Susan B. Garland, in his New York Times article, discusses the advantages of reverse mortgages. His article, “What Retirement Means for Your Taxes”, begins as follows:
After her husband died suddenly from a fall in 2016, Marjorie Fox decided to hold off on any big decisions. She waited two years to retire as a financial planner and three to sell their house and buy a lakeside townhome in Reston, Va. For added protection, she took out a reverse mortgage on her new home.
Ms. Fox, 75, had set aside $150,000 in a cash reserve, and the reverse mortgage was another backup. If something unexpected did happen, “it could be when the stock market is down and it could be an inopportune time to sell assets,” she said. Reverse mortgage borrowers can take the money as a lump sum, as fixed monthly payments or as a line of credit. Ms. Fox chose a line of credit, which she could tap as needed.
To see the full article, click: “Reverse Mortgages Are No Longer Just for Homeowners Short on Cash”
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal