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Journal of Financial planning shows how to add 30 years to retirement fund survival

2015 was an incredible year for home values, but lackluster in stock market performance.  The home price index, published by the Federal Home Finance Agency shows that nationally home values have now surpassed their highest point before the last housing crash.   In 2015 the Dow Jones Industrial Average was a loss of 2.2% and the S & P 500 was down 0.7%.  2015 was the worst year for both financial markets since the Great Recession.    For those that are trying to live off the returns in their financial investment 2015 was a challenging year, but the boom in housing prices offers hope and opportunity.

Living off your portfolio during a stagnant market or dropping market is dangerous to your overall long-term financial health as you will deplete your principal investment.  When the market does rebound, it will take longer to regain the losses you sustained versus someone that is not living on their returns.  A great solution that will strengthen your returns in the market is to have an alternative fund to live on when the market is dropping stagnant.  A reverse mortgage allows you to take out a Line of Credit on your home that cannot be taken away; even if your home value were to lower (traditional LOC’s were frozen and taken away during the last housing drop).   Researchers Shaun Pfeiffer, C. Angus Schaal and John Salter published a study in the Journal of financial Planning showing that using a reverse mortgage in this way “show(s) an estimated 30-year survival advantage for early establishment (of a reverse mortgage)”  In fact, the money left in the RM LOC grows as it is left in the home (currently around 5%).  By getting a RM LOC today you can create a slush fund you can draw from when your investments do not give the return needed to sustain your cost of living.  With this strategy, you do not deplete your principal investment during down times, which enables you to recoup your market losses faster when there is a market rebound.

The first week of trading in 2016 shows re-emerging concerns over the Chinese market, oil, and a big drop in DJIA.  Choose to have security in 2016 and extend your retirement fund survival, no matter what happens in the markets.  Now is a great time to protect yourself and your investment returns with a Reverse Mortgage Line of Credit.   To see what a reverse mortgage can do for you visit our website at www.Funds4Seniors.com or talk to a friendly representative at 877-567-7476.

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