Take for example a retiree who requires $3,000 per month out of her portfolio to cover one year’s worth of expenses. In case the index fund comes with a value of $250 per share, 144 shares need to be sold to recover the amount or about 180 shares in case the stock market forces the fund to drop by 25%.
Home equity can help create stability during retirement. In February, the stock market experienced its first drop after all the good news. Originators of reverse mortgage loan said a short term correction can’t boost the volumes. However, the extended uncertainty could do just that. Since that time, the market has witnessed wild swings during the unilateral actions of the president on trade, which could trigger an opening for HECMs to address a need for seniors concerned about the fluctuation in the Dow Jones Industrial Average.
Reverse Mortgage: Changing The Perception
The fees and the costs associated with reverse mortgages are some of the downsides when taking out HECMs. The average origination cost is $27,000, with $18,000 as a general guideline for HECM proceeds worth $100,000.
Generally speaking, the gathering highlighted the ways that the reverse mortgage sector has changed over the years. Home equity is a good way of averting emergencies during retirement. This is commonly neglected by some retirement planners when checking out the general financial health of their clients.
Employers should also let retirees know about reverse mortgages Greenville during their exit interviews. Financial advisors should also pay more attention to housing wealth during retirement.
Call Reverse Mortgage Specialist if you need professional help in planning for your retirement and for more information about reverse mortgages.
David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/
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