Solving Retirement Needs

Solving Retirement Needs Through Home Equity Access

Retirees Have Misconceptions About Solving Retirement Funding Problems 30% Work past age 65 39% 33% Reduce spending Move or downsize Home equity loan or reverse mortgage 40% of seniors are forced out of work early Most underestimate expenses during retirement 95% don’t move Additional 25% are considering using home equity 10% Expectation Reality 9% 12% 5% 11% 25% McKinsey & Company 2008 / Boston College 2007 2

A Real Opportunity … Home Equity ,[object Object],[object Object],[object Object],[object Object],[object Object],Survey of Consumer Finances, Net Worth and Asset Ownership of Households (1995 to 2000) 74% 68% 71% 2 Age Age Age Total Net Worth (thousands)

Multiple Home Equity Options Exist ,[object Object],[object Object],[object Object],Options ,[object Object],[object Object],[object Object],[object Object],[object Object],Disadvantages ,[object Object],[object Object],[object Object],[object Object],[object Object],Advantages 2

Benefits Of A Reverse Mortgage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Feature Benefit 3

Reverse Mortgages Are Misunderstood Lender owns home Myths Retiree continues to own the home Truths Must have significant equity Prepay at any time with no penalty Loan Balance is limited to home value Must own home free & clear Lender can force a move You can outlive the equity Difficult to reverse Owe more than home value 3 Not if retiree maintains home as principal residence, keeps current property taxes and home insurance Tenure options provide monthly payment through loan life

Comprehensive Retirement Planning Should Include Home Equity Asset Allocation Quality of Life Protection “ Financial firms that choose to ignore the home in the retirement planning equation will be doing so at their own peril.” McKinsey 8/2006 4 Cash Flow ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],

[object Object],[object Object],[object Object],[object Object],[object Object],Professional Financial Advisors Preferred ,[object Object],4 44% 3% Financial planners cited as most valued advisor Received advice from financial planner

Solving Retirement Needs

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