FYI: Reverse mortgages have been receiving considerable attention in recent years as a retirement planning tool, with particular focus on the line of credit (LOC) feature. Retirees may be able to use a LOC to provide additional funds for retirement or in more specialized ways such as supplementing retirement savings portfolios during stock market downturns. Much of the research on such uses, including my own, has involved building full financial planning models that incorporate LOCs.
However, it is useful to narrow the focus to the performance of LOCs, as one would for any financial investment. That is the approach I will take in this article to provide an additional perspective for analyzing reverse mortgages.
Regards,
Ted
https://www.advisorperspectives.com/articles/2019/10/07/evaluating-reverse-mortgages-as-investments
