How to Use Reverse Mortgages to Secure Your Retirement, by Wade Pfau
This is an interesting book. It goes against much of the conventional wisdom I absorbed growing up. I read it because I was impressed by Wade Pfau’s other book on withdrawls in retirement. He does and in depth and academic review of the subject. Wade’s style might be a bit dry for some but I find that the genre of financial writing can be a bit hyperbolic, so I don’t mind an objective and academic style.
Use early, use often
The primary conclusions of the book are that many retirees could benefit from a reverse mortgage, and that it is more efficient to use funds from a reverse mortgage early in retirement than as a last resort. Both these conclusions were surprising to me. I had been taught that a reverse mortgage should be a last resort and used only when all other funds were exhausted. According to Wade and his models, this is not the case. Using funds from a reverse mortgage early on, to delay taking Social Security, or to fund retirement in a market downturn to avoid sequence of returns risk is more valuable than keeping it in reserve for the end of retirement.
Would Recommend
All in all, for those wanting to broaden their perspective and add another tool to the retirement toolbox, this is a good one to read. The depth of detail, and strategic information make it a valuable addition to your arsenal.
