Date: Wed, 1 Sep 2004 13:22:16 CST
From: Tad Borek 
Newsgroups: misc.invest.financial-plan
Subject: Re: Reverse mortgages
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HW "Skip" Weldon wrote:
> I've always thought of RM as a last-ditch option by homeowners who had
> failed to save enough for retirement.   My opinion is based on the
> long-held view that *planning* to consume principal should be avoided.
> 
> It appears that RMs are enjoying something of a renaissance and would
> enjoy reading what others thought of them today.  Any comments?

Skip,
I think the rhetorical question every retired homeowner should ask is, 
"what's the value in dying with a home you own outright?" For some 
that's part of the estate plan. But others don't want/need to have that 
leftover for heirs. There may not even be any heirs.

And it doesn't necessarily indicate deficient retirement savings. 
Whether it's saved in stocks or in home equity, the money is still 
there. It's just that home equity is only accessible through borrowing 
or sale.

And of course, $300k can be annuitized into a lot of really enjoyable 
travel!

-Tad