Boost Retirement Income with Home Equity
Few advisors have developed a standard method for including housing wealth in retirement income planning. In a groundbreaking study published in the October, 2017 Journal of Financial Planning, Barry Sacks, PhD, JD, Peter Neuwirth, FSA and Stephen Sacks, PhD, describe an innovative “Rule of 30,” which provides that method. The Rule of 30 demonstrates how coordinating housing wealth with the retiree’s securities portfolio (e.g., 401(k) account or rollover IRA) can enhance cash flow survival throughout a long retirement. The
coordinated strategy is based on drawing from a reverse mortgage credit line, rather than from the portfolio, in periods following periods of negative or weak investment returns. Using the Rule of 30, the planner can calculate significantly higher “safe” withdrawal rates. This new rule applies across a broad range of retiree cohorts. Mastering the Rule of 30 will provide clarity and confidence when guiding clients toward an optimal cash withdrawal strategy.
Who Should Attend
Advisors across all sectors of financial services, including: Financial Planners, Investment Advisors, Insurance Producers, Attorneys, Estate Planners, CPAs, and Retirement Counselors.
CE Credit Status
Barry H. Sacks, PhD, JD is a tax attorney specializing in pension law. He is a 1973 graduate of Harvard Law School. Since 1974, with the enactment of ERISA (the pension reform law), he has practiced almost exclusively in the area of retirement plan law. For the past ten years, he has been listed in the peer-selected “Best Lawyers in America”. In 2015, Barry was designated as Best Lawyers’ “Lawyer of the Year” in the field of retirement plan law for the San Francisco Bay area. In addition, he holds a Ph.D. in theoretical physics from MIT, where he completed a doctoral dissertation that involved substantial mathematical modeling. He published the pioneering research paper modeling the use of reverse mortgage credit lines to mitigate the effects of adverse sequences of investment returns in retirement accounts (Journal of Financial Planning, February, 2012). The retirement income strategy described in the Journal of Financial Planning article has been granted 2 patents. He published a sequel to this paper in the October, 2017 issue of the Journal of Financial Planning, expanding the range of application of the strategy. In 2016, he published an article in the Journal of Taxation (“Recovering a Lost Deduction”) on the income tax deduction for interest accrued on reverse mortgages. While developing his model for the use of reverse mortgages in retirement income planning, Barry became aware of the particular needs of retirees (or soon-to-be retirees) who are in the process of divorce. As a result, Barry has worked with his co-authors on a paper that addresses these retirees’ needs. This paper was published in the Q4-2017 issue of the Journal of the Institute for Divorce Financial Analysis.
RSVP: Jim Heitzig, Chapter Executive
11:30 am - 12:00 pm: Registration & Networking
12:00 pm: Buffet Lunch
12:30 pm: Program
1:30 pm: Close
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