Wider Acceptance of Reverse Mortgages Riddick says reverse mortgages are increasingly popular vehicles to supplement retirement plans, especially as other professionals get more comfortable with recommending them. “This is magnified with the recent acceptance and support of the financial planning community,” Riddick says. “As this awareness continues to grow, so will Americans be able to retire earlier and with more comfort, without a doubt.” Brian Fields, manager of the Merrill Lynch Wealth Management office in Camp Hill, PA, agrees that there is greater acceptance of reverse mortgages in recent years. “From a reverse mortgage standpoint, it used to be taboo to even think about it,” he says. “While it is not the right thing for everyone, there might be an opportunity to utilize it. For me, I just look at it as another arrow in my quiver of tools that I can use. It is important to know that it is there to use—if it is the right situation or the right solution for someone in a particular situation.” One recent example was a client who was 62 and didn’t want to start collecting Social Security until his full retirement age. When Fields ran the numbers, a reverse mortgage made sense because the client would reduce expenses by shedding his mortgage payment and then get the income from a reverse mortgage to bridge the age gap. Because the numbers worked, the client sought a reverse mortgage specialist, Fields says, noting that his office does not handle the mortgages internally. “From a financial standpoint it can make sense,” he says. “It really is a matter of whether the client is comfortable.” Each person will have a unique set of financial circumstances, and so all planning is unique, Fields explains. “Planning is what is critical,” he says. “A decision about a reverse mortgage or about Social Security or anything cannot be done in a vacuum. It really needs to be looked at in the whole picture and what they anticipate their needs will be.” Fields says he has noticed the saving trends in the past two years, pointing out that some people might not have gotten stimulus checks but had money to save because they weren’t spending money on restaurants, travel and vacations. “People who were working were saving money,” he says, noting that some of his clients decided to retire early. “Everyone needs a plan. The plan today may show them that they are ahead of schedule because they did save extra, but it is something you have to revisit every year.” He expects the excess saving trend to end eventually, if it hasn’t already. “Once everybody forgets about this situation,” he says about the pandemic, “they will get back into their normal spending habits.” Saving Increases continued from page 25 Financing Seniors’ Independence ServingUtah and Idaho for Over 20Years We opened our doors in 1999 to provide local homeowners and those wishing to be homeowners good quality mortgage loans with no hidden surprises or costs. We pride ourselves on being customer oriented and find loans that are tailor made for our clients. We added the reverse mortgage loan to our great line of product offerings and have been providing the people of Utah and Idaho this loan as another mortgage available to meet whatever financial need arises. We continue to remain committed to our clients’ mortgage financing needs, and our variety of all residential mortgage loan products makes us a great company to add to your network of professionals. FSI Mortgage Independence Square 111 East 5600 South • Suite 102 Murray, UT 84107 • NMLS #4398 www.fsimortgage.net 1-800-808-3066 REVERSE MORTGAGE / MAY- JUNE 2022 27
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