From Dennis Miller of Casey Research:
Two of the top subjects that my Money Forever readers have asked us to cover are annuities, specifically how to pick the right one, and reverse mortgages. My guess they're seeing all those TV ads featuring Henry Winkler and Robert Wagner and wondering if it's right for them.
Quite simply a reverse mortgage is where you give the bank a mortgage on your home based on your current equity. In return, the mortgage company agrees to pay you a certain amount every month for some period of time: until you die, move out, or celebrate your 100th birthday (the age when they’re generally capped). For a reverse mortgage to be a good investment, you have to outlive your expected mortality and stay in your home.
Reverse mortgages have many individualized, variable components. For our purposes, we are sticking to the basic concepts. If you think you are a good candidate, make sure to consult a licensed, professional HUD counselor to help tailor the product to your needs.
If you're considering a reverse mortgage, there are several financial issues you should review first. To help you consider your options, I've put together the Money Forever Reverse Mortgage Checklist...
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