Page 6 - Reverse_Mortgage_Loan_Retirement_Planner

Ways to use a

reverse mortgage for
retirement planning

“Using a reverse There are three main ways
mortgage to delay
taking Social a reverse mortgage loan
Security is a very can be used to help provide
powerful tool. additional retirement
Determining when to
take Social Security security.
is probably one of
the most important
decisions a retiree 1. Delay Social Security benefits and
makes because it’s let investments grow
lifetime income.
So, if you can use Using this approach, a reverse
reverse mortgage mortgage loan is established at the
proceeds to delay outset of retirement and drawn upon
taking Social
Security benefits every year to provide retirement income
for as long as until exhausted, allowing the retiree’s
possible, that may investment portfolio, such as a 401(k)
provide you plan, more time to grow. Subsequent
with greater monthly withdrawals are then made from the
income.”
portfolio. This strategy also enables
the retiree to delay accessing Social
Security benefits, thereby increasing
their monthly payments later in life.

1 This example is based on a loan with a monthly
adjusting variable rate feature, a borrower age 62 and an
Barbara annual percentage rate of 14.693%. There are no liens
on the property to pay off, or set asides for repairs, taxes,
Howard or insurance. Proceeds will be affected by the appraisal
and costs associated with obtaining the loan. The APR
may be increased after consummation. Social Security
2
Professor, benefits calculator from www.bankrate.com/calculators/
Gerontology retirement/social-security-benefits-calculator.aspx
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