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What are the qualifications?

                   The youngest borrower on title must be 62 years of age or
               older. A non-borrowing spouse may be under 62.

                   The home must be the borrower’s primary residence.

               The home equity must exceed 40% in most cases,                            How can it be
               depending upon the borrower’s age.                                   used for retirement
                  The borrowers will undergo a financial review to ensure                     security?
               they are able to comply with the loan terms.

                                                                                      3 Replace cash reserves

           The Big Picture                                                            3 Eliminate monthly mortgage
                                                                                        payments** for borrowers and
                                                                                        help to increase cash flow

         Home equity is a dynamic financial tool that should                          3 Delay drawing Social Security
                                                                                        payments and pension
          be discussed with clients to help them reach their                            payouts
                             retirement goals.
                                                                                      3  Loan Proceeds are not
        PORTFOLIO SURVIVAL RISKS:            DEMOGRAPHIC STATISTICS:                    considered income and can
        1. LESS STRUCTURED ASSISTANCE        AMERIPRISE SURVEY 9                        be used as a tax-free income
        The shift from defined benefit       47% of respondents plan to use             supplement*
        plans to defined contribution plans   home equity to help fund their
        might affect the distribution of     retirement.                              3 Buffer spending of
        retirement income among baby                                                    investments in a down market
        -Social Security Administration 5                                             3 Cover unexpected gaps in
        2. MARKET VOLATILITY AND                                                        medical coverage, including
        SHORT-TERM THINKING                                                             long-term or nursing care
        Overreacting to short-term market
        volatility can endanger long-term                                             3 Provide a new way to diversify
        results.                                                                        wealth
                                             BOSTON COLLEGE CENTER FOR
        3. LONGEVITY About one out of        RETIREMENT RESEARCH  10                  3  Use a HECM for purchase to
        every four 65-year-olds today will   74% of retirees will fall short of         allow a client to purchase
        live past age 90, and one out of 10   their income needs at 62 years old.       a new home and save the
        will live past age 95.                                                          residual cash for other
        -Social Security Administration 6                                               investments

        4. TAXES The top marginal tax                                                 3  Enhance financial security
        bracket for many retirees in 2016              74%
        was 39.6%. Minimizing this tax                                                  without affecting some
        burden can help stretch savings.                                                benefits such as Social 7                                                            Security or Medicare

        5. HEALTHCARE Approximately
        70% of Americans age 65 or older
        will need some type of long-term                                                             HECM loans are a
        -Administration on Aging8                                             powerful financial planning tool that
                                                                   can turn home equity into retirement security.
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