Do you think your life would be much easier without a mortgage payment in your retirement? Want to know the advantages of a reverse mortgage?
Broker/Owner Kathy Sperl-Bell invites you to meet a friend and client Bob Burakiewicz, a financial planner. He highlights the advantages of having a reverse mortgage and what it can mean for you in your retirement.
Kathy S: What would life be like if you didn’t have a mortgage payment? Hi, this is Kathy Sperl-Bell of Active Adults Realty in Delaware. With me today is Bob Burakiewicz. Bob refers to himself as the “anti financial planner” planner.
Bob Burakiewicz: I help my clients get more income in retirement with less risk and fewer taxes.
Kathy S: That’s a good thing. Bob was also a client of Active Adults Realty and he and his wife relocated to Delaware-
Bob Burakiewicz: 10 years ago.
Kathy S: Wow. Time flies when you’re having fun. So, Bob.
Bob Burakiewicz: I recently read a study from Harvard University that says 60% of the people over 65 still have a traditional mortgage and that there are $6 trillion dollars worth of housing wealth in those houses.
Kathy S: Wow, that’s a lot of wealth. You know when we were talking about that, I looked back at our buyer clients just in the year 2019 and found that fully 70% of them were purchasing their retirement home using a mortgage. Now it’s possible that they will, once they sell the family home, pay that mortgage down using what’s called recasting.
Bob Burakiewicz: You did an excellent video with Pete Green talking about the recastING.
Kathy S: I would recommend you go back and take a look at that. Now, what role could a reverse mortgage or what’s called a HECM, H-E-C-M, what role could that play?
Bob Burakiewicz: Well, it’s just like your title said. What would life be like without a mortgage? There’s no mortgage payments in retirement. You can take a monthly income from your housing wealth. You can pay for longterm care from those proceeds. You can delay taking social security. Every year that you delay taking social security, the benefit goes up by 8%. So that could be a 24% to 32% higher income in retirement.
Kathy S: Wow, that’s significant.
Bob Burakiewicz: It is.
Kathy S: That is really significant. For many people, their biggest financial asset is their home.
Bob Burakiewicz: That’s correct.
Kathy S: So in real estate, we talk about the three L’s. Location, location, location, and in financial planning you have what you call the four L’s.
Bob Burakiewicz: Right. Talk about longevity, which is a risk multiplier. Need to always take that into consideration. Next would be lifestyle. What kind of lifestyle are you’re living? That has to balance with legacy. How much legacy do you want to leave? So we’ll take a look at both of those things. The last one would be liquidity. Those would be the four L’s.
Kathy S: Right. There are many tools available to you from a financial planner like Bob, because we baby boomers, we are living longer lives. We want an active lifestyle, but we still want to leave a legacy to our children and grandchildren. So I’m sure you would agree. Be careful where you’re getting your advice.
Bob Burakiewicz: Internet advice is not the best.
Kathy S: No. I saw it on the Internet. That’s not advice. Consult with your financial planner. I’m going to put Bob’s contact information below in case you do not yet have a financial planner. Whether it’s real estate, finances, please make sure you’re dealing with a qualified individual.
Bob Burakiewicz: That’s correct.
Kathy S: Not the Internet.
Bob Burakiewicz: That’s right.
Seeking help from a Financial Planner? Get in touch with Bob here: https://www.linkedin.com/in/bobburakiewicz/
Ready to make your move? Find your place to retire in Delaware by requesting our FREE Relocation guide here: http://bit.ly/2z3YcQh