clients to think about long-term goals. But the beauty of a reverse mortgage is that you have available funds in several buckets that you use any way you want. “Probably the biggest thing we can do as loan officers with reverse mortgages is just having the thought in our head that it is not always what it looks like on paper,” he adds. “We have to make sure what is best for the client and make sure a HECM is the best product.” Pinnell works with various financial planners who have developed a similar approach to reverse mortgages. Eric Dues, a financial adviser with Edward Jones in Northern California, says he works with a variety of clients, ranging from business owners to retirees to people just starting off in their careers. During the pandemic, people were saving more because of Paycheck Protection Program loans, cash payments from the government and they were just going out less, Dues says. Some of his clients started thinking about retiring early. One couple, for example, would have income from real estate investments but needed to figure out how to create a bridge for themselves. Generally, Dues says, clients need to factor in all the guaranteed sources of income—pensions, Social Security, annuities, etc.—and leave their 401(k)s and IRAs to make up any differences between their expenses and income, while keeping in mind increasing healthcare costs. “And then there is how a reverse mortgage would fit into that picture, as well,” Dues says. “I primarily see people who don’t have a lot in retirement savings utilize a reverse mortgage as a planning option. They are living off of Social Security and maybe have some money in the bank or a small 401(k), but they haven’t paid off the house. With a reverse mortgage, they can eliminate the mortgage payment and then even have another source of income or line of credit.” Like other financial planners, he will work with clients to figure out how to limit Medicare costs because not everything is covered, Dues says. “We didn’t know it would be this expensive to be this old,” Pinnell says. “That is what it comes down to. The deductibles, even if you have Medicare, are expensive animals.” Healthcare Costs continued from page 29 Nationwide Property Inspections and Preservation Inspections Preservation Insurance Loss Inspections REO Services Violation Management Utility Management Vacant Property Registrations Foreclosure Registrations Special Services Protecting Your Properties. Protecting You. • NFROnline.com • 800-639-2151 30 REVERSE MORTGAGE / MAY- JUNE 2022
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