findings from experts like Wade Pfau and
Barry Sacks that illustrate the benefits of incorporating a reverse mortgage into a retirement income plan.”
Hopkins also reminds the reader that “even the Financial Industry Regulatory Authority Inc. states that reverse mortgages are a valuable planning tool in the right situation and should be explored by advisers.”
“Despite some substantial improvements over the past five years, the vast majority of financial services professionals still fail to incorporate home equity planning or reverse mortgages into their practices,” says Jamie Hopkins, professor at the American College of Financial Services, Retirement Income Certified Professional program. “And yes, this is a failure,” he continues, “In my opinion, not including home equity and reverse mortgages in the financial planning process is the largest failure of the financial services profession at this time.”
It would be my honor to work with you, and your clients to see if this valuable tool is a good fit for their personal needs.