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Better Money Decisions

You’ve probably started with great intentions, telling yourself you’ll stash away more for retirement and buy fewer lattes (because some writer said buying lattes is a bad thing). But life happens. It’s not as neat and tidy as the financial experts on TV seem to think. You’ve got a lot going on in your life, and you need more than simplistic, cookie-cutter instructions to keep you on the right financial path. Kate Stalter escorts you to the right path for your money. She talks to experts and "normal" people who have taken the right steps to make better money decisions.
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Now displaying: March, 2018
Mar 5, 2018

Today we're going to be talking about whether or not a Reverse Mortgage is a good idea. This is a topic that there's a whole lot of misinformation about, so Kate has a fantastic guest on the show, to give you the truth of it. Wade Pfau actually wrote a book about the topic, so listen in as he clarifies this for you today.

Wade, who's a Ph.D and a CFA, has been interviewed by Kate before, for US News and World Report. Wade is a Professor of Retirement Income in the PhD Program for Financial and Retirement Planning, at the American College of Financial Services, in Bryn Mawr,  Pennsylvania, where they offer a lot of great courses, in the Financial Services arena. Wade also serves as a Principal and Director of Retirement Research for McLean Asset Management and he hosts the Retirement Researcher website, as an educational resource for individuals and Financial Advisers. He also holds a Doctorate in Economics from Princeton and he frequently publishes in a number of Academic and Practitioner Research Journals. Listen in to get the truth about Reverse Mortgaging.

 

Show Highlights:

  • Wade discusses some of the more common misconceptions around the topic of Reverse Mortgages.
  • There used to be high costs involved in setting up Reverse Mortgages, but if you shop around a bit, you can find lower cost versions, now.
  • Wade talks about the risk of foreclosure, due to people not being able to keep up with the property taxes and the other costs of keeping the home.
  • Using a Reverse Mortgage, as it's been written about in the Journal Of Financial Planning, as part of a strategic and responsible Retirement Income Plan.
  • Wade gives a short tutorial on how a Reverse Mortgage works
  • A nice planning trick- If you open a Reverse Mortgage and don't borrow much from it right away, your line of credit grows instead of the loan balance. This can create a lot of options for you, for later on, in your retirement.
  • Wade discusses who the best (or the worst) candidates are, for a Reverse Mortgage.
  • Wade talks about the idea of getting people to think about incorporating this strategy with overall Retirement Planning.
  • Four general ways to manage a Sequence Of Returns Risk: 1) Spend conservatively. 2) Be very flexible with spending. 3) Eliminate volatility from the portfolio. 4) Have a buffer asset. 
  • How a Reverse Mortgage would fit for someone who's looking at self-financing a Long-Term Care Plan.
  • You have to be living in the home, to maintain a Reverse Mortgage.
  • Some of the 'big picture' things that you should be aware of, when considering a Reverse Mortgage.

 

Resources:

Wade's website: www.retirementresearcher.com 

 

 

Wade's book, Reverse Mortgages- How To Use Reverse Mortgages To Secure Your Retirement, is available from Amazon.

 

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