Reading, Writing, and Roth for Retirement

529 PLANS IN A RETIREMENT CONTEXT

ROSS A. RISKIN, DBA, CPA/PFS, CCFC, MS TAX

For clients who qualify and wish to remain in their homes, a Home Equity Conversion Mortgage (HECM)—commonly known as a reverse mortgage—can be an important, though often misunderstood, retirement planning tool. By allowing homeowners to access home equity without required monthly repayments, HECMs offer a potential source of cash flow later in life. This article outlines how reverse mortgages work, traces their evolution into a federally backed program under the U.S. Department of Housing and Urban Development, and highlights key considerations advisors should understand before incorporating them into a retirement strategy.