HighTechLending, Inc. NMLS # 7147

Journal of Financial Planning: During market drops, using this strategy extends retirement survival by decades

For retirees with substantial investments in the stock market, February was a scary ride.  On the 5th investors held their collective breath as the Dow Jones Average free fell almost 1,600 points; marking the biggest single-day point drop in stock market history.  For those living on their stock market returns, February was a reality check.  The markets have grown steadily over the long term, but there will always be drops, followed by gains, over and over again. This crazy month may cause one to consider how to have safety and stability when invested in the market.   Researchers Shaun Pfeiffer, C. Angus Schaal and John Salter had a study published in the Journal of Financial planning that evidences how using a reverse mortgage in conjunction with your investments creates an estimated survival advantage of 30 years over not using one.

Living off your portfolio during a stagnant or dropping market is dangerous to your overall long-term financial health as it will cause you to deplete your principal investment quickly.  When the market does rebound, it will take longer to regain the losses sustained versus someone that is not living on their returns.  The aforementioned researchers have a proven solution, using an alternative fund to live on when the market is dropping or 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).   In fact, the money left in the RM LOC grows as it is left in the home (currently growth is around 5 ½ %).  By getting a RM LOC today you can create a slush fund that is growing while you aren’t using it and money you can draw from when your investments are not sustaining 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.

In February 2018, we saw the biggest drop in stock market history.  Was this just a blip on the overall bull trend or was it an indication of future drops to come?    No-one knows definitively, but by using a RM Line of Credit draw strategy, you will have growth during Bull markets and cash flow during Bear 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 call me to discuss this strategy.   Robert Snow Krepps, NMLS #255191, at HighTechLending Inc today to discuss how a reverse mortgage may be able to help you (877) 567 – 7476 or rkrepps@hightechlending.com .

HighTechLending Inc, NMLS # 7147, is an Equal Housing Lender.  Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act.

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