The New York Times erroneously fed false information to its readers about Reverse Mortgages. Jamie Hopkins helped set the record straight in his article on Forbes, an excerpt of which is below. If you’d like to read the entire article, follow the link at the bottom.
“The reality is that a properly used reverse mortgage can be a retiree’s saving grace. Misconceptions about the product, however, are still commonplace, which is hindering better coordination of home equity into comprehensive retirement planning. In the end, reverse mortgages are not for everyone as they are still a form of borrowing with some costs and risks, but when used properly they can improve the retirement of many Americans. Better and accurate media reporting on reverse mortgages is needed to improve perceptions and knowledge on reverse mortgages to ensure that people do not ignore a strategy that could improve their finances and quality of life. As Marguerita Cheng, CFP, the CEO of Blue Ocean Global Wealth, notes, “It’s challenging for advisors to help their clients make good financial decisions when they don’t have objective information.””