According to the Government Accountability Office, 1/3rd of seniors age 55 and over do not have even a penny of retirement savings, and well over 50% have less than they need to live comfortably.
For the children of seniors that are limited in their retirement, there may come a time when you need to come up with some creative solutions for your parents in order to make sure they get a chance to live comfortably and be cared for the next many years. In some cases, that means you may want to recommend a reverse mortgage.
Recommending a Reverse Mortgage to Your Parents
You always have your parent’s best interests in mind, and that sometimes means making some recommendations to them to help with their financial future. A reverse mortgage could allow your parents to let their home pay them back.
With a reverse mortgage, your parents can continue to live in their home throughout their retirement and receive a cash lump sum, monthly payments, or line of credit.  
As the children of a senior parent, there are times when it may be worth recommending a reverse mortgage. This can be a tough conversation, but there are situations when a reverse mortgage can be a good option for your parent’s future, including:

  • When They Do Not Have Enough Retirement Savings – If your parents have not saved enough for retirement, a reverse mortgage loan can be a great way to provide some financial relief.
  • When You Aren’t in a Great Financial Position – Children often feel a responsibility to help their parents financially after retirement. But not everyone can afford to do this. A reverse mortgage loan could take some of the pressure off of you.
  • When You Have Your Own Home and Retirement Plan – Some parents want to keep their home so that they can pass it down to their children. But if you already have a home of your own and retirement savings, it can be helpful to let your parents use their home equity for their financial needs.These are only a few of the situations when it may be worthwhile to start discussing a reverse mortgage loan with your parents, and ensuring that they are making the best choices for their financial futures.

For more information about reverse mortgages, please contact me today! 

Share with your friends

Leave a Reply

Your email address will not be published. Required fields are marked *