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Smart Financial Plans Many Times Include a Reverse Mortgage

Smart Financial Plans Many Times Include a Reverse Mortgage    

Traditional retirement planning involves many assumptions- like rates of return, life expectancy, and risk tolerance – and these assumptions will vary by individual and by financial planner to planner.  However, there is one assumption that rarely changes. Almost every experienced financial planner believes that you should withdraw no more than 4 percent of your investment portfolio every year.

Statistically, the 4 percent withdrawal rate has a 90 percent chance of making your money last at least 30 years.  The problem many retirees face is that 4 percent isn’t enough to live on.

In Reversing the Conventional Wisdom: Using Home Equity to Supplement Retirement Income, a recent article in the Journal of Financial Planning, lawyer Barry Sacks and his economist brother Stephen Sacks showed that including a reverse mortgage in the retirement planning process makes a big difference in potential income.

By adding the value of a reverse mortgage to a portfolio, the authors found retirees could increase their income, maintain a steady income and enjoy more financial security…and now a new lower cost structure by the government makes it easier than ever to secure a reverse mortgage.

Find out how a government-insured reverse mortgage can be an important addition to your smart financial plan.

Reverse mortgages apply in the opposite principle of a traditional forward mortgage. In a traditional mortgage, you use your income to earn equity in your home; and in a reverse mortgage, a home loan turns equity into cash or income.  Moreover, with a reverse mortgage, you are never required to make a payment on the loan for as long as you live in that home, and you always retain title and ownership of the home.

Valley seniors are increasingly discovering the benefits of reverse mortgages and they are turning to Sun American Mortgage Company for help.  Sun American, one of the Farnsworth Companies, offers expert advice on reverse mortgages as part of a smart financial plan.  Sun American wrote the very first reverse mortgage in Arizona over 25 years ago, and they still perform more in home, cost free visits to Arizona seniors than any other reverse mortgage provider in the Southwest.

Did you know you can use a reverse mortgage to purchase a home?   Yep…no payments.

Give me a call today and we’ll discuss all your options, or visit my webpage at: https://www.sunamerican.com/members/parkerturk/

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