Unlocking Your Assets - 7.21.18

Saturday, July 21st

Reverse Mortgage Funding, LLC                                                                                           
1805 S Bellaire St #300                                                           
Denver, CO 80222                                                                                                               
Office: 303-773-3077                                                              

Larry Armstrong / NMLS#387204                                                
Arizona Mortgage Banker License #0927682
[email protected]

Ron Meier / NMLS#1371657
[email protected]

Many mature home owners don’t know they can enhance their retirement by accessing the locked-up equity in their homes. Recent research from the American College of Financial Planning shows that taking out a reverse mortgage early in retirement (at 62) significantly increases the probability to have enough money to last someone’s lifetime. The borrower retains home ownership while converting home equity into Income Tax Free* cash to supplement a retiree’s budget. As with any mortgage, the borrower must meet their loan obligations by keeping current with property taxes, maintain homeowner’s insurance, regular home maintenance and pay any homeowner’s association (HOA) fees if living in a covenant neighborhood.

Each week, radio hosts Larry Armstrong and Ron Meier, will dispel myths, share facts and talk with borrowers and their advisors about why they chose to use this premium financing tool. Larry and Ron will interview a variety of experts who’ve learned how reverse mortgages can help clients accomplish their financial goals: Financial Advisors, Realtors, Home Builders, Remodelers, In-Home Caregivers and Estate Planning Attorneys. Tune in each week to discover how your home can help assure your successful retirement!

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Unlocking your assets. Teaching you how to drive in retirement lunch you might reverse mortgage bonds and now we're euros and Larry are strong online. Do unlocking your assets to thrive on retirement. I'm Larry Armstrong and MLS number 38724. And I'm Ron Meyer. In MLS 13716757. Larry and hire licensed loan originators who specialize in helping mature homeowners discover how they can thrive in retirement. By unlocking their homes equity using a reverse mortgage. Ron this is a new day because we have an opportunity to have a real expert in two applying. He uses of home equity how to thrive in retirement but before we do urged on talk a little bit about their options people have to stay in their home. And we think it's important that people understand that they can infect stay in their home. Longer than they may have thought in the past. Larry how many people do you talk to like I do that say. I don't wanna leave my home I wanna be as independent as long as I absolutely can and they can carry me out feet first as far as I'm concerned. Absolutely in fact have an AARP has done a survey recently a study of their members. We're over 90%. Of all AARP members American Association for Retired Persons. Have said that's exactly what they want to do they don't aspire. We have to relocate into some other kind of the living environment they wanna live in their own home and make it as comfortable as they can to live and prosper as much as they can. So that leads us into into today's subject area. It does in other topic today is so I wanna stay in my home how can I do that and you know it's interesting because we have a lot of challenge is that. People don't always think about terror plan forests are looking forward into the future like. If they're gonna teach you place how to they do that successfully safely. And make their home more comfortable to be able to accommodate. The age in the frailties that they might have reaches their. Around growing older and those are just actual physical. And home related stuff opportunities. There are others that we haven't conceived of and yet hopefully some of our advisors and are planning his has allowed us to set aside money to. Take care of those kinds of issues and so we're gonna talk about those today with the good good friend a fellow who's been a mentor to us for years. I've met. Tom Dixon did years ago in our early days in this field when we were with MetLife. He's a respected subject matter experts and thought leader has been working with retirement planning researchers. Throughout the country over the last several years people that we sinker. Absolutely the strongest and and most dedicated to their clients. And now we're sharing he's he and they are sharing their researching their conclusions with certified financial planners and advisors and certified public accountants. All to benefit their clients. That Tom we'd like to welcome you to the show. To unlocking your assets to thrive in retirement. And ask you do it tell us a little bit about what you've seen on the war in the world view. And then we'll swing down into some of the more applications than and direct applications of the programs that are available here Tom. Tom Dixon. Thank you Larry Enron and now it's a pleasure to be here and I kudos to both of you for putting on this educational show. You know there's a still. Much education that needs to be done not only would consumers who might be listening but also with financial advisors and you point to some of the work that's been done by her leading retirement researchers on. The use of reverse mortgages and in my mind that really started back in 2011 and you know where it's. Really that gentleman is considered a pioneer in financial planning and that's Gerald events ski. Zinger that he did or a groundbreaking. Very comprehensive. Yearlong study on how to use a reverse mortgage just as part of retirement DK humiliation and another order how do you manage the risk of what you're spending and your your retirement years and I really think that that was sort of watershed. Moment where it should it change the mindset amongst. Financial advisors and has led to a lot of research since standard and institutions such as the American college. Which is very highly respected. Research a think tank. Has this kind of taken Apatow on an even run Morse soak. Definitely there's been. Very much changed. Perspective on reverse mortgages since the sense that researchers has begun. And we've seen a changing view from financial sponsorship. You comment I remember correctly that particular article first came out to end financial Claire magazine or something and get really caused. And in Christine conversation. To start within the financial planning community. I remember that it was those journalists financial planning and it was a cover story. And members of the dome or. Professional association. Pumped all of a sudden we're coming up and asking us about it so. Other we can learn how can we learn more so that's one of the reasons we wanted to have you on board didn't talk a little bit about. I was this opportunity presents itself poor advisors and their clients. Great so old films so there's just there's a lot of academic resource there were alluding to and and frankly it's it's really really well done. And and yet some of that you don't involve strategies can be complicate a little bit T even. You know the most seasoned financial professional so. You know what that what we tend to focus on where is financial advisors and planners and even clients when educating them about. The reverse mortgages as an option are what we call for common uses. And it's suggesting when I think about the team up and show up. Three of the four common uses are actually. One that it could help you. Stay in your home and here here's the key for every one. The TP use of a reverse mortgage can actually enhance its. The security. Your retirement plan so it's simply couldn't they can really help increased yards that. Your money there are born the last four. Really the entirety of your golden years so. So what we think about there but for common uses to go back to that framework. Good team most popular used that we have seen. Amongst financial planner client over the last two years. There's actually been to each user reverse mortgage to pay off. I traditional mortgage. So for those interviews that they're perhaps. Or in your sixties or older that are making any monthly mortgage payment. And that's frankly can be stressful and it can be taxing. On your retirement savings might be taking money out of your IRA or other sources to make that payment. Well assuming you have there's sufficient amount of home equity. As you possibly could use a reverse mortgage to eliminate that monthly payment. And frankly even more so if you have a a lot of home equity or quit. After that that they existing mortgages pay off you may be able to draw additional tax free cash Powell the and that last ported sort of a surprise seep into financial. Planners that sort of the while of that idea but we found for the last two years that. Well a little over two out of every three. Clients that we work where it's from financial advisors had that kind of scenario and that's how they used to reverse mortgage. To improve their their retirement picture of their retirement plan. Next in terms of popular uses is really do credit lines. There's an option in new you have multiple. Payment options if you do you consider using a reverse mortgage and how you convert your your home equity into a tax free payments. One of which is there rather than drawing for example monthly payment you could simply put a credit line employees have been. I often say that this is still while the product and and the reason being is that the amount. Made available to you in a credit line gross month over month a year over year. And. Data amounts content can grow to be very significant. Amount of money that you could access at a future point in time to contribute. A reference point if you're in this 62. Age range and you have homework. 680000. Or so you could qualify for a credit line that starts today at roughly 200000 are little more. Post. Putting that in place if you look out 102030. Years again the amount available on that line. Well grown in fact it took forty years later. That amount could approximate. 900000 dollars or million dollars. And it's it could be a very large amount work in thirty years it could be closed 22 million dollars. So in that line grossed independent of what happens to the value of the home. Still that's still wow all for many financial planners and that's one that. I really would encourage anyone. That's listening to to really really search further and make sure they understand how that would work it really good the use of that. Credit line none of this kind is really there's a thought about the show none of us can really think of ourselves is getting old to break. Yeah that's true what. Grade and the same thing in the mind. None of us could ever think about goat cheese would we ever need money to pay for health care expenses long term care expenses. Well unfortunately. Statistically. It's it's been reported by. There's an established leaders such as Genworth between 70%. Of older Americans are likely to incur any long term care helped expense. And the cost of that understandably could be catastrophic for many so. So the use of the credit lines could actually be. Salvation. And if you were to occur that long term care expansion could be used to pay for that long term care experience being in the home. Or if one wanted to see if you're married or you're Koppel one of the can do if you were part care outside of the home so. That's a big used that we see of the product put simply said the other idea is if you have any concern at all did your assets might not last. Into your early ninety's which for many of us. Could be your life expectancy. Again putting this credit line and placed it won't grow over time this is so it's a safety net effectively could take to resist safety net. That's wonderful song notes. There're so many things stuck burgers and Britain pictures back up on our next segment we'll be right back. Unlocking your assets. You talk to the life in retirement lunch you might reverse mortgage funding now we hear your host Larry Armstrong didn't. Ron Meyer. To unlocking your assets to thrive in retirement. I'm Larry Armstrong can MLS number 387204. And I'm Ron Meyer and MLS number 1371657. Larry and higher visiting with Comdex and here today and and Thomas get back into all of that tool one of the things that day you kind of prompted me read a statistic recently. That deep. The biggest reason for they see for seniors is because of medical. Bills and we heard a similar statistic. Yes see two that's the attention Enron you he the long term care expense tool is I used to try and catastrophic but clearly you know unfortunately it can. They can lead to a serious financial dress. For many so yes absolutely I mean if you look at the average cost of a long term care to daily. For example on a national basis. Semi private skilled nursing home and speedy 2000. Plots a year. And again a pure and home for a few years. That that can be again McEnroe I think anyone's retirement plan and so yes it did it can be a significant expense. So that sounds like they're natural tie in for the homeowner whose 62 plus to be able to. Look at their equity in their home. Through a reverse mortgage as a potential funding source for some kind of catastrophic good event. Yeah. So I would just had a quick quick story that the lightbulb went on for me with this idea for five years ago when I I got a call from a financial planner in the the Buffalo, New York. Area and the other a couple under early eighty's how has been more patient and they were in their home at the time and husband required care and had to move into a skilled. Nursing facility. And he was looking for an option. Short of the the wife who would help he wanted to remain in the home. Having two draw 60000. Dollars now to write a check out of her eyes are day. I suspect everybody which they out when they hear that. Exactly. Just what she was able to reduce a reverse mortgage credit line. And right I checked people are area assets in place have no payment required on that check off the credit line. And take care of her husband and remain in our home. So that's one the lightbulb went on for me to achieve there's a lot of my guess is they're a lot of people that could benefit from top to like. It and the fact that that I checked it she wrote was had no tax consequence. Compared to taking money out of the ire pray that did that's a big. Plus two. Let that makes all the sense in the world to me and Heisman I think about it you know how many of us. Could have events happened and our allies where there via the long term care issue or some other events that that. Could be problematic I mean there are other things that people have done for example as I understand I've got clients who have done this is well. Where they've been able to excess or accessed via equity that they've had their home to to do some others things whether it be gift. It's to their kids or grandkids to help them through an event tour nobody gets out of just such a grandchild slightly ninth. And I only to plan your college plans I've had a I've had clients who have folks. Actually purchased a root for a vacation home with us with the use of the equity from their primary germ. Enjoyed that and then ultimately. Chosen two. Retired in that vacation homes sold there the original home. And and did a reverse mortgage on the vacation home. So it really truly is a financial planning tool. The vehicles that most of us had not thought of until as you said the light went on. Absolutely hinder that reminds me ill if you want more we think about the common uses. 011 trend that we see where it financial advisors and their clients when they. They contemplated this study do you have a reverse mortgage in their retirement plans. It's actually import in the amount could be available from a reverse mortgage too many of these different uses. Into their house financial planning software program. And actually modeling and how that reverse mortgage money it's chicken tax free cash. Could actually improve. The client's financial outlook so. It is so that's one thing that I I would strongly encourage everyone to consider anyone its interest did. They're learning more about dissing your view we're going to ask your financial ties your belt it. My advice would be to ask them to. Not only to learn more themselves to get educated about the product but also. And actually run the numbers model what's the impact there on your financial plan would be if you were to usual reverse mortgages. Well that that's tremendous Solomon and quite frankly we understand and we knows it to. There are a number of leading financial planning tools and software that planners shoes. Do infect have the opportunity to model was was Beckham or the reverse mortgage. I guess you're listening to that I would share. Is that it's. We've had a number of certified financial instrument certified. Public accountant CPAs. Who also were in great position to understand. Where their clients. Are in their and there are need and their asset base. And they too have become more and more interested in this program and you've done some were quick to CPA academy. Right there's been tremendous interest from the CPA community needs nationwide. And when you start. Discussion with the SE PA and you you mentioned that you you have. An option or strategy that can provide. Tax free cash you can usually get their attention. Please. But does seriously date they too have been very interested in him the various uses the forthcoming uses. And and the fact that the cash from a reverse mortgages stack tree is just opponents. So we've sort of seen that it's again another. Professional community have strong interest in this product as well. Particularly when the things that I've been assured in working with those who have. Certified financial planners and the CPAs this. That these professionals. First of all have their clients' best interest at heart you know there after core of their being. They do a great job they're only going to. Were quiz. Recommendations. That they feel comfortable with and that they were searched and served numbers of stories that that. These professionals who had to end and experiences they've had. Makes me happy is it that we're able to bring that to us. Bring to their clients and and to them to be able to help them achieve the goals. My wife has a favorite expression she says I just wanna make sure that the peanut butter and jelly lasts as long as the toast. And while that may be kind of cute and it's very it's a truism we all want to make sure that up are assets last as long as we do. So absolutely and some of us one to avoid that. Exercise and in terms of literally running the numbers and make certain 62 year old today when used most of the programs they actually. The default for a life expectancy for Mayo is the age of 91. Well it's a long time to live on me I hope we all live that long and and longer but how you pay all the bills are all your expenses through that period. It's a question from any of its so. So again you know quantifying. And using programs. There are two to evaluate objectively. All a reverse mortgage could could impact. Your plan is something I don't recommend for any party. I'd like to circle back to fight me learn more understood to finish off the ideas around before coming uses is that okay. Not sure let's. Pick that right back up after this commercial break and will. Follow up on all that time so. Folks thanks for listening mrs. Ron Meyer might and allow us number is 137165. Summoned. And Larry Armstrong MLS numbers 387204. We're local license reverse mortgage specialists with a reverse mortgage funding LLC serving Colorado. If you would like more information about using reverse mortgage to learn how to stay in your home then the home urea and you can contact us at 303. 773. 3077. We invite you intend earned and next three group the seminar. Held each Tuesday evening and Saturday morning. You can RSVP on our website at www. HE CM CEO. Dot com that's www. HE CE MC IO dot com. Or Carlos at 303773. Rios 77. That's 3037733077. Unlocking your assets. Teaching you how to for. Brian good retirement but you might reverse mortgage funding now we hear your hosts Larry Armstrong didn't online. Welcome again to unlocking your assets to thrive in retirement time Larry Armstrong and Ellis number. 38204. And I'm Ron Meyer and MLS number 1371657. Larry and I are licensed mortgage loan originators who specialize in helping with tour homeowners discover and how they can thrive in retirement by unlocking their homes equity using reverse mortgage. So Larry let's. We have Tom kind of get back into the back finishing up some of them for common uses there's a couple more points that we wanna make I know that. We've kind of talked to him about so. Excellent Tom when you pick back up was the third and fourth common uses. Great yep thanks gentlemen and a justice and tradition at all. The third used to that we see ya on on a frequent basis is the idea of using a reverse mortgage to generate. A monthly payment you might think committed some birdies to guaranteed income. As you can draw up a monthly checks for a long has. If it's a couple again what have you continued to live in the house. You will continue if you opting in to year reverse mortgage and you elect to use them monthly payment option you continue to receive debt monthly payment for. As long as you were gonna live in the home and Beecher obligations. That support common use. The forthcoming uses actually using a reverse mortgage Stew and this is going to surprise many. Diet actually finance part of the purchase price. All the home so you're downsizing the bright side to what have you. You can do uses for that purpose that. Is it can be a very creative. Financial strategy for money many end and in fact I've studied that we helps support. Chose this painful task. Could actually be the least favorable financial strategy for many so that's finishes off. Before common uses. If if I may. But this comment in terms of how we see financial professionals incorporating. This conversation of how this client my user reverse mortgage. In their retirement plans. Well really it's should be part of a comprehensive. Financial plan and so where we see financial planner is embracing this. Or are really goes that you consider any and all assets that a client may have so. Moving beyond just investment assets be it IRAs or brokerage account and social security and pension but if you think about all of your efforts for the balance sheet for many of us stuck home equity asset useful or just single. Well that we have source of wealth so we have. And again we're seeing many financial planners and embrace that philosophy and look at all assets holistic played I hope you. Meet your retirement goals whatever they may be so. To my mind a good place for those listening nuclear intrastate and now this could impact your retirement plans. And you do work with the financial planner in particular again I would introduced the idea to them and there's a lot it's changed the product encourage them to get educated encourage them to analyze objectively. Using quantitative tools to help. Evaluate the impact of a reverse mortgage could have on your plan and last not least frankly I would absolutely encourage. Then menu. To pawn. Local. Or a match expert someone that's dealt and more quickest product for years has kind of server are still many so. Learn Ron thanks for letting me join and happy to take any other questions. Well we appreciate it talk it's been known that eight years of a growing experience in my working with you and him being. Constantly and continually. Pleased after the research that you and and others have sought help to fund industry. Who were the benefit of the industry's. Financial advisors CPAs. For realtors for her trust attorneys you name it the people that. Or so committed to making sure that. That as we age we thrive in retirement. And opening our eyes to to what is the possibility to convert what we sometimes considered to be or do you consider to be your one of our largest assets. Actually if it's got a mortgage against it might also be one of our biggest liabilities. And so anytime you can convert reliability. Which has an on going cost to it to NASA which has an ongoing benefit. That's not rocket science that's something that. You know when the light goes on how all of a sudden we have new opportunities and we are pleased to two of them have had the opportunity have you on today brought. Thompson thanks so much too early appreciate the insights to bring on a national scale to map down to power a the local level and everything and be able helpless to glean some of those insights. My pleasure thanks for having me. So Larry we wanna go ahead and and just kind of I don't let's share a couple of stories of saint pitch you know these situations we've been in over the past number of years where is this staying in place concept and now has really hit a bit of some people I can think of few little stories where that's helped I'm sure you can too. Sure I'd I knew from stem pointers in eight years have been involved in this business helping people. There have been many who have felt taken eight Beckham or home equity conversion mortgage reverse mortgage out with no intention of using it then all of a sudden. Something happened there down the road and they needed to there was an event health care events that are rose. And all of a sudden the money was there for them to meet any number of those folks are thinking come on multiple hands. Other places where as I mentioned before the person who wanted to be able to enjoy their retirement a bit more and they planned to via. A retirement home. And they were able to do that via a reverse mortgage Belcher along is. You know they were able to utilize the program is comfortably in hand. With the advice counsel of their advisor they're just numbers of situations like for us determine your own. Can remember a family that I helped recently where. Catastrophic event direct cause husband to be. Pass away prematurely and know the wife was a little worried because she still had a mortgage payment. The pensions stopped. Upon her husband's death. And she was just worried that she was gonna have enough money from just Social Security. To be able to pay you're living expenses to pay your property taxes. You maintain the home pay the monthly mortgage. And we were able to show or how he's using reverse mortgage. Now to put her in a situation where she doesn't have a monthly mortgage payments are getting rid of that particular monthly mortgage payment. And now using the equity and that she had her home. To be able to do nothing more than to pay a property taxes as a strategy. And have this growing line of credit how. As she had enough money out of her Social Security today and to be able to comfortably they all over living expenses and do the things that she wanted to be able to do. You know well and on top of that she stopped making the mortgage payments and she gave herself effectively a cost of living in Brady's that's right getting a raise from your boss without going to ask for a slowly as if she picked up several hundred dollars a month tour of maybe thousand what have you share and that was a benefit to her. On going monthly living expenses and solutions still have the cushion that you were talking about. Bryant you know again there's there's a lot of in the interest in situations that you and I both have come across where. We really helped families and then. Because of that. We need that was there and then we've also helped a lot of families. To be able to put themselves in a better situation to true true relief thrive and retirement because they now have. The money that they wanna be able to do to travel to. Take some wheels bucket list trips and things. So again it can really be a beneficial thing. Well run. What can we can't cover everything now on and on a Saturday afternoon are but we can invite. Our listeners to one of our weekly free seminars that are done in our offices set. Either on a Tuesday evening or Saturday morning pool and we'd love for listeners to either go to our website at www. HP's. So the MC. Oh. Dot com. Or call us at 3037733077. Bumped to preserve their place or one of the seminars and again there's no obligation. And educational program that's our striving responsibilities to thrive and help people thrive in retirement. Our job is educating people helping them make the right kind of choices that they can make of their own volition with the good information that there have. Have made available to them so thanks again. Thank you. So until next week I'm Larry Armstrong and I'm Ron Meyer and were wishing you the ability to thrive and retirement.