Reverse Mortgages

Reverse Mortgages

Our clients benefit from Raskob Kambourian’s overall strategy of Life Planning—as a direct result of our role as Life Planners we continually research and find solutions that are beneficial to our clients.


Currently we are performing an in depth review of the possible benefits of a reverse mortgage.  As you will see below, a reverse mortgage line of credit, when done correctly, can be an appropriate solution for some retirees by helping them maintain an appropriate level of cash flow throughout their retirement years.


Specifically, our focus will be directed towards the interaction between an annual cash flow withdrawal from a 401k/IRA rollover and a cash flow withdrawal from a reverse mortgage line of credit.


Going back in time to the steep market drop in 2008, and the resulting decrease in the value of most retirement portfolios, an inopportune environment developed for the creation of cash to meet a client’s required cash flow withdrawal—a bad time to sell.


Next, let’s consider the above scenario and instead of tapping into the IRA rollover for the cash flow withdrawal we will take the cash flow withdrawal from the reverse mortgage line of credit.  By using the reverse mortgage line of credit, and not selling assets at an inopportune time, the IRA rollover portfolio will realize a beneficial overall long term rate of return by allowing the assets to gain back their value. 2009 was a year of superb growth.


The above scenario goes against current thinking regarding the use of a reverse mortgage line of credit as a financial-tool of last resort.  We believe that, at times, waiting to utilize a reverse mortgage line of credit as a financial tool of last resort may be detrimental to the overall growth of an IRA rollover.


There are, of course, many factors to consider before utilizing a reverse mortgage line of credit.  A reverse mortgage line of credit is not right for everyone.  At Raskob Mambourin, we stay vigilant on the behalf of each of our clients concerning various strategies that will help them maintain their life style during retirement and a reverse mortgage line of credit may be appropriate.


Raskob Kambourian Financial Advisors is an independent, fee-only comprehensive financial advisory firm registered with the Securities and Exchange Commission.  We offer expertise, competitive pricing, and personalized financial services to meet your “Life Planning” needs.