ThinkAdvisor.com, an online resource for financial advisors, registered investment advisors and wealth managers, makes a strong argument for why reverse mortgages should be considered as part of a comprehensive retirement plan.
The article by Ginger Szala references a 2020 study by Ohio State University researcher Stephanie Moulton and Columbia Business School Professor Chris Mayer that concludes for most retirees, home equity is the largest single asset they bring into retirement, even after subtracting mortgage debt.
“Most households do not change residences, even over several decades,” the researchers write, concluding that “tapping home equity through reverse mortgages or property tax deferrals [is] a financially viable strategy.”