Financial services professionals are here to serve clients and make their lives better. Advisors who believe they act in the best interest of their clients need to consider including home equity and, consequently, reverse mortgages into their practices when doing retirement income planning. A best-interest model requires the adviser to review those factors that might reasonably impact any recommendation. The home, a potential reverse mortgage, or an existing forward mortgage are clearly factors that need to be considered when reviewing a client’s financial plan. While many advisers do review the existing mortgage and perhaps recommend refinancing, this is usually where the advice stops -= leaving a wide range of factors affecting the client’s situation unexplored.
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