Robinson joined AAG in 2021 with more than 30 years of combined professional and military leadership experience, most recently serving as COO of Genesis Financial Solutions. Previous roles include senior vice president of real estate and mortgages at the United Services Automobile Association; head of mortgages at Fifth Third Bank; senior vice president, servicing operations, at PHH Corp.; and vice president of operations at Genworth US Mortgage Insurance (formerly GE Financial Assurance). The press is talking about ... Washington Post: Inflation Squeezing Older Americans Rising prices are squeezing household budgets around the country and putting additional strain on its 56 million residents age 65 and older, many of whom rely on fixed incomes and limited savings to cover monthly costs for prolonged and unpredictable periods, according to an article published by The Washington Post. In interviews that The Post conducted with more than a dozen retirees between the ages of 58 and 85, almost all said higher prices were forcing them to skimp on basics. They reported cutting back on meat and vegetables, driving less and trading in gym memberships for Jane Fonda workout videos. Half of older people who live alone are struggling to get by on less than $27,000 a year—or the bare minimum for a single renter in good health to cover expenses, according to the Elder Index, a cost-of-living measure created by the Gerontology Institute at the University of Massachusetts Boston. Read the full article at wapo.st/3rZHwUd. Morningstar Contributor Shares Strategies Certified public accountant and Morningstar contributor Sheryl Rowling shares strategies for using home equity in retirement. One of them involves a reverse mortgage. “Ignoring home equity might be fine for those with adequate retirement portfolios; it’s not fine for the rest,” says Rowling. “Tapping into home equity is sometimes seen as financial suicide, much like holding balances in high interest-rate credit cards. This is not necessarily true.” In addition to restructuring debt and downsizing, another retirement strategy that relies on home equity is a reverse mortgage. To help illustrate her point, Rowling used a fictional couple named Phil and Irma, who are both 80 and own a home worth $800,000, with a mortgage balance of $300,000. “A home equity conversion mortgage could pay off the mortgage in full, relieve Phil and Irma from making the monthly payments, and provide up-front cash of $40,000 to $80,000. If Phil and Irma prefer a lifetime monthly cash payment rather than lump sum, they could receive $600 to $800 a month instead of the $40,000 to $80,000 up front,” says Rowling. Read the full article at bit.ly/3OQsUjY. New York Times Gives Insights into Reverse Mortgages The New York Times published a positive article that highlights how reverse mortgages should no longer be characterized as a loan of last resort for house-rich, cashpoor retirees, but rather a strategic option for households to plan for a more financially secure retirement. Reporter Susan Garland says homeowners in their 60s and early 70s could use cash from a reverse mortgage to protect investment portfolios during market downturns, to delay claiming Social Security benefits or to pay large medical bills. “The best use of this tool is to provide and supplement income during retirement,” says Craig Lemoine, director of the financial planning program at the University of Illinois, Urbana-Champaign. “A younger retiree can stay in the house while turning equity into an income stream.” To help illustrate her point, Garland interviewed 75-year-old Marjorie Fox, whose husband passed away in 2016. She waited two years to retire as a financial planner and three to sell their house and buy a lakeside townhome in Reston, VA. For added protection, she took out a reverse mortgage on her new home. Read the full article at bit.ly/3LxzidA. What’s News continued on page 10 REVERSE MORTGAGE / JULY-AUGUST 2022 9
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