Today’s reverse mortgage loans have built-in protections designed to make sure the loan is a sustainable solution for the borrower. In this article, we’ll explore what a life expectancy set-aside (LESA) is, how it helps a borrower to pay property charges, when the lender’s underwriter will require it, and why, in some situations, it may be advantageous for a reverse mortgage borrower to voluntarily opt for a LESA.
6 min read
What is a Life Expectancy Set-Aside for a Reverse Mortgage Loan?
Topics: Retirement Planning Retirement Reverse Mortgages Limited & Extended Care Planning Center
8 min read
Inflation Presents Unique Challenges for Retirees
Home Wealth Can Help Your Older-Adult Clients to Fight Inflation.
These days, inflation is on the minds of most people — and it is of particular concern for seniors. With prices rising at the fastest pace in decades, many people who are in or nearing retirement have heightened fears they may outlive their savings.
The stage is set for home wealth, which has also been on the rise, to play an important role in helping retiree homeowners to support a more efficient retirement income strategy. As a financial professional, you want to give your clients the best chance at financial success, which is why it is imperative that the strategic use of home equity is part of any retirement-planning conversation.
Topics: Retirement Planning Retirement Reverse Mortgages Retirement Plans
8 min read
Home Equity Conversion Mortgage (HECM) Loan: What You Need to Know
While there are several different types of reverse mortgages, most reverse mortgage loans today are HECMs—the only reverse mortgages insured by the Federal Housing Administration (FHA).
Many financial professionals now consider today’s HECMs to be an important and effective tool (when used within a comprehensive financial plan) to help improve retirement outcomes for their older-adult homeowner clients.
Topics: Retirement Planning Financial Planning Planning in Advance Retirement Reverse Mortgages Financial Literacy Potential Partners for Advisors
4 min read
Retirement Regrets – Does Retirement Live Up to Expectations?
Ah, retirement. The reward at the end of years in the labor force, of saving and investing and planning for financially sound, restful, and even adventure-filled golden years. Millions of Americans enter retirement annually, but increased reliance on Social Security income and Covid-19’s impact on employment, access to social supports, and mental and physical health have altered the retirement experience for retirees across the U.S. With retiree numbers significantly increasing in the last year and predictions of more to come at an accelerated rate, we wanted to know if retirement still lives up to expectations. Are retirees experiencing the retirement they expected, or do they have regrets?
Topics: Life Insurance & Annuities Retirement
1 min read
Special Webinar: The Psychology of Retirement (1 CFP credit)
NAIFA's Limited & Extended Care Planning Center partner, Mutual of Omaha Mortgage, will be hosting an exclusive webinar on Thursday, August 19th at 2 pm eastern. Join Robert Laura, AAMS, CPRC for "The Psychology of Retirement." Explore the psychology of retirement and how to win at retirement by developing a new mindset. This program has been approved for 1.0 hour of CFP credit.*
Topics: Retirement Potential Partners for Advisors
1 min read
Exclusive Webinar: Using Housing Wealth to Improve Financial Outcomes in Retirement
As clients retire, and hence end the receipt of regular income from employment or professional activity, cash flow considerations become paramount. This webinar examines four situations in which home equity can be used to diminish retirees' risk of cash flow exhaustion while maintaining an acceptable level of living expenses.