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Myths and misconceptions about reverse mortgages

Posted at 1:22 PM, Jun 17, 2020
and last updated 2020-06-17 16:22:30-04

In light of unsure economic times surrounding the current COVID-19 pandemic, many are rethinking their retirement plans. As it becomes more challenging to save for retirement and manage investment risks in today’s volatile stock market, many Americans are giving reverse mortgages a second look as a viable option to supplement retirement income and solve for shortfalls in their retirement nest eggs. In the past, reverse mortgages were typically a last resort, however that’s no longer the case. Financial advisors are now seeing more retirees interested in using home equity for financial flexibility, with applications for some reverse mortgages up 50% in the first quarter compared to the same period last year.

On June 16, Steve Resch, VP of retirement strategies at Finance of America Reverse and a practicing investment advisor, will be available to share with viewers how incorporating the responsible use of home equity through reverse mortgages can be an effective risk management tool and a sound approach toward ensuring a diversified and stable retirement strategy.

KEY BENEFITS OF A REVERSE MORTGAGE:

  • Provides access to an alternative source of income that can be accessed to pay bills and address other important financial needs, even when other funding sources aren’t available
  • The financial freedom to stay invested during the current stock market lows and not be forced to sell assets from retirement accounts at significantly reduced values in order to generate income
  • Enables investors to be patient and stay invested in the stock market while portfolios recover enabling them to potentially get more exposure at less expensive levels

MORE ABOUT STEVE RESCH:
Steve Resch, Vice President of retirement strategies at Finance of America Reverse, is a financial advisor and industry veteran with a decade of reverse mortgage experience. Previously, Mr. Resch was a regional wholesale account manager for Financial Freedom Senior Funding. During his tenure at each company, Resch established the largest wholesale production channels. Mr. Resch has more than 30 years of experience in sales management, with a 20-year career on Wall Street as an investment analyst and as a managing partner for a financial planning/investment management firm. In that capacity, he began to successfully incorporate the reverse mortgage as a wealth management tool. He is committed to educating and expanding reverse mortgage applications throughout the financial planning and related investment markets.