Reverse Mortgages are generally looked upon as a vehicle to assist a person in distress or to provide a solution for an immediate problem but how about having it be part of your long term retirement planning and financial strategy.
The HECM (Home Equity Conversion Mortgage) Saver, a type of Reverse Mortgage, can be incorporated into your financial planning to offset the impact of future ups and downs in the market on your other retirement assets.
It can provide retirees with more efficient and effective distribution strategies and is a potentially important financial resource that often remains untapped. The proposed strategy works by only borrowing from the HECM Saver during bear markets in order to avoid selling assets at depreciated prices, thereby allowing the assets to recover before selling — focusing on the line of credit option of the HECM Saver as a substitute for a source of cash.