Richard Woychowski writes: Regarding Jim Connolly’s February 2009 feature article in Income Planning, The jury is still split on reverse mortgages for income , I find it quite ironic that most financial advisors focus on the cost of reverse mortgages.
It is ironic especially, since all of those “no load” mutual funds in which they have their clients have lost so much value in the last 18 months.
They would rather preach the “buy, hope and pray” philosophy of Modern Portfolio Theory as their clients’ retirement vanishes out of sight.
Nobody knows what is going to happen in the future and speculation is a fool’s game.
Let’s wait for the housing market to rebound? Again, what don’t these advisors understand? Home prices sky rocketed because the supply of money to buy those homes was cheap and easy. Any idiot with a pulse got a loan.
The cheap money is still here, but it is no longer easy. The banks learned their lesson the hard way and we will never see money that easy again. Which means fewer buyers resulting in declining home values. Home values are not going to “bounce” off the bottom. Hopefully, at some point they will hit bottom and the only sound you will hear is a “thud.”