New York Regional NRMLA Conference Offers Useful Information – Part ONE – Understanding Finacial Planners

21 Mar

Tradition Title Agency was a sponsor at the NY Regional Conference, and we picked up a lot of useful information, which we’ll be sharing with you here over the next few days.

Tuesday’s sessions included workshops on Understanding Financial Planners, New CFPB Rules, HECM Updates From HUD, and discussions on the new product mix and its effects on the reverse mortgage industry.

Judd Lyman, trainer at Liberty Home Equity Access, led the session on Financial Planners/Financial Advisors to kick off the conference.  Financial Planners are valuable partners for reverse mortgage lenders, and it is important that mortgage professionals learn to speak their language.

The Wealth Management Team for a Financial Planner includes attorneys, CPAs, Insurance Agents, and Estate Planners: all further contacts that can help position a reverse mortgage specialist as part of the Financial Planner’s team.  Industry-wide designations to look for are CFP (Certified Financial Planner), AWMA (Accredited Wealth Management Advisor), AAMS (Accredited Asset Management Specialist) as well as a Personal Retirement Planning Specialist or a member of the Association of Chartered Senior Financial Planners.

Financial Planners are guided by the principle of a fiduciary standard of care, where clients’ interests come first.  They often use the “Monte Carlo” method to model asset management using multiple variables.  And those variables are changing.  We used to rely on the “3-legged stool” of Social Security, pension, and personal savings ti support us in retirement, but no more.  Retirement assets that are drawn down using the 4 percent rule are shrinking. And that’s where a reverse mortgage comes in.

In the example that Judd used, retirement assets that were graphed out as lasting to an age of 74 could be stretched out to age 92 using a $700 per month draw on a reverse mortgage line of credit.  The implications of this are important, and reverse mortgage specialists need to share their knowledge and these facts with their own team of Wealth Managers.

awma logo aams logo cfp logo


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