USA Today Lists Reverse Mortgages as a Key Nest Egg Booster

by Alex Spanko 

USA Today listed reverse mortgages among multiple potential options for retirees to build their nest eggs, specifically pointing to the Home Equity Conversion Mortgage’s line-of-credit feature.

Citing Kerry Uffman, founder of TWRU Private Wealth Management in Baton Rouge, La., writer Robert Powell positioned the product as a potential solution for long-term savings shortfalls.

“Having a reverse mortgage with a line of credit provides homeowner with money they can tap into later in life,” Powell wrote. “What’s more, Uffman says, the line of credit grows at a rate higher than that of a conservative investment portfolio.”

The USA Today piece also noted that homeowners with a HECM are not responsible for monthly mortgage payments, another key possible advantage for those who use the loans in retirement.

Among the other tips for soon-to-be retirees were delaying retirement in order to beef up savings accounts, boosting retirement-plan contribution rates, and potentially buying a longevity annuity product known as an ALDA — an advanced life deferred annuity.

But in general, the piece emphasized the importance of attacking retirement from multiple angles, and not using a single solution as a cure-all for an individual’s savings issues. Pointing to a recent report from Stephen Wendel, head of behavioral science at Morningstar, the USA Today piece urged Americans to take a holistic approach with a side of solid advice.

“For example, delaying retirement can be very impactful for one individual but not particularly effective for another,” Wendel wrote in his report, adding: “Personalized advice is essential to help Americans succeed.”