Meet Jim and Kathy

Sequence of Returns

They are secure in retirement and claim they do not “need” a reverse mortgage. However, an inconsistent market has them questioning whether they have enough funds to last their life span.

  1. Home Value: $800,000
  2. Payoff: $250,000
  3. Youngest Borrower Age: 65
  4. Probability of portfolio surviving to age 95 without a HECM ($1500/mo draw): 0.8%
  5. Probability of portfolio surviving to age 95 with a HECM ($1500/mo draw): 100%
This example shows how a HECM can extend the longevity of their retirement portfolio by sourcing funds from a HECM Line of Credit (LOC) during times of market volatility. Their financial planner can validate this as an effective strategy for managing sequence of returns risk.
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