Reverse mortgages have a terrible reputation — possibly even worse than annuities. Despite their very real drawbacks, a reverse mortgage is often the best way for a retiree to tap into their home equity in order to fund spending without having to move out of the home.
This week, Dirk Cotton compares the pros and cons of two reverse mortgages strategies: taking out a reverse mortgage early in retirement and using that money to reduce the amount that is spent from the portfolio each year, or again taking out a reverse mortgage in early retirement but holding off on actually spending the money until it becomes clear that it’s needed (i.e., using it as a last resort).
- Reverse Mortgages: When the Last Resort is the Best Resort from Dirk Cotton
- Wells Fargo is Your Last Warning: Check Your 401(k) from Suzanne Woolley
- Do Clients Hire Advisors Simply to Pass the Buck on Blame? from Michael Kitces
- A Terrible Way to Protect a Retiree from Inflation from Bob French
- The Dying Business of Picking Stocks from Anne Tergesen and Jason Zweig (If you are not a WSJ subscriber, you can Google the title of the article in order to read it.)
Other Money-Related Articles
- Fee-Only Insurance Advisors from Jim Dahle
- 10 Reasons to Go for Early Financial Independence from Jim Dahle
Thanks for reading!