Nobel Laureate: "The Promise of Reverse Mortgages"

Nobel Laureate: “The Promise of Reverse Mortgages”

by Shannon Hicks
| 3 Comments
| November 16, 2015

[vimeo id=”145681587″ width=”625″ height=”352″]

Nobel Laureate Economist Robert C. Merton Challenges Target Date Funds and Asserts “The Promise of Reverse Mortgages”

Nobel Laureates are a rare breed. It’s a very exclusive collection of experts, humanitarians and scientists. Robert Merton is an American economist and professor of economics at M.I.T. who won the Nobel Prize in 1997. Surprisingly he espouses the promise of reverse mortgages in his November commentary in Advisor Perspectives.

First Merton begins by exposing the perils of Target Date Funds, a typical investment strategy utilized in retirement planning. What is a Target Date Fund? It is an investment strategy that adjusts one’s retirement portfolio mix to become more conservative as the investor nears their retirement age. Basically an adjustment to the portfolio’s risk profile over time.

Merton states that technology underlies the promise of reverse mortgages, a financial innovations as he calls it, that can solve problems across the globe. Another challenge is consumption coupled with longevity…

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.

Editor in Chief: HECMWorld.com

As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.

Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.

Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

3 Comments

Kent Kopen
November 16, 2015 at 9:06 am
Great share Shannon. We really appreciate all you do to educate others.
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- Shannon HicksModerator
  November 19, 2015 at 12:22 pm
  Kent, Thank you kindly. Encouraging news is pleasant to share indeed.
  
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James E. Veale, CPA, MBT
November 16, 2015 at 12:14 pm
We are beginning to see departures in the standard views about reverse mortgages. Yet this process promises to be just as hard and arduous as the start of the breakthrough. Yes, our endorsements will increase as more of the economic and financial intelligentsia begin realizing the need and value of a cash flow product in increasing and extending the cash inflow generated in the decumulation phase of the financial life cycle yet the change will not be overnight.

Although there are substantial crossovers in discussing cash flow, income, expense, assets, and liabilities with seniors, each of these financial categories are also separate subjects which need to be explored by retirees so as to preserve as much cash as possible for use throughout what are becoming ever longer retirements.
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