“While it is good to have a reverse mortgage as an option on the table, it is usually only a good idea after all other options have been exhausted,” said Michael Minter, managing partner at Mintco Financial, which has offices in Buffalo, N.Y., and Tampa, Fla. “In my view, a reverse mortgage falls into the last resort bin of ideas. None of my clients have them.”
Nevertheless, Klein said clients should always keep that door open.
“While a reverse mortgage isn’t right for everyone, when used correctly and strategically, it may be just the solution to manage cash flow and protect a client’s portfolio in retirement,” she said. But, she added, “the best time to get a reverse mortgage is before it’s needed. A reverse mortgage should never be used as a last resort when all other assets have been depleted. Having this flexible resource available if and when it’s needed can help turn a client’s home equity into a powerful and strategic financial planning tool for decades to come.”