The Problems with Reverse Mortgages
Reverse mortgage advocates focus on all the cool things that can be done with them. They don't focus on the very real downsides, which are not insignificant.
Reverse mortgage advocates focus on all the cool things that can be done with them. They don't focus on the very real downsides, which are not insignificant.
There are many ways to spend your nest egg, but they generally fall into a continuum between "probability-based" and "safety-first."
Reverse mortgages are a unique financial product with some interesting features. Recent changes have made them less risky for house-poor retirees, but haven't done much for high-income professionals.
Annuities have some unique aspects that can be combined with reverse mortgages, long-term care insurance or medicaid to produce substantial financial benefits.