When it comes to having reverse mortgages as a option for retirees, one finance professor believes its a good idea to at least consider the option. Jamie Hopkins is a financial planner and an associate professor of taxation at the American College of Financial Services in Bryn Mawr, Pa., according to a recent Reverse Mortgage Daily report and he has some pretty strong advice for retirees.
“While there are risks with utilizing a reverse mortgage, if properly used, it can be one of the best features of your retirement income plan,” wrote Hopkins in “Rewirement: Rewiring the Way You Think About Retirement,” according to the report.
"With the cash-flow option, Hopkins describes opening a line as soon as one turns 62, then letting the line grow over time to use in case of market downturns. While new principal limit factors rolled out last year have slowed that growth, Hopkins has said in the past that the strategy remains a valid option for retirees — and several speakers at the symposium pointed out the added advantage of setting up a line in an era of rising interest rates."
Reverse mortgages are not always the most popular options among financial planners, though, Hopkins did preface his endorsement by saying it can be one of the best features of your retirement plan, if used properly.
To learn more about Hopkins' view on reverse mortgages and why he is a proponent of them, click on the image above.