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HECM
Retirement Strategies
Strategies for the use of Home Equity Conversion Mortgage (HECM) in retirement
A HECM can be a powerful financial tool when used strategically in retirement. Explore ways it can help you create more financial freedom and peace of mind
1
Pay off a mortgage
Eliminating a mortgage in retirement increases cash flow.
A HECM does not require monthly mortgage payments. Borrower must occupy home as primary residence and remain current on property taxes, homeowner's insurance, the costs of home maintenance and any HOA fees
2
Stand-by credit line
A retirement strategy where the homeowner uses the credit line as a bucket to draw form during bear markets
3
Long Term Care Protection
Set up a credit line and let it grow untouched, to use only if needed
4
Emergency Back-Up
​Set up a credit line to use only as needed
5
Tenure Payments
Tax-free lifetime income stream, thereby reducing the need to make withdrawals from tax portfolios
6
HECM for Purchase
​Use the HECM to purchase a new home ("right-size") and invest the difference for retirement
7
Divorce Settlement
Use the HECM to buy out a spouse's portion of the home without selling or withdrawing funds from portfolio
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