The Role Of The Reverse Mortgage In Financial Planning In Florida

Increasing portfolio longevity through strategic use of HECM lines of credit

RESPONSIBLEREVERSEMORTGAGES

NMLS #: 1212765

“Reverse mortgages do have a place in mainstream retirement distribution planning, and have a significant impact on the probability that some clients will be able to meet their predetermined retirement goals”

The Journal of Financial PlanningStandby Reverse Mortgages: A Risk Management Tool for Retirement Distributions

“Many future retirees will not be in a position to avoid using home equity in retirement”

Boston College National Retirement Risk Index 2010

LEARNING MORE ABOUT THE

REVERSE MORTGAGE

Become mortgage payment free and liberate income.

Released funds are tax-free* and interest payments may be tax- deductible, if paid. *Not tax advice please consult a tax advisor.

Create a non-reversible, growing line of credit at a low cost.

Avoid the untimely selling of assets, stocks and shares.

A reliable source of income, like an annuity.

Social Security and Medicare are not affected by Reverse Mortgages.

Property prices in the Sunshine State rose 8.6% last year. As such your clients will want to know that there is a way to capitalize on this growth whilst simultaneously extending the life of their investment portfolio, as can be done with a Reverse Mortgage.

USES FOR RETIREMENT SECURITYWITH A REVERSE MORTGAGE

HOW DOES IT WORK?The federally insured HECM Adjustable is a home equity conversion mortgage that allows your client to establish a line of credit that grows over time, secured against their property. The line of credit can be used at will, and the money taken is tax-free.* There are no monthly payments to make, making it different from a HELOC or regular mortgage.

What are the qualifications?

What are the ongoing obligations for the borrower?There are no monthly payments to make, but the borrower must keep up to date with their property taxes, insurance and maintenance of the home. It must also remain their primary residence.

1

They must be able to clear any outstanding liens before proceeding, though this can be done with the HECM proceeds.

The home must be the borrower’s primary residence.

The youngest borrower on the title must be aged 62 and over.62+

zeroLIENS

Restore cash reserves.

Postpone Social Security and Pension withdrawals.

Use tax-free* funds to lessen your tax liability. *Not tax advice please consult a tax advisor.

Let your retirement assets grow by delaying their withdrawal until later.

Peace of mind that large expenses are covered such as family events or medical bills.

Fund a new residence using the HECM for Purchase product.

*Not tax advice please consult a tax advisor.

RESPONSIBLEREVERSEMORTGAGES

LOCALYOUYOU2 BBB Rating: A+

ACCREDITEDBUSINESS

R

A FINAL MESSAGE FROM RESPONSIBLE REVERSE MORTGAGE, INC.

We see the role of financial planners as fundamental to the future success and innovations in the reverse mortgage market.

By working closely with financial planners and listening to the feedback from their clients, we can continue to innovate and deliver long-term solutions that meet the financial planning needs of those at or approaching retirement.

We want to see the responsible, flexible use of home equity considered in retirement planning amongst the wealth of other options available in a considered, co-ordinated strategy that has the client’s long-term interests at heart.

Responsible Reverse Mortgage, Inc.

Talk to one of our local Reverse Mortgage Specialists to find out how the HECM can help your client’s retirement funds last longer.

We provide local, specialized advice in the comfort of your client’s home, so no speaking with out-of-state companies over the phone and no sending sensitive documents through the post.

responsiblereverse.com/fp1-800-953-8566

TWO CLEAR &EFFECTIVE STRATEGIES1. The Reverse Mortgage First StrategyHere, your client takes out a reverse mortgage at the outset of retirement. They

draw upon it every year to provide a retirement income until the available funds

are exhausted. This allows your client’s portfolio more time to grow without

withdrawals affecting the portfolio size.

2. Coordinated StrategyHere, your client takes out a reverse mortgage at the outset of retirement. Funds

are only drawn if the portfolio is underperforming. The key is not to take any

money out of the portfolio in a bear market, giving it a better chance to recover.

The reverse mortgage funds can be paid back at any time, without penalty.

Both strategies are more effective when your client sets up the credit line as soon

as they are eligible to do so. This is because the credit line grows over time at a

compound rate.

The 4 key benefits to setting up a HECM line of credit

1. It diminishes the need to hold cash reserves for emergencies. Holding cash has an opportunity cost and low returns.2. It provides flexibility and the reserves to avoid cashing investments in a bear market.3. It allows the homeowner to decide how much home equity is used to meet needs if the investment portfolio is exhausted.4. It increases the life expectancy of an investor’s retirement nest egg.

We see the role of financial planners as fundamental to the future success and innovations in the reverse mortgage market.

By closely working with financial planners and listening to the feedback from their clients, we can continue to innovate and deliver long-term solutions that meet the financial planning needs of those at or approaching retirement.

We want to see the responsible, flexible use of home equity considered in retirement planning amongst the wealth of other options available in a considered, co-ordinated strategy that has the client’s long-term interests at heart.

Responsible Reverse Mortgage, Inc.

A FINAL MESSAGE FROM

RESPONSIBLE REVERSE MORTGAGE, INC.

Responsible Reverse Mortgage, Inc.www.responsiblereverse.com1-800-953-8566Our NMLS number is 1212765www.nmlsconsumeraccess.org

Responsible Reverse Mortgage, Inc is incorporated in the State of Florida and has its registered address at:

515 N Flagler Drive, P300, West Palm Beach, FL 33401

Talk to one of our Reverse Mortgage Specialists to find out how the HECM can help your client’s retirement funds last longer.

financialplanning@responsiblereverse.comresponsiblereverse.com/fp

1-800-953-8566

RESPONSIBLEREVERSEMORTGAGES

LOCALYOUYOU2 BBB Rating: A+

ACCREDITEDBUSINESS

R

Jose Caba AcostaLicensed Reverse Mortgage Loan Officer

Email: jose.caba.acosta@responsiblereverse.comPhone: 561-818-8905NMLS #: 1384967

responsiblereverse.com/fp

1-800-953-8566

RESPONSIBLEREVERSEMORTGAGES

NMLS #: 1212765