Reverse mortgages have gotten a bad rap. But they’ve come a long way since Fred Thompson was shilling them on daytime TV (though they probably deserved their bad reputation back then). These days, reverse mortgages are powerful tools for managing your retirement income situation.
Reverse mortgages, just like any financial tool, are not for everyone. If you meet the criteria, they can help smooth out the risks to your retirement income in all sorts of different ways. Wade Pfau, our Director of Retirement Research, has been doing a lot of research around this lately. In fact, he just wrote a book on the subject.
There’s a lot of confusion and misinformation around reverse mortgages that you have to sort through to find the truth. Just remember these three things:
- They are not a panacea,
- They do involve some level of risk, and
- They are not for everyone.
But for a large number of retirees, they can provide a significant source of retirement income that many people don’t know about.
For more on understanding how reverse mortgages actually work, download our Reverse Mortgage 101 Fact Sheet.
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