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Reverse Mortgages Make Retirement Plans Easier Thanks to New Software

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Mortgage and Lending with PS Mortgage Lending 305-791-4874 or 888-845-6630 365768

Reverse Mortgages Make Retirement Plans Easier Thanks to New Software

IBIS Software has developed two new software platforms for both loan original and financial planners which will allow them to input reverse mortgages into retirement portfolios based on the 6% rule.

The 6% rule is an upcoming trend in retirement planning, based on the original 4% rule, which states that a person planning for a 30-year retirement, whose portfolio is invested at least 50% in equities, can withdraw 4% of their initial portfolio value in the first year and increase those withdrawals according to cost of living changes. If executed correctly, and if the portfolio performs well in the first few years, then a person (or couple's) "spending success" can increase by up to 90%.

The 6% rule states that a retiree can withdraw up to 6.0 of their portfolio in their first year, on a 30 year spending projection, and still have a spending success ranging from 88 to 92 percent. This is because a reverse mortgage can supplement a retiree's retirement portfolio.

For example, a retiree who has scheduled term payments will have a considerable monthly cash flow boost that will give them plenty of breathing room should their cost of living increase without having to sacrifice their retirement plans.

IBIS Software's new programs will give its user the ability to determine how a reverse mortgage will boost their clients' portfolios. There is no more maybes or "guesstimates." Financial planners can now determine, specifically, how their client will benefit from a reverse mortgage in the long run.

Even more important, the program is up to date on the most recent reverse mortgage changes, so that financial planners and their clients can get the most recent information and adjust plans and strategies accordingly. In addition, the program boosts access to various types of reverse mortgages, including the fixed and adjustable rate reverse mortgages, all of which are insured by FHA.

While the program is still fresh off the presses, it's a development that will make the lives of loan originators, financial planners and consumers a lot easier. With a few clicks of a button, financial planners can give their clients the most up to date information, accurately determining how much a reverse mortgage will improve their retirement (and spending success) in the future.

Interested in a reverse mortgage or simply want more information? Give PS Financial Services a call at (888) 845-6630 or via email at info@PSReverseMortgage.com.

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Information and content in this blog is original to Phil Stevenson

Please click the "SUBSCRIBE TO MY BLOG" button on the right, and receive more Traditional and Reverse Mortgage information in Florida and other parts of the US & Puerto Rico.

 

Phil Stevenson

PS Financial Services

Owner and Principal Mortgage Originator

Certified Reverse Mortgage Professional (CRMP)

LO #365768

NMLS #968090

Cell: 888.845.6630

Miami Mortgages & Florida Mortgages

Copyright © 2013 by Phil Stevenson & PS Financial Services, LLC

Comments (4)

Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Phil, What is the average life span of a reverse mortgage? Can they expect to use it for more than 10 years?

Bill Roberts

Jan 22, 2014 01:56 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Bill, I don't know the exact average life span because borrowers decide to sell their home or pass away so it depends on a case by case basis or how a borrower decides to use their funds. Officially, as long as you live in your primary residence, you can use it until your 150th birthday.

Jan 22, 2014 02:09 AM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Thanks Phil, I only plan on living 'til 130. Good information.

Bill Roberts

Jan 25, 2014 12:09 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Bill, you're very welcome!

Jan 26, 2014 11:09 PM