Reverse For Financial Planning

Reverse For Financial Planning

Incorporating the Reverse Mortgage Loan into an Existing Financial Plan

The Reverse Mortgage loan can play an important role when used as a component in the senior’s overall existing financial plan. The concept is to utilize the proceeds from the Reverse Mortgage before tapping into the investment portfolio. Additionally, the tax free* monthly stream of funds from the Reverse Mortgage loan allows for the senior to postpone receiving Social Security income to maximize that benefit at a later age.  (* We suggest you consult a Tax Professional for your exact situation)

Bottom lineUse the proceeds from the Reverse Mortgage before tapping in to the investment portfolio or social security income.

Access home equity, strategically, during retirement

  • Extend retirement assets
  • Increase cash flow
  • Reduce taxes.

The Reverse Mortgage loan serves as a fourth leg of the Retirement plan

  • Social Security
  • Pension / 401k
  • Personal Savings / Investments
  • Reverse Mortgage loan

Strategies to utilizing a Reverse Mortgage

  • Portfolio Management – Borrower will have an additional source of funds from which to draw during down markets (prevents portfolio depletion during times when asset is already declining).
  • Supplemental Cash Flow – Borrower may draw a consistent supplemental source of funds from their home equity through a monthly payment stream to enhance monthly cash flow.
  • Postpone receiving SS Income – Use Reverse Mortgage loan proceeds to provide tax free monthly funds from 62 years of age until a later date to maximize Social Security income dollars.
  • Replace the taxable income generated from CD’s or Bonds with a tax free* monthly stream of funds generated by a Reverse Mortgage. (* Consult a Tax Professional)
  • During bull markets, if desired, Portfolio funds can be used to pay down the Line of Credit balance.
  • The key is to be pro-active, not re-active. A Reverse Mortgage loan, when used with a financial plan, is best when it’s not being used as the “loan of last resort”. Early intervention with home equity could radically alter the retirement outcome. Draws from the portfolio in a bear market can be devastating to cash flow survival. Especially in the early retirement years. By relying on home equity in coordination with portfolio withdrawals, many retirees might be able to justify a more robust withdrawal rate and for some, simply a way to stay on track. More money helps stabilize the plan to create a more stimulating retirement.

Call today and speak with one of our Reverse Mortgage Specialist’s. Find out how the Reverse Mortgage loan can make a positive impact on your existing financial plan.


P.O. Box 292735
Nashville, TN 37229


New Castle Mortgage NMLS #165959
Tennessee Mortgage Broker License #108682
These materials are not from HUD or FHA and were not approved by HUD or a government agency. (HUD Mortgagee Letter 2014-10)

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