1. Reduce Tax Burden on Retirement Income

Reverse mortgage funds are not considered taxable income. That makes them a smarter way to:

• Delay taxable IRA/401(k) withdrawals
• Lower Social Security taxation
• Avoid IRMAA surcharges on Medicare

This coordination can improve after-tax income and extend portfolio longevity.

2. Silver Divorce Planning

Reverse mortgages can provide financial stability in late-life divorce scenarios by:

• Helping one spouse stay in the home
• Reducing the need to liquidate investments
• Creating income for non-earning or lower-earning partner

3. Build a Backstop for Long-Term Care

For clients without LTC insurance, or who want flexibility, housing wealth can:

• Find home care or private-pay assisted living
• Delay or avoid Medicaid drawdown
• Provide options without tapping retirement accounts

4. Add Flexibility to Estate & Legacy Planning

Reverse mortgages can actually help protect other assets by:

• Shifting income needs to home equity
• Preserving retirement accounts for brokerage assets for heirs
• Creating liquidity for gifts, trust, or Roth conversions

5. Navigating Market Volatility with Confidence

Using home equity as a buffer during market downturns helps:

• Avoid selling stocks at a loss
• Maintain a consistent withdrawal rate
• Increase portfolio survival odds—especially early in retirement

6. Defer Downsizing

Instead of selling the home to access equity, clients can:

• Tap into equity now while remaining in place
• Wait for a better real estate market or personal timing
• Avoid unnecessary disruption

7. Delay Social Security

A reverse mortgage line of credit can be used to:

• Cover expenses while delaying Social Security to age 70
• Lock in higher lifetime benefits
• Strengthen survivor benefits—especially critical for single women

8. Create a Longevity Hedge

Unique to reverse mortgages, the line of credit can grow overtime:

• Provides increasing access to equity
• Acts like an emergency fund to future needs
• Preserves other assets during the “unknown years”

9. Deliver Peace of Mind

One of the most underrated (but frequently reported) benefits is emotional:

• Stable housing and improved cash flow reduced financial stress
• Clients feel more secure—even when markets wobble
• Predictable expenses make retirement planning feel more doable

10. Replace a Traditional Mortgage

Many clients benefit from financing into a reverse mortgage:

• Eliminates monthly principal & interest payments
• Improves monthly cash flow
• Reduces drawdown pressure on other assets

CONTACT US TODAY
1-888-256-4654 | Info@freestonemortgage.com
704 Main St, Suite 301, Oregon City, OR 97045