Reverse Mortgages – Buyer Beware

 

I am following everything that gets published on line with regard to retirement and retirement income planning. Over the past week, I have seen a recent flood of  “blog posts” are that are touting the benefits of a reverse mortgage. -These posts are identical and appear on different blog sites.

Please be careful. These are simply poorly disguised sales pitches. They want you to use the equity in your home to finance your lifestyle.

I am not a fan of reverse mortgages . This is especially important advice for undisciplined spenders, -you know who you are!! Using your home to fund retirement is typically a terrible idea. Unless you are in dire financial circumstances, do not even think about using your home as a piggy bank!

Before entering into this type of contract, always, always, always, seek professional advice from a CPA, CFP , attorney or trusted professional.

Jane Nowak is a Financial Planner with Kring Financial Management located in Atlanta, Ga. Jane’s practice focuses on Women’s Retirement Planning and Financial Planning for Women. Her articles have been published on line at NASDAQ, Financial Planning Association and Womenetics.com. Follow Jane on Twitter at: http://twitter.com/moneygal2020

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