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Joined: Dec 2002
Posts: 26,129 Likes: 21
Campfire Ranger
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Campfire Ranger
Joined: Dec 2002
Posts: 26,129 Likes: 21 |
It seems to me, the biggest objection to the RM comes from those who are pissed because someone spent their inheritance.
People who choose to brew up their own storms bitch loudest about the rain.
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Joined: Dec 2005
Posts: 3,180 Likes: 7
Campfire Tracker
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Campfire Tracker
Joined: Dec 2005
Posts: 3,180 Likes: 7 |
My wife is a certified financial advisor and she states a reverse mortage is a poor choice. She also doesn't recommend annuities or life insurance. I would say your wife is 100% right, assuming on life insurance she is referring to things like whole life (junk) and not term. If one needs a reverse mortgage they are likely spending more than they should based on their nest egg or have prematurely run out of money. It’s about that simple IMO.
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Joined: Jul 2013
Posts: 1,116 Likes: 8
Campfire Regular
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OP
Campfire Regular
Joined: Jul 2013
Posts: 1,116 Likes: 8 |
It seems to me, the biggest objection to the RM comes from those who are oissed because someone spent their inheritance. seems to be.....bob
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Joined: Aug 2009
Posts: 20,824
Campfire Ranger
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Campfire Ranger
Joined: Aug 2009
Posts: 20,824 |
I say do it Bob, you are smart enough not to agree to a bad contract. Go elephant hunting!!!!
Originally Posted by Judman PS, if you think Trump is “good” you’re way stupider than I thought! Haha
Sorry, trump is a no tax payin pile of shiit.
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Joined: Jun 2002
Posts: 132,072 Likes: 65
Campfire Sage
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Campfire Sage
Joined: Jun 2002
Posts: 132,072 Likes: 65 |
I'd hate the thought of an elderly parent doing without in order to pass and inheritance to me. I'd rather they spend their home equity to improve their quality of life. This.
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Joined: Jul 2013
Posts: 1,116 Likes: 8
Campfire Regular
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OP
Campfire Regular
Joined: Jul 2013
Posts: 1,116 Likes: 8 |
My wife is a certified financial advisor and she states a reverse mortage is a poor choice. She also doesn't recommend annuities or life insurance. I would say your wife is 100% right, assuming on life insurance she is referring to things like whole life (junk) and not term. If one needs a reverse mortgage they are likely spending more than they should based on their nest egg or have prematurely run out of money. It’s about that simple IMO. most cases I would agree....bob
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Joined: Jul 2013
Posts: 1,116 Likes: 8
Campfire Regular
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OP
Campfire Regular
Joined: Jul 2013
Posts: 1,116 Likes: 8 |
I say do it Bob, you are smart enough not to agree to a bad contract. Go elephant hunting!!!! that's the spirit!...its this kind of thinking that has made America great!.....the next hunt elephant hunt is funded already...this will make it easier to do more. still on the fence......bob
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Joined: May 2016
Posts: 61,009 Likes: 72
Campfire Kahuna
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Campfire Kahuna
Joined: May 2016
Posts: 61,009 Likes: 72 |
One thing to consider.....is that children are not entitled to shìt. Perhaps but this isn’t a one size fits all answer. Some people like me will choose to leave my kids something upon death, but it’s not their God given right, it’s what we want to do as a couple. Seems like you have a chip on your shoulder. You do what you want. If that entails giving your kids everything and them throwing your broke ass in the shìttiest nursing home they can find...so be it.
I am MAGA.
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Joined: Dec 2005
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Campfire Tracker
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Campfire Tracker
Joined: Dec 2005
Posts: 3,180 Likes: 7 |
Do more research Bob, and who knows maybe it’s still the right choice for you. But if I could fund my trips elsewhere it may prove to be a cheaper alternative.
Some of this stuff is hard when we don’t know how long we will live, knowing that financial planning would be a breeze.
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Joined: Dec 2005
Posts: 3,180 Likes: 7
Campfire Tracker
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Campfire Tracker
Joined: Dec 2005
Posts: 3,180 Likes: 7 |
One thing to consider.....is that children are not entitled to shìt. Perhaps but this isn’t a one size fits all answer. Some people like me will choose to leave my kids something upon death, but it’s not their God given right, it’s what we want to do as a couple. Seems like you have a chip on your shoulder. You do what you want. If that entails giving your kids everything and them throwing your broke ass in the shìttiest nursing home they can find...so be it. I rest my case. Take a nap you may feel better when you wake up.
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Joined: Feb 2017
Posts: 217
Campfire Member
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Campfire Member
Joined: Feb 2017
Posts: 217 |
In certain narrow circumstances it can be an amazing deal. I was in class and the teaching attorney asked how many would do a RM, not a hand went up. He went on to explain how GIVEN THE CURRENT RULES AT THAT MOMENT.
You could sell a paid off house for 333K Buy your wildest dream house of 1M 1/3 down cash.
Live in your dream house until death while being paid for doing it.
After explaining the details he said now about your heirs... tell them to get a job. He was a great teacher and your quintessential cold blooded attorney. But he sure made a boring class fun. He's dade now, hope his heirs took that job
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Joined: Jul 2013
Posts: 1,116 Likes: 8
Campfire Regular
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OP
Campfire Regular
Joined: Jul 2013
Posts: 1,116 Likes: 8 |
Do more research Bob, and who knows maybe it’s still the right choice for you. But if I could fund my trips elsewhere it may prove to be a cheaper alternative.
Some of this stuff is hard when we don’t know how long we will live, knowing that financial planning would be a breeze. will do...thanks for yours and everybody's comments...bob
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Joined: Jan 2001
Posts: 14,360
Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2001
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Reverse mortgages are a win-win for the banks, and a trap for the homeowners. If you're still paying on the house with a substantial balance on it, even if it has quite a bit of equity in it, they don't even want to talk to you. If it's paid off or close to it, they would make a loan on what they consider it is worth, estimate your remaining life span and set monthly payments to you accordingly. In the meantime, you are still responsible for the taxes, home insurance, Interest on the loan, and all maintenance. Let something lapse, don't keep up the place to their way of thinking. They evict you. If they find out you are not living in the place, they evict you. Unless you have a wife and are legally married to leave it to and she wants to stay in the place. It's a losing proposition.
Phil
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Joined: May 2016
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Campfire Kahuna
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Campfire Kahuna
Joined: May 2016
Posts: 61,009 Likes: 72 |
One thing to consider.....is that children are not entitled to shìt. Perhaps but this isn’t a one size fits all answer. Some people like me will choose to leave my kids something upon death, but it’s not their God given right, it’s what we want to do as a couple. Seems like you have a chip on your shoulder. You do what you want. If that entails giving your kids everything and them throwing your broke ass in the shìttiest nursing home they can find...so be it. I rest my case. Take a nap you may feel better when you wake up. What is it about you mid west guys? Sheesh.
I am MAGA.
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Joined: Feb 2010
Posts: 16,187 Likes: 5
Campfire Ranger
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Campfire Ranger
Joined: Feb 2010
Posts: 16,187 Likes: 5 |
Seriously, would it not be better to cash out and rent a place? greg I don't need to do that.....bob I understand this. I’m a numbers type guy, and was trying to give you another option to consider. To me, a reverse mortgage removes too many variables from my control. There are just too many variables in the future you aren’t able to accurately predict. How long will you live? How will your health be? Will you value the same things ten years from now you value today? Again, I’m a numbers oriented guy. I’d love to travel to Africa, but I just can’t justify the cost in my mind. I’m likely missing out on something great, but that’s just how I’m wired. I’d prefer to die with money lleft rather than become broke and homeless with five or tens years left.
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Joined: Jan 2008
Posts: 15,791 Likes: 3
Campfire Ranger
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Campfire Ranger
Joined: Jan 2008
Posts: 15,791 Likes: 3 |
My wife is a certified financial advisor and she states a reverse mortage is a poor choice. She also doesn't recommend annuities or life insurance. I would say your wife is 100% right, assuming on life insurance she is referring to things like whole life (junk) and not term. If one needs a reverse mortgage they are likely spending more than they should based on their nest egg or have prematurely run out of money. It’s about that simple IMO. She is a mutual funds salesperson. Lots more to planning.
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Joined: Jan 2009
Posts: 810
Campfire Regular
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Campfire Regular
Joined: Jan 2009
Posts: 810 |
I haven't read this whole thread but have had direct experience with one when my Father in Law passed away. The first the family knew about the reverse mortgage was the phone call a day or two after he passed away. They wanted the deed and they wanted it then. With a little research we found out they had a loan to him for way less than the house was worth. We cleared out the house and put it on the market. It sold in short order and the loan was paid off. During this period there were daily harassing calls wanting to get the deed for the property. At a very emotional time for most families you don't need some jerk harassing you about a reverse mortgage. It's bad enough to have to clean out your parents house in just a day or two. Read the fine print, check out a loan from your bank, get some legal advice and don't listen to the smooth talking actors on TV. Keep in mind they are actors, getting paid for what they are saying. One last thing, if you have family, let them know what you are planning. They may have anther solution. Even if they don't, they wont be blind sided when you die.
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Joined: Dec 2005
Posts: 10,340 Likes: 6
Campfire Outfitter
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Campfire Outfitter
Joined: Dec 2005
Posts: 10,340 Likes: 6 |
For the person/couple that has no heirs, or does not wish to leave anything, AND wants to stay put, AND doesn't care what happens to the house after THEY are gone.... A RM might be OK, IF it provides a monthly stipend for the rest of their lives....
bottom line, the RM Co. has done the math and knows when, or very nearly, you are going to croak.... you will only 'win' if you live longer than expected!
For the most part, I can't see where it ever passes the simple dollar ROI equation!
IMHO...
Last edited by Muffin; 02/02/24.
"...A man's rights rest in three boxes: the ballot box, the jury box and the cartridge box..." Frederick Douglass, 1867
( . Y . )
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Joined: Aug 2006
Posts: 12,584 Likes: 1
Campfire Outfitter
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Campfire Outfitter
Joined: Aug 2006
Posts: 12,584 Likes: 1 |
A reverse mortgage is like an annuity. There are very, VERY specific circumstances where they are not a "bad" idea, but the vast majority of the time they are a very bad idea.
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Posts: 4,220 Likes: 5
Campfire Tracker
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Campfire Tracker
Joined: Nov 2008
Posts: 4,220 Likes: 5 |
To be completely honest, in reading through this thread it sounds like you have a bit of a chip on your shoulder about the whole thing and are seeking opinions that will reinforce what you already have decided to do. If you know that’s what you want to do, then I would say forge ahead and do it regardless of the opinion of others. You only live once.l and it sounds like you have your mind made up.
Based on your posts and responses to others it sounds like your say that you already have lots of money, own a ton of stuff that is all nice, new, and paid off, and you don’t ‘need’ to do this. You just *want* to do this as a way of finding activities that you may not otherwise be able to fund. As long as you read close and understand the full implications, I guess it’s for you.
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