But his attitude changed, he said, when he looked more closely at what is the product and what he can do. Today, she recommends reverse mortgages for customers when she believes they can be appropriate in specific situations.
TRAVEL TO UNDERSTANDING
When asked if he was open to incorporate reverse mortgages in his customer’s retirement plans, Gustafson explained that it was not exactly his first option. But after learning more about some friends who were specialists in reverse mortgages, he decided to take the initiative to obtain more information about a product that had the leg that despises control.
“My mentor financial advisor was very against them, so it really was about learning more about them,” he said. “I have a couple of specialists in reference with those I work when I am getting into that inverse mortgage space, when I have a client that I think could be a good option for it. I don’t use everyone, what is one of the thoughts?”n
Gustafson was part of Network International (BNI) at one time at the beginning of his career, and his group included a specialist in reverse mortgages. Even recently just out of the reverse mortgage opposition of his mentor, became friends with the specialist in his group and begged his educational understanding of the product category at that time.
He learned about the wave of regulatory changes and consumer protections that have been constantly added to the product during the last decade. Having some real success stories shared with her, they increased their confidence in product control, he explained.
“His exchange of real -life experiences around what customers were using it helped me learn more about space and be more open to it,” said Gustafson. “And he introduced me to other advisors who were using it.
“You don’t always want to be the first person to jump from a shelf, so to speak, but talking with another advice that was real, use it and demonstrate that it was successful, and then capable of help Be open to it.
Better use cases
If the objectives set in the conversations include leaving assets or properties to heirs, an inverse mortgage may not be the best option. But Gustafson has identified a couple of use cases that fit a little better to the needs of a client.
“Where I use it more is when I have customers than really because they will retire early, but maybe they don’t have cash flow for it,” he said. “Eliminating the payment of the mortgage or even the creation of cash flow. Often, your home is your biggest asset. But doing a lot of education about how there have been many changes in the space of reverse mortgages and bringing to talk to it, helps speak.”
Finding resistance is common, he said. But in an active case, he was able to help a client to withdraw early that otherwise could not have allowed it due to continuous obligations to pay the deadline.
“We were able to eliminate the payment of the mortgage so they could retire early, and have no children,” he explained. “They keep a lot about the equity in anyone’s home. If you don’t need to leave anyone and have enough resources, it becomes more viable.
“Many people still look at their homes as their long -term care policy, so working through stress tests on customer needs is useful, and I have also used it in situations where we are doing fiscal planning.”
While estimating that less than 10% of their customers make use of reverse mortgages, three think that this demonstrates its usefulness as a tool to achieve specific objectives.
While it is estimated that its recommendation figure is slightly higher in approximately 15% of customers, less than 10% of “continuing”, partial due to industry reputation challenges.
“I would say that this number will probably increase as we are working with customers looking for that tax free cash flow,” said Gustafson. “Or really because to retire early. There are more and more than those who want to retire early, and the cost of living is really high.”
