Financial Planner Explains How To Open A Reverse Mortgage Loan And How To Get More Participation Opportunities



Reverse mortgage lending professionals often turn to the financial planning community as a source of guidance as planners can help provide the necessary clarity to their clients who are looking to preserve financial assets and ensure ongoing stability. This is especially true for those who can live on a fixed income, and coupled with a general lack of awareness or even outright hostility towards reverse mortgages that many people support.

Education is key, as is an honest assessment of a person’s finances, which is why Robert Klein, founder and president of the Newport Beach, California-based Retirement Center, views reverse mortgages as a means of providing financial security for certain clients. After writing several columns recently on how reverse mortgages can be used in a comprehensive financial plan, Klein sat down to a new issue of the RMD podcast to discuss how and why reverse mortgages make sense for financial planners to study for specific clients.

Klein’s own discovery of reverse mortgages as a tool

Klein’s career as a financial consultant dates back to the 1980s, when he was a CPA at CPA. While working as a CPA, he became more interested in financial planning due to his particular client orientation in this area, which led him to work for a large financial planning firm that was pioneering in providing comprehensive retirement planning services.

Robert Klein

However, with the landmark Tax Reform Act of 1986, signed by President Ronald Reagan, Klein returned to the CPA realm to learn about all the new realities that legislation has introduced into the American tax system. He continued to work in the CPA field until he opened his own CPA firm in 1989, which eventually led to his founding a holistic financial planning company.

When it comes to his discovery of reverse mortgages as a potential financial planning tool for seniors, Klein describes the work of a renowned educator in the reverse mortgage industry as key to his development as a planner that encourages his clients to explore the possibilities of reverse mortgages.

“As a financial advisor attending conferences, I’ve heard about reverse mortgages. Through the educational process and over time, I realized that I needed to learn more about them. I just had the feeling that they were an important part of planning for retirement income, ”Klein tells RMD in a new episode of the podcast. “And then, of course, I attended a seminar sponsored by Ed Slott. I am a member of Ed Slott’s elite IRA advisory team and had Don Graves from [HECM Advisors Group]… Don Graves is an education expert when it comes to reverse mortgages, and he said [about] basic information about the importance of the participation of financial advisers in [reverse mortgage] industry.”

Klein was fascinated by Graves’ description of the housing asset as the main component of the net worth of many clients, and it was through these presentations that Klein found himself fascinated by the topic of reverse mortgages and had a desire to learn more about them. he could find work in his financial consulting practice.

“Luckily Don offers a Housing Welfare Certification Program, and I took it right away and learned a lot about reverse mortgages as a result,” Klein said. “And as I read on, Don has two books on reverse mortgages, one for financial advisors and one for consumers. So it really sparked my excitement with [the topic]… “

Shortly thereafter, Klein began writing articles for financial publications about the potential benefits that reverse mortgages could bring to some clients, including an article for Retirement Daily about how reverse mortgages became a stronger product after years of inherited program changes. Federal Housing Authority. RMD covered this article when it was first published.

“[That initial article] really was conceived as an introduction to reverse mortgages, ”explained Klein. “Writing this article only strengthened everything I learned about it and really excited me about it.”

Fears of peer financial planners about reverse mortgages

Although Klein himself has put the time and effort into researching reverse mortgages, he, like anyone else, admits that many other financial planning professionals remain with a number of concerns: some of them are practicalothers stemming from negative bias are about the potential relief that such a tool can provide clients in the right situation.

“In many cases it comes down to a lack of education,” he says. “This is the main thing about whether it’s a fixed income annuity or a reverse mortgage. I look at this [as stemming from the fact that advisors] they have so much time during the day and people like to focus on certain things. However, having said that many of the things we focus on are customer-centric, and so as customers come to your office and talk about it more and more now, financial advisors need to get it to speed up and broaden their horizons. “

The process of getting more financial planners into negotiating a reverse mortgage is also due to the fact that they can be compensated for advice related to products – an issue that does not affect Klein as much as his firm offers a more holistic solution for retirement. planning. than other advisors of a more general nature who may have high-profile clients.

“It’s difficult because there really isn’t a specific financial model for that,” he says. “As a financial advisor, I cannot get compensation from a reverse mortgage company for offering and selling a reverse mortgage to my client. I cannot receive any compensation. So the compensation that I get for a reverse mortgage is related to all of my one-stop service that I provide to clients, which includes a reverse mortgage as one of the things I do. ”

However, on an anecdotal level, he notes from fellow financial planners that those who also take the time to learn about how reverse mortgages can affect clients’ financial lives come out from a very different perspective than those who sticks to their misconceptions or concerns as the last word on this matter.

“From conversations with other financial advisors who are in the business of annuity or reverse mortgages, I have found that those who are educated on the subject and have implemented it in their practice have a completely different attitude to it than those who do not. “he says.” Many of the opinions I find again, whether annuity or reverse mortgages, come from misconceptions. Many of them are among consumers, but we, as financial advisors, have to be very careful. Our clients are looking for solutions, and if clients become homeowners when they turn 62, that is when you are eligible for the HECM program. [as a financial advisor] be aware of, [and potentially] to discuss it. “

Hear the full talk with Robert Klein about the latest RMD podcast coming soon.


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