Top Five Reasons Why the Affluent Want a Reverse Mortgage

May 26, 2023

Reverse mortgages have had a negative connotation that they are only for the seniors as a loan of last resort. Here are 5 reasons why the wealthy can use a reverse mortgage to enhance their estate planning.

We can loan up to $4M in Tax Free dollars using Jumbo Reverse Mortgages.

1. Tax free distribution

For every disbursement received from your retirement IRA, Sep-IRA, or 401K you will have an ordinary income tax due based upon your current tax rate. Alternatively, your reverse mortgage distributions are not taxable as income. This allows your current retirement assets to grow with re-investment rather than distribution until the mandatory distribution guidelines kick in.

2. Perfect Hedge against equity market swings

In these times of rising inflation and a Turbulent equity market, use your Reverse Mortgage irrevocable Nontaxable Line of Credit to allow your assets to Rest and Grow.

3. Rightsizing the household

When you sell your $1,000,000 home and pay off a modest $200,000 mortgage and closing cost you net about $750,000 before tax considerations. You could buy a new smaller Retirement Dream Home for $1,000,000 using a Reverse for Purchase put $500,000 down and still have $250,000 to supplement your retirement with NO Mortgage Payments. You must pay real estate taxes and homeowners ins. As you do now.

4. Optimize Social Security Benefits and retire on time

With a reverse mortgage you can delay the social security benefit start date until the maximum payout date. Use your reverse mortgage tax free distributions until you want to start up the social security for optimum benefits.

5. Start the legacy of your dreams

What if you gave a donation to your favorite charity while alive and had the ability to be a part of that mission? 

A reverse mortgage allows you to make the donation while living and reduce your income tax liability without having a monthly payment. Be part of your gift today rather than a plaque on the wall.

Make a gift to children and grandchildren today so you may see and enjoy the benefit of your gift.

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Retirement Dreams: A Conversation Starter for Your Clients

July 8, 2025
Your clients are approaching retirement. Their financial accounts are in order, designed to support them for years to come. But have you asked them about their dreams ? Retirement isn't just about managing assets—it’s about living life fully. Maybe it’s finally time for that dream vacation they’ve been talking about for years. Or perhaps the spouse who’s always loved painting now wants to rent a studio and pursue her passion more seriously. Start the conversation with meaningful questions: Do you have a hobby or passion you haven’t been able to fulfill? If money weren’t a concern, how would you spend your time? By accessing home equity through a reverse mortgage clients can unlock tax-free funds to pursue these dreams. Unlike a cash-out refinance or a traditional HELOC, this type of loan doesn’t require monthly payments and is specifically designed to support retirees. Proceeds can be received as a lump sum (after any existing mortgages and fees are covered), monthly disbursements, or as a growing line of credit. Sure, your clients could put that dream vacation on a credit card—but is that really the best choice? With average credit card interest rates hovering around 25% , and mandatory monthly payments, that dream vacation could end up costing them 125% or more over time. A reverse mortgage, by comparison, offers rates currently around 8%, with no monthly mortgage payment required , allowing your clients’ retirement savings to do the job it was intended for. Have a Reserve Fund for future needs or opportunities …Travel, Pamper yourself…..Why Not It’s Your Money Could This Strategy Benefit Your Clients? Let’s Find Out! Do any of your clients fit this scenario? Retirement in Reverse would be happy to provide a customized, hypothetical scenario to help you assess if this strategy could be a valuable solution. Let’s explore how we can make it work for your clients! Retirement In Reverse offers Objective, Competent Advice to help you make informative decisions for your clients. Furthermore, we have No Conflict of Interest, as we do not sell Financial Product, nor enter into financial planning engagements. We share your commitment to your clients’ financial stability and quality of life.

“When Your Client Has a First and Second Mortgage”

June 30, 2025
You’re sitting down for a regular financial review when your client opens up. “Honestly, inflation has really thrown off our monthly budget. We’re trying to stay ahead, but it’s tight—and we’re coming up short to close on the reverse mortgage we were considering.” After some discussion, they reveal they’re carrying both a first and second mortgage—and it’s that second mortgage payment that’s tipping the scale. They say: “If I could just get rid of the second, we’d be in a much better place.” This is your moment to dig a little deeper. Ask thoughtful, open-ended questions: “Are you comfortable with your monthly mortgage payments on the 1st loan?” “How would things change for you if you no longer had to make that second mortgage payment?” “If you weren’t sending that money to the bank each month, how would you use it instead?” These questions do more than gather facts—they invite your client to imagine financial breathing room. Possible Solution: A Second Reverse Mortgage In cases like this, a Second reverse mortgage , an exclusive program from one of our partners may offer relief. This product can be used specifically to pay off a second mortgage, freeing up monthly cash flow while allowing the client to remain in their home. No required monthly payments – unlike a HELOC or credit card, this loan doesn’t add pressure to their monthly budget. Fixed interest rate – clients can avoid the unpredictability of rising rates. No effect on the current first mortgage It’s not about taking on more debt—it’s about strategically restructuring it to work for them, not against them. In this scenario, the client chose to use Second Reverse Mortgage to pay off their second mortgage. The result? No more monthly payment on the second loan—and a noticeable difference in their day-to-day finances. Could This Strategy Benefit Your Clients? Let’s Find Out! Do any of your clients fit this scenario? Retirement in Reverse would be happy to provide a customized, hypothetical scenario to help you assess if this strategy could be a valuable solution. Let’s explore how we can make it work for your clients! Retirement In Reverse offers Objective, Competent Advice to help you make informative decisions for your clients. Furthermore, we have No Conflict of Interest, as we do not sell Financial Product, nor enter into financial planning engagements. We share your commitment to your clients’ financial stability and quality of life.
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