Reverse Mortgage protects retirement portfolio.
There have been suggestions recently that people nearing retirement age should take out a home equity line of credit to borrow against in this tough time. The bank offered Home equity line of credit has a monthly payment and must be paid back in full in 10 years, furthermore Chase Bank and other large banks during the Corona virus have stopped taking applications for HELOC loans and frozen many peoples credit lines. With a home equity conversion mortgage (HECM) otherwise known as a Reverse Mortgage, once it’s taken out, the amount is the amount that’s always available; it can never change, the loan can be paid back at any time or doesn’t need to be paid back until you leave the house. During the last economic crisis from 2007 to 2010, many financial planners we are recommending to their customers to use the Home Equity Line Of Credit versus selling off stocks or messing with their portfolio, because we all know it will rebound eventually. Thus was a way to have money during a down economy, but then the customers became tired of making the monthly payments and began to get (HECM) Reverse Mortgages which have a growing credit line which continues to grow over time and protects your retirement portfolio! This also allows people to have money to live on and spend without touching in their portfolio during the bad times!
Now during the coronavirus pandemic financial planners, several huge magazines such as USA Today, The Street, and Nasdaq are running articles on protecting your retirement portfolio as a great way to protect your retirement. There is a 30-year scenario showing someone using a Reverse Mortgage credit line only during bad times done by some of today’s best economists. This is called the Sequence of Returns.
