Reverse Mortgages Part 2 – Surprising ways to strengthen your retirement. Ep. 10

I’ll be the first to admit that as a lender, I have given little respect to HECM’s, until this point.

The Reverse Mortgage Home Equity Conversion Mortgage (HECM) deserves a thoughtful review as part of your long term security, and protection of your spouse or significant other, even if you don’t think you need it. You will find the part on using a HECM to purchase a home most interesting.

1- Practical application of HECM line of credit.

  • 1:40 Dr. Wade Pfau – wrote that a HECM line of credit early in retirement will be a hedge against housing values and will allow you to not drawdown on your portfolio during down markets.
  • 3:20- HECM’s with Monte Carlo simulations show sustainable lifetime income.
  • 4:00 – The story of two brothers – in a down market, one drew on his portfolio, the other on his HECM, and the surprising results.
  • 6:45 – Dr. Barry Sachs –
  • 8:10- Using a HECM for peace of mind.
  • 8:45- Using a HECM for investing.
  • 10:15- Outside of the box use for HECM refinance
    • Comparing a traditional 30 year mortgage to a HECM during retirement.
  • 12:00- How HECM will help the surviving spouse when income drops.
  • 14:10 – How HECM can help delay receiving social security until you are at the age of maximum benefit.
  • 16:14- Purchase HECM – mind blowing.
  • 19:25- What happens when you draw down $200,000. in your portfolio with a traditional mortgage.
  • 21:55- With HECM, can purchase home for approximately 52% of purchase price.
  • 25:15- If your financial planner or realtor is not familiar with HECM.
  • 26:00 – What you cannot use it for.
  • 26:15- What are the qualifying guidelines for a HECM?
  • 29:55- Ron’s music that has passed the test of time.
  • 35:25- Ron at 95 looking back on the major decisions in his life.
  • 37:50- Local non-profit for caregivers.
  • 39:40- Dying and the celebration.
  • 42:00 – How to reach Ron Heath.
  • 42:50- Final thoughts.

The Big Thought

“Never think you know what is going on in someone’s life.”

Resource websites for HECM loans:

Reach Ron Heath at: (919) 412-0686

HUD Information

HECM Advisors Group

The Retirement Cafe

Rons Music

QueenBohemian Rhapsody – Live 1982

Led ZeppelinStairway to Heaven covered by Ann and Nancy Wilson at the Kennedy Center Honors in 2012.

Elton JohnFuneral For A Friend – Love Lies Bleeding –

Life changing event:

Guiding Lights – A Caregiver Support Center

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