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Pfau: How to Manage Sequence of Returns Risk With Reverse Mortgages

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Using home equity conversion mortgages — commonly known as reverse mortgages — strategically can help improve clients’ retirement sustainability and build a larger legacy to leave their heirs, according to Wade Pfau, professor of retirement income at The American College and director of retirement research at McLean Asset Management and inStream Solutions.

Conventional wisdom on reverse mortgages or HECMs is that they are irresponsible, expensive or a last resort, and has made them unattractive to many retirees and their advisors.