Podcasts Business Investing Your Money, Your Wealth Tapping Into Your Home Equity With a Reverse Mortgage - 71

Tapping Into Your Home Equity With a Reverse Mortgage - 71

Published: Oct. 8, 2016, 5 p.m.

A reverse mortgage gives you the opportunity to tap into your home equity to generate retirement income. Joe Anderson, CFP and Big Al Clopine, CPA discuss whether a reverse mortgage is the right move for you in YMYW podcast episode 71. Original publish date October 8, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed.

00:00 - Intro

01:02 - \u201cI\u2019ve got a lot [to explain] about retirement that you need to be aware of, some new tax plan strategies, pros and cons of retiring in your seventies\u2026\u201d

04:44 - \u201cPart of the reason why college is so expensive is because you can borrow money so now colleges are charging more and administrators are paid more.\u201d

13:57 - \u201cHave you ever considered how you will use your home equity in retirement? If you\u2019re going to stay in your home, will you tap into that?\u201d

18:42 - \u201cHome equity has not always been part of the retirement income discussion.\u201d

22:10 - \u201cWhat happens is either you borrow a lump sum or a payment stream or just a line of credit that you can draw when you need it; so then what happens is you don\u2019t actually make payments \u2013 the interest that you would have normally paid just keeps accruing and adding to your loan so when your house is sold, whatever your loan is gets paid off by the equity.\u201d

24:55 - \u201cHow do you use a reverse mortgage properly?\u201d

25:28 - \u201cHere\u2019s a way to get cash flow: if you don\u2019t have any in your savings, you can get a home equity line on a reverse mortgage and pay for your bills that way\u2026\u201d

28:54 - \u201cIf all your money is sitting in traditional retirement accounts, it\u2019s 100% taxable. For a lot of you, that\u2019s where the majority of your savings are. If there were a way to get control over your taxes, the home equity loan can be a tool if you utilize it with other strategies so you pay less taxes for the rest of your life\u2026there are a lot of ways to reduce taxes in retirement.\u201d

32:55 - \u201cWith an IRA or individual retirement account, you can buy stocks, bonds, mutual funds and ETFs. With a MyRA (my retirement account) you\u2019re buying U.S. treasuries.\u201d