Rightsizing to our Retirement Dream Home

Rightsizing to our retirement dream home

In 2005 my wife was diagnosed with a terminal illness and given 4-5 years, and I became her full time caregiver. At the time I was the President and CEO of a National Investment Firm with 700+ Financial Advisor’s based in Omaha, NE. In 2006 at age 59 I decided to retire and move to San Diego to focus on my wife’s health out of the snow and enjoy your wonderful weather. To be sure this is where we wanted to live, I leased a home in Olivenhain for $4,500 a month. After three years without snow and below 0 degrees in the winter we began looking for our Retirement Dream home.

In 2009 I purchased a home in the Aviara section of Carlsbad. My intention was to pay cash since we did well on the sale of our home in Omaha. After I made an offer Wells Fargo Mortgage called me and suggested in lieu of paying cash I may want to consider a new product “Reverse for Purchase”, frankly, I was hesitant about Reverse Mortgages of any kind. After providing me with an overview of the product I decided to take an in-depth look as a CFP .

When I confirmed the following facts, The loan was non-recourse and that I only had to make a 40% down payment. Have no mortgage payments for as long as I lived in the home and keep the 60% working for me in the market. I did have to pay the Real Estate Taxes and Homeowners insurance. I moved forward with the Reverse for Purchase.

The home needed extensive work to accommodate my wife’s disability, so I spent $150,000 out of pocket on the remodel. In 2012 the value of the home had increased substantially, I refinanced the home with a new Reverse Mortgage at a lower fixed interest rate and received $165,000. I was able to put back in my pocket my cost of the remodel.

I have lived here since Jan. 10th, 2012, I have never made a house payment, the lien against the home is approx. $625,000 which includes principal borrowed plus accrued interest. Current market value is $1,850,000

After my wife passed, I began a new career, based on my own experience financing my Retirement Dream Home.

I now own “Retirement In Reverse” collaborating with Financial Advisors, Insurance, Agents and CPAs as a CFP to enhance their client's retirement plans using Reverse Mortgage Products.

Planning for the Future: How CFPs Can Guide Clients Through Rightsizing with Confidence

As a Certified Financial Planner, you’ve helped clients prepare for retirement, fund their grandkids’ education, and navigate market shifts. But one topic that often gets overlooked—and yet can have a major financial and emotional impact—is housing. Specifically, helping clients think through when, why, and how they may want or need to rightsize.

Rightsizing isn’t about giving something up—it’s about aligning a living situation with a person’s lifestyle, health needs, and financial goals. And when clients are in or approaching their later years, housing becomes more than just a place to live. It becomes a tool for creating peace of mind, freeing up equity, and ensuring access to care and connection.

Why You Should Start the Conversation Early

It’s human nature to avoid big life changes until they’re absolutely necessary. But waiting until a health crisis or family emergency forces a decision often leads to stress, rushed choices, and greater expense. You can be the voice of reason, helping clients look ahead and explore options on their own terms.

Some clients may want to move closer to family, others may consider downsizing to simplify life or reduce expenses. Still others may want to explore communities with built-in social connections and care services. By addressing this proactively, you can help them understand:

What their current home is really costing them (maintenance, utilities, property taxes, accessibility upgrades).
Whether their space still matches their lifestyle or future needs (stairs, yard work, isolation).
What options exist—from active adult communities to independent or assisted living—and what those choices cost.
How to pay for it—including using home equity, retirement income, or a reverse mortgage for purchase.

Your Role as a Trusted Resource

You don’t need to have all the answers—but you do need to ask the right questions:

Have you thought about where you want to live 5 or 10 years from now?
Would a smaller home or a different location make life easier or more enjoyable?
Are you planning to age in place, or would you be open to exploring other living arrangements?
If you needed care in the future, how would you pay for it?

Opening the door to these conversations may feel personal, but your clients are likely looking for someone they trust to bring it up. When you do, you’re not just helping them manage money—you’re helping them protect their quality of life.

Aligning Housing Decisions with Financial Planning

Whether it’s unlocking home equity, evaluating long-term care insurance, or helping a couple decide when to sell their family home, your guidance can turn a difficult transition into a thoughtful plan.

And remember—planning doesn’t mean moving today. It means your client has time to explore, visit communities, talk with family, and create a roadmap that fits their vision for the future.

Could This Strategy Benefit Your Clients? Let’s Find Out!

Do any of your clients fit this scenario? Retirement in Reverse would be happy to provide a customized, hypothetical scenario to help you assess if this strategy could be a valuable solution. Let’s explore how we can make it work for your clients!

Who would have ever thought you could use a reverse mortgage for this?

Today’s reverse mortgage is no longer the loan of last resort. It’s a flexible financial tool that can be used strategically for:

Charitable giving
Buy-sell agreements
Paying for long-term care or in-home support
Funding a business venture
Helping Grandkids Fund College Expense
Gift down payment to your Kids
Any many more….

It’s all about what the money costs. It’s just math.

Retirement In Reverse offers Objective, Competent Advice to help you make informative decisions for your clients.
Furthermore, we have No Conflict of Interest, as we do not sell Financial Product, nor enter into financial planning engagements. We share your commitment to your clients’ financial stability and quality of life.

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Optimizing Social Security Benefits: How Home Equity Can Help You Retire on Time

July 15, 2025

As a financial advisor, guiding your clients through the complexities of Social Security is key to securing their retirement. One of the most important decisions retirees face is when to start claiming their Social Security benefits. Although benefits can be claimed as early as age 62, delaying this decision often results in significantly higher monthly payments. However, this decision is not always straightforward, and factors such as health, employment status, and marital situation can all play a role in determining the optimal timing. Understanding the tax implications and exploring alternative income strategies, such as leveraging home equity, can help you provide valuable insights to your clients. Social Security benefits are taxable , and the amount owed depends on total income. Given the market conditions today, many retirees are considering ways to maximize their Social Security payouts while minimizing taxable income. Key Considerations for Claiming Social Security Will your client continue working? Claiming Social Security before full retirement age while working can result in reduced benefits. Are they married? Spousal benefits can be crucial in optimizing household income. What is their health status? Life expectancy is a key factor in deciding whether delaying benefits makes sense. Delaying Social Security benefits generally leads to higher lifetime payouts. However, waiting can create income gaps in the interim. For clients who want to postpone Social Security while maintaining financial flexibility, home equity can serve as an effective solution. Leveraging Home Equity for Retirement One strategy to help clients delay Social Security benefits is by utilizing home equity. With a reverse mortgage, clients can access their home equity to supplement retirement cash flow. Since reverse mortgage proceeds are not considered taxable income, they can provide a tax-efficient way to bridge the gap, allowing Social Security benefits to grow. Case Study: Steve and Alice Clients: Steve (66), Alice (63) Home Value: $1,150,000 | Mortgage: $0 Steve plans to retire at 70, and Alice will retire at 67. Both are in good health. Assets: Steve: IRA $125,000 | 401(k) $456,000 Alice: CalPERS pension $3,745/month | Retirement annuity $174,000 Joint investment accounts: $850,000 Monthly Expenses: Utilities: $350 Property Taxes: $635 HOA: $180 Car Insurance: $187 Food and Entertainment: $3,000 Total: $4,165/month Steve and Alice plan to defer Social Security, CalPERS, and 401(k) distributions until age 71. To help bridge the gap, they applied for a reverse mortgage that offers a $371,000 line of credit. The unused balance will grow annually at 6.25%. By age 71, Steve and Alice will have created a "perfect hedge" with an irrevocable line of credit that remains available for as long as they live in the home. With no required principal or interest payments, this strategy allows them to delay Social Security without sacrificing financial security. As a financial advisor, helping clients optimize their Social Security benefits while preserving their home equity can significantly enhance their retirement strategy. Although using home equity is not the right solution for everyone, for those looking to maximize their Social Security payouts and maintain steady income, it can be a powerful tool. By considering all available options, you can guide your clients to make informed, confident decisions that support their long-term financial goals. Could This Strategy Benefit Your Clients? Let’s Find Out! Do any of your clients fit this scenario? Retirement in Reverse would be happy to provide a customized, hypothetical scenario to help you assess if this strategy could be a valuable solution. Let’s explore how we can make it work for your clients! Retirement In Reverse offers Objective, Competent Advice to help you make informative decisions for your clients. Furthermore, we have No Conflict of Interest, as we do not sell Financial Product, nor enter into financial planning engagements. We share your commitment to your clients’ financial stability and quality of life.