Why Reverse Mortgages May Make Sense as Retirement Funding Tools
Tapping into your home as an income source may be a good idea for some retirees, says contributor John Wasik. Here's what to consider.
Few, if any, retirees like the idea of going into debt to fund retirement. Yet with more and more households coming up short on cash savings, millions of retirees have turned to reverse mortgages as a source of retirement income.
Although hardly ideal for financing retirement, reverse mortgages may help close an estimated $4 trillion retirement funding shortfall, according to an estimate by the Employee Benefit Retirement Institute.