Signature RM Blog

It’s still possible to retire in Michigan. It just takes a few more tools and a little more practicality than before.

Time was when you could chart your retirement course and all the options and decisions were obvious and appealing.

We all know that the landscape has changed however. That’s why more and more seniors are turning to their Michigan real estate to help fund their retirement.

In light of recent market movement, many retirees’ nest eggs have been reduced. In order to prolong the life of their investments, it’s essential that these seniors stop invading their principal, so that their investments and assets can recover.

Now I love my home as much as the next guy, but I realize that a home with a reverse mortgage on it will continue to appreciate: However a liquidated retirement fund will never recover. Using the reverse mortgage, you can keep more money under management, at a time when assets should be preserved.

And the flip side is that you won’t be paupering yourself to pay off a depreciating asset, Michigan real estate.

As for most seniors' desire to leave a legacy to their kids: First, the kids will be better off with a liquid investment portfolio than an illiquid home to sell into the market. And of course, they’ll still have ownership of the home and its equity for when this market recovers.

A recent client provides a perfect example of the numbers involved here. They hold an investment portfolio worth approximately $450,000. Based on life expectancy and their monthly needs, they’ll burn through their nest egg by the time they hit 87. The problem is that our client’s grandfather lived to be 92, and his father lived to be 90.

Part of the $3000 that my clients draw each month goes towards a $700 mortgage payment. That same $700 per month, left to compound at 5% over 20 years amounts to $287,000. This is money that has been left to grow in the portfolio! This is money that extends their nest egg horizon beyond their life expectancy!

It’s a proven fact, a reverse mortgage will cost less then a used up and exhausted portfolio. And with this strategy, your client will slow the drawdown of their principal to positively impact their net worth and long term financial well-being.

And that means a lot of beautiful days retired in Michigan!

Doug Browne, Signature RM

Signature RM presents informative seminars geared to help senior citizens map out a plan for their retirement years.  Using the Reverse Mortgage as part of a 'rainy day' strategy, Signature is helping senior citizens to control their lives, especially in today's challenging world.

Come join us to learn about this important financial option.

Topics of discussion include:

• Keep your home AND keep your savings.
• Eliminate monthly mortgage payments.
• Receive tax-free monthly cash flow or take a lump sum payment.
• Common misconceptions about the reverse mortgage.
• Impacts on your medicare / medicaid / long term care plans.

Upcoming Reverse Mortgage Seminar Schedule:

June 3, 2009 – Bloomfield Hills
June 4, 2009 – Waterford Twp
June 10, 2009 – White Lake
June 17, 2009 – Bloomfield Hills

Call us to register at (248) 406-3213

If you are unable to attend one of our seminars, we can provide a private consultation at your convenience.

You can also visit us at the following locations:

June 10, 2009 – Northville Senior Picnic
June 18, 2009 –Dublin Center Expo

We look forward to seeing you there.