Aging Options

Reverse Mortgage Can Be a Solid Buffer against “Stock Shock”

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If you’re a fan of roller coaster rides, then you’ve probably enjoyed the precipitous drops and tepid recoveries of the stock market since 2016 began. For the rest of us, the Big Dip of 2016 has been anything but pleasant, with the Dow dropping well over 1,500 points from late December until early February. To call the stock market “turbulent” would be an understatement.

When we counsel our clients, we always emphasize the importance of protecting one’s assets in retirement. But how can you do that during times of extreme market volatility? A recent article on the website Reverse Mortgage Daily gives a surprising answer: a reverse mortgage can provide the ideal cushion against big drops in a retiree’s stock portfolio.

Click here to read this timely and helpful article.

The article makes it clear that the unease triggered by recent stock market upheaval is causing many to see reverse mortgages in a new light. As the article’s author puts it, “With the market unpredictability stoking concerns for the future, some retirees may be finally convinced to take another look at how home equity can fit into their retirement plan.”

When the market takes a big drop as it has since New Year’s Day, it places a particular burden on retirees who rely on regular withdrawals from their stock-based retirement accounts. That’s where a reverse mortgage can be a vitally important financial lifeline. The article quotes Jamie Hopkins, professor of taxation at the American College in Pennsylvania, who states it clearly:

“Reverse mortgages really provide an income source that is not correlated to market returns,” Hopkins said. “For retirees, to have another source of income that is not related to the market, that is a great benefit.”

The article goes on to suggest that, with a reverse mortgage in place, retirees can literally ride out a big dip in the market and give their portfolio a chance to recover until the market begins to correct. This can be a huge boon to a retiree’s financial security in turbulent times.

In planning for retirement, adequate preparation is the key. The article ends with a cautionary note: a recent survey of 1,000 adults from American Funds says that only about three in ten respondents age 50 and older are bracing for big bumps in the market over the next decade. A reverse mortgage could be just the answer, adding immeasurably to your financial security in an unknown future.

But is a reverse mortgage really right for you? Could a reverse mortgage provide an advantageous source of retirement income free from stock market hiccups? There’s no one-size-fits-all correct answer. The best way to find out for sure is to sit down with a reverse mortgage expert and go over your particular situation. We will be happy to refer you to a trusted expert in the field who can advise you.

For answers to all your retirement questions, we invite you to contact our office for a consultation any time. Or if you’d prefer, come to one of our LifePlanning Seminars held in locations throughout the area. Click on the Upcoming Events tab on this website for details on these fast-paced, information-packed free seminars.

It will be our pleasure to help you plan for a secure, rewarding retirement.

(Originally reported at





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