“My associates at Texas Tech and I have researched the use of a reverse mortgage as a market volatility risk management strategy and an alternative to traditional longevity insurance. Our conclusion is that reverse mortgages should be considered in both cases. . . . one more reason for advisors to consider reverse mortgages in planning for their clients.”
- Harold Evensky, CFP, President of Evensky and Katz
Think about your senior clients and the impact that a six-figure long-term care expense could have on their financial plans. How might that affect their goal to pass assets on? The senior care planning conversation can help mitigate the impact on inheritance and the need for heirs to help fund their parents’ care. In addition, this conversation may also be helpful to have with your 40-50-year-old clients, as a means to help to engage and educate their parents and siblings as potential wealth management clients for their own planning needs.
Baby boomers were named for the post-WWII population explosion, but for millions of families the real explosion may occur as the senior care issue impacts their financial plans. The lucky ones will work with their advisors to architect a plan that addresses contingencies in advance -- and one that serves the best interests of both boomers and their heirs.
Phil Walker is the vice president of the financial planner division and business development at American Advisors Group. American Advisors Group is the leader in reverse mortgage lending in the United States. For tools and more information visit https://www.aag.com/financial-advisors.