Home Forums Hunting & Shooting Hunter's Campfire reverse mortgage good and bad

Good deal. I assume her folks are in NZ with proper socialized (don't mean it in a bad way) care?

You cold blooded Yankee

Her dad is still living.


I just asked her and she said the system is kind of like over here.


You pay until you can't type of thing. She said her dad will end up paying for all of his own care.



I had assumed that it would have covered by the socialized health care system. I was wrong!

Mail order bride? You devil

I have always told my wife if I got sick....like real sick...no way I would run us broke. I will tap out on my terms.

that is one thing in this life that you can control......bob

how has it been settled?...bob

This guy thinks they're a good idea.

Same here. That just means there's more left overs.

Their normally good for the lenders if the home occupants pass within a few years. I have 38 acres that surrounds a five acre tract with a 6,000 ft home with a reverse on it. The old couple took out a reverse on the home two years after it was built. After thirty years the husband passed the wife in her 90,s went into a nursing home. The pay off to the lender is near $800,000. House likely worth $300,00+ as needs a lot of work. Apparently it worked for them due to length of time they were able to draw monthly on the loan.

The house has sit empty for eighteen months and the government loan agency will not discuss the sale of it with me. They pay a caretaker to check on it and mow the lawn. Our Government as usual doing its poorest. GW

A bit of an aside here. I was at my wife's parent' house about a year ago. Her mother said "I want to talk to you about something and have a question." She said a few more things and then asked if I'd rather them leave us money or would I rather they spend the money on vacations that would sometimes include us. Without hesitation I told them to burn through it however they want to. I had roughly the same conversation with my mother over a decade ago.

You are 100% correct. This is the time for you and your wife.

you said the right thing....the idea that you have to leave something is wrong.....bob

There is absolutely nothing wrong with leaving a legacy. Either in works, ideas, morals or money: I believe all of us should shuffle off this mortal coil leaving something to make it better.

Personally, the difference between having enough to live well in retirement and use it all up and living well in retirement and leaving more than I started with is a comparatively small amount of money.

Let me put some numbers to that.

Let’s say you start retirement with $500,000 in your retirement account, and let’s assume you invest in a diverse stock portfolio, like a total stock market index fund. Let’s also assume you and your spouse draw 25K a year in social security.

If we draw 80% of the net (of inflation) returns off the portfolio a year, that’s an average of roughly 7%, or $35,000.
If we do that, our principal will never be depleted, even accounting for inflation, and we can live on the returns forever. And leave a financial legacy. To kids, grandkids, the local dog shelter, a scholarship fund for a gunsmithing school; whatever you think will leave the world a better place.

If we put that same $500K in a joint life annuity type arrangement (I refuse to call it an investment, because it isn’t) at age 67, you get……..roughly $35,000 a year until you die, and you leave nothing. Oh, but that $35K you get out of that “safe” annuity…. is NOT indexed to inflation, so when you’re 87, it’ll go at most half as far as it does today.

Either way, you have $60K of disposable income per year.