Reverse mortgages have had a negative connotation that they are only for the seniors as a loan of last resort. Here are 5 reasons why the wealthy can use a reverse mortgage to enhance their estate planning.

We can loan up to $4M in Tax Free dollars using Jumbo Reverse Mortgages.

1. Tax free distribution

For every disbursement received from your retirement IRA, Sep-IRA, or 401K you will have an ordinary income tax due based upon your current tax rate. Alternatively, your reverse mortgage distributions are not taxable as income. This allows your current retirement assets to grow with re-investment rather than distribution until the mandatory distribution guidelines kick in.

2. Perfect Hedge against equity market swings

In these times of rising inflation and a Turbulent equity market, use your Reverse Mortgage irrevocable Nontaxable Line of Credit to allow your assets to Rest and Grow.

3. Rightsizing the household

When you sell your $1,000,000 home and pay off a modest $200,000 mortgage and closing cost you net about $750,000 before tax considerations. You could buy a new smaller Retirement Dream Home for $1,000,000 using a Reverse for Purchase put $500,000 down and still have $250,000 to supplement your retirement with NO Mortgage Payments. You must pay real estate taxes and homeowners ins. As you do now.

4. Optimize Social Security Benefits and retire on time

With a reverse mortgage you can delay the social security benefit start date until the maximum payout date. Use your reverse mortgage tax free distributions until you want to start up the social security for optimum benefits.

5. Start the legacy of your dreams

What if you gave a donation to your favorite charity while alive and had the ability to be a part of that mission? 

A reverse mortgage allows you to make the donation while living and reduce your income tax liability without having a monthly payment. Be part of your gift today rather than a plaque on the wall.

Make a gift to children and grandchildren today so you may see and enjoy the benefit of your gift.