Reverse mortgages investments and wealth institute. He recently authored his first book, reverse mortgages. First, coordinating retirement spending from a reverse mortgage reduces strain on the investment portfolio, which helps manage the risk of having to sell assets at a. Reverse mortgages provide the ability to borrow a portion of your home equity without being required to repay the loan until the owner has. In the early days, reverse mortgages were generally treated as a last resort option after other resources were depleted, or as a way to obtain quick access to a large lumpsum of assets. Price match program is subject to reverse mortgage fundings llc right to rescind or modify the terms of this offer without prior notice as well as. May 30, 2019 this is an excerpt from wade pfau s book, reverse mortgages. But the research and the public policy changes over the past few years indicate that reverse mortgages can be a valuable tool in a retirement income plan in a way that many advisors may not. Wade pfau of shares some incredible reverse mortgage strategies that can supercharge your retirement when executed correctly. How to use reverse mortgages to secure your retirement by wade d. Other seniors, despite the premium increase, should still use federally insured reverse mortgages with a line of credit to stretch out their retirement accounts, says wade pfau, a retirement. Wade pfau is a true thought leader in the retirement income arena and his research and writing can. Merton is arguing that a much more flexible form of reverse mortgage than is available today could allow their. The views of the author do not necessarily reflect those of fairway independent mortgage corporation.
In 2014, intrigued by the seemingly universal bad rap reverse mortgages had cultivated, dr. How to use reverse mortgages to secure your retirement the retirement researchers guide series, available now on amazon. He also serves as a principal and director for mclean asset management. Reverse mortgages, 2nd edition is wade pfaus recent update of the original title. Wade pfau is a true thought leader in the retirement income arena and his research and writing can really change the way americans prepare for retirement. For the average american, its about a ratio of their network will be able 23 in home equity and.
For instance, the hecm for purchase sat on top along with using a reverse mortgage to pay off an existing forward mortgage or to fund aginginplace. Wade pfaus important book on retirement planning articles. They were often mentioned alongside phrases like last resort, out of money, and bad choice. Fitting home equity into a retirement income strategy. How to use reverse mortgages to secure your retirement retirement researcher media, 2016 by wade pfau, ph. Wade pfau, wrote a book on reverse mortgages called reverse mortgages. Generate a lifetime monthly paycheck that supplements social security and other financial resources, like an. But the research and the public policy changes over the past few years indicate that reverse mortgages can be a valuable tool in a retirement income plan in a way that many advisors may not realize. How can reverse mortgages be used to better secure retirement. Reverse mortgage interest rates after october 2, 2017 type components applies to.
Retirement expert wade pfau on how much money you really need. Is that a reason that more people need to be considering the reverse mortgage. Sep 19, 2016 a new book on reverse mortgages hit the shelves this past weekend, offering readers a comprehensive guide on the valuable role home equity plays in retirement income planning. The following is excerpted from wade pfaus new book, reverse mortgages. Have you read the book that every retirement researcher is talking about. How to invest during retirement an interview with dr. Apr 11, 2017 his research has been discussed in outlets including the print editions of the economist, new york times, wall street journal, time, kiplingers, and money magazine. Using reverse mortgages in a responsible retirement income plan.
Responsible use of a reverse mortgage can enhance an overall retirement income plan. Pfau is a professor of retirement income at the american college of financial services in bryn mawr, pa, and director of retirement research at mclean asset management in mclean, va. The new case for reverse mortgages the experts wsj. Retirement experts network is an educational platform for financial professionals brought to you by reverse mortgage funding llc, a reverse mortgage lender. Were the largest reverse mortgage lender in america. How to use reverse mortgages to secure your retirement the retirement researchers guide series volume 1. Though reverse mortgages have long held a bad reputation, research and public policy in recent. Click here to download wades reverse mortgages fact sheet. His first book, how to use reverse mortgages to secure your retirement, set the. How to use reverse mortgages to secure your retirement, discussing how reverse mortgageswhen used correctlycan provide an added layer of security for retirees and allow them to enjoy retirement more by gaining liquidity from an illiquid asset. By the time i finished the book, i realized this subject couldnt be covered in a single blog post even joshs mammoth 5000 word first draft he sent me, so we decided to run three this week on the subject. Pfau explains the regulations governing reverse mortgages, from penalties designed. I cannot give the much attention it deserves here, but i explain it in much greater detail in my book on the subject. Wade pfau releases new book on how to spend money wisely.
One option in the broader category of using reverse mortgages for debt coordination for housing is the hecm for purchase. Rich welcomes special guest, wade pfau, to the retirement planning podcast. Using a reverse mortgage to purchase a new home rr. As i started writing this post, josh mettle sent me a lengthy guest post about reverse mortgages and subsequently a copy of wade pfaus excellent reverse mortgages book. Wade donald pfau reverse mortgages have been surrounded by negativity. If you are thinking about a reverse mortgage, note these eligibility requirements. He ends the book explaining the value of reverse mortgages and how it is a good move to work with a financial professional when discussing these items. Four reasons to consider a reverse mortgage when you. A researcher and financial analyst explains the role of the reverse. For many of these, merton is arguing that a much more flexible form of reverse mortgage than is available today could allow their greatest nonfinancial asset to be converted into income. Reverse mortgages have been surrounded by negativity. They discuss his new book safetyfirst retirement planning and delve into the issues retirees are facing today. Wade pfaus book provides a clear, concise and insightful study of reverse mortgages in retirement planning.
A lot of advisors did their due diligence about reverse mortgages in the past. Using home equity conversion mortgages commonly known as reverse mortgages strategically can help improve clients retirement sustainability and build a larger legacy to leave their heirs. Recent changes to reverse mortgage rules sidelined a oncepopular investment protection strategy. Wade has created state of the art tools to understand how reverse mortgages impact retirement spending, including improvements from refinancing traditional with reverse mortgages. Fitting home equity into a retirement income strategy wade pfau learn more. How to use reverse mortgages to secure your retirement the retirement researchers guide series volume 1, available from the link above. How to use reverse mortgages to secure your retirement, as an aide for retirement planning.
This site and the information on it the site is intended for financial professionals only, and is not intended for use by or distribution to consumers. Wades book bridges the intellectual gap that exists for planners and the. So, if youre refinancing a traditional mortgage into a reverse mortgage, your loan balance will grow more slowly and so thats beneficial and thats one of the major changes we see now where when i had to redo the book, i changed my focus from that portfolio coordination with the growing line of credit being kind of the marquee way to. Recently, a professor and financial manager, wade pfau, wrote a book on reverse mortgages called reverse mortgages. One can go to amazon and do a search for reverse mortgage books and find plenty of material on the subject matter, but what makes pfau s book stand out is that it is recent. Pfaus book explores several viable uses for a reverse mortgage, such as using it to. How to use reverse mortgages to secure your retirement. Feb 21, 2017 first, coordinating retirement spending from a reverse mortgage reduces strain on the investment portfolio, which helps manage the risk of having to sell assets at a loss after market downturns. Oct 10, 2016 how to use reverse mortgages to secure your retirement october 10, 2016 by wade d.
Aug 26, 2016 reverse mortgages have been surrounded by negativity. The problem with the 4% rule is that its, well, always changing. Why reverse mortgages are a harder sell now nerdwallet. He ends the book explaining the value of reverse mortgages and how it is a good move to work with a.
The event was designed to educate financial planners about the product, but pfau used the time to explore some of the postoctober 2 possibilities, laying out a list of potential hecm strategies ordered by the speed at which the funds are used. We have the answers in this interview with retirement expert, dr. However, retirement researcher wade pfaus book how to use reverse mortgages to secure your retirement does an excellent job clearing up. Jun 19, 2017 as i started writing this post, josh mettle sent me a lengthy guest post about reverse mortgages and subsequently a copy of wade pfaus excellent reverse mortgages book. He also updates us on the new rules for reverse mortgages, explains why they have traditionally gotten such bad press, and how theyve changed. In this debut finance book, pfau draws on accumulated research and a deep understanding of the intricacies of reverse mortgages to advocate for their role in a balanced fiscal strategy for retirement. The lender provides you with a list of hudapproved independent counselors, as it should, but tries to direct you to a specific counselor.
By the time i finished the book, i realized this subject couldnt be covered in a single blog post even joshs mammoth 5000 word first draft he sent me, so we decided to run three this week on the subje. Reverse mortgages provide the ability to borrow a portion of your home equity without being required to repay the loan until the owner has permanently left it. Click here to download wades reverse mortgages fact sheet originally published at forbes. Wade has recently published a new book, reverse mortgages. This book is excellent as the content is great and the entire book can be read in about 34 hours.
Wades book bridges the intellectual gap that exists for planners and the general public. How to use reverse mortgages to secure your retirement by. How to use reverse mortgages to secure your retirement the retirement researchers guide series volume 1 pfau, wade d on. Retirees should consider reverse mortgages using reverse mortgages strategically can help improve clients retirement sustainability and build a larger legacy to leave their heirs, the. Leading retirement researcher pens new book on reverse. How to use reverse mortgages to secure your retirement october 10, 2016 by wade d. A new book on reverse mortgages hit the shelves this past weekend, offering readers a comprehensive guide on the valuable role home equity plays in retirement income planning. Download wade pfaus retirement risks ebook by clicking here.
Pfau, phd, is professor of retirement income in the phd in financial and retirement planning program, codirector of the new york life center for retirement income, and the ricp program director at the american college of financial services. So i spoke with wade pfau, one of the top minds in retirement research. Reverse mortgage researcher pfau weighs in on new hud. This is one of the most important and confusing aspects of reverse mortgages, and i cannot give the much attention it deserves here, but i explain it in much greater detail in my book on the subject. A researcher and financial analyst explains the role of the reverse mortgage in retirement planning. Now, reverse mortgages are tightly regulated at both the federal and state levels, not to. Wade pfaus latest book gives much needed insight into how retirees can. He also updates us on the new rules for reverse mortgages, explains why they have traditionally gotten. Oct 17, 2019 rich welcomes special guest, wade pfau, to the retirement planning podcast. Wade pfau releases new book on how to spend money wisely in. Reverse mortgages would not benefit all retirees, risks and costs should be carefully considered. Reverse mortgages can help houserich seniors free up cash. Wade pfau reverse mortgage book one reverse mortgage. Wade pfau provided an indepth and alternative look at reverse mortgages that explains how the use of them may work in some.
Four reasons to consider a reverse mortgage when you retire. Pfau is a coeditor of the journal of personal finance. Using reverse mortgages in a responsible retirement income. It would be beneficial for most entering retirement or considering a reverse mortgage to read this book. Wade pfau how to use reverse mortgages to secure your. Over the course of the next year, he came to the conclusion that reverse mortgages arent inherently a. Pfau explains the regulations governing reverse mortgages, from penalties designed to prevent a homeowner from making unwise. Strategic use of a reverse mortgage standby line of credit.
Gather knowledge concerning todays reverse mortgage program and recent changes to hecm reverse mortgages. Apr 04, 2017 however, retirement researcher wade pfaus book how to use reverse mortgages to secure your retirement does an excellent job clearing up some of the common misconceptions about reverse. His first book, how to use reverse mortgages to secure your retirement, set the standard for considering reverse mortgages a valid part of retirement portfolios. They discuss his new book safetyfirst retirement planning and delve into the.
Using reverse mortgages in a responsible retirement. Substituting income annuities for bond funds in retirement. The overpowering evidence in the research conducted displays that most people should get a reverse mortgage as soon as they are eligible at age 62 not 82 or 92 when they run out of money. Wade has created state of the art tools to understand. This is an excerpt from wade pfaus book, reverse mortgages.