Silver Divorce (where one or both parties are over age 55) is on the rise. 

Key issues of Silver Divorce are the division of assets, providing adequate retirement income for each (i.e., cash flow), and dividing the value of the primary residence for both to live as accustomed. 

Housing wealth, accessed by means of a reverse mortgage loan, can facilitate the division of assets in Silver Divorce and minimize cash outflow, leaving adequate cash available for other living expenses. It is important for financial advisors to understand how reverse mortgages can be used both in the division of the assets and in the structuring of retirement income to provide improvements in the divorcing parties’ standards of living.

In "Using Housing Wealth and Qualified Retirement Benefits to Facilitate Asset Division in Silver Divorce" by Barry Sacks, you will:

1. Learn how reverse mortgages can provide the means to enable the parties in a Silver Divorce to each have a home that is fully paid for, thus imposing no debt service cost in their cash outflow;
2. Learn how a reverse mortgage credit line can serve as a “buffer asset” to augment and sustain retirement income, especially when retirement savings invested in securities portfolios can incur the volatility inherent in such portfolios;
3. Better understand the way reverse mortgages work as a financial tool for several different uses and review some widely held misunderstandings. 

Your presenter is Barry Sacks, PhD., JD, Reverse Mortgage and Retirement Portfolio Longevity Expert .

Barry Sacks, Ph.D. earned his Ph.D. in semi-conductor physics from M.I.T., and then taught at U.C. Berkeley. He earned a J.D. Harvard Law School, and is a Certified Specialist, Taxation Law, from the California Board of Legal Specialization.  Barry spent 35 years as an ERISA attorney, specializing in qualified retirement plans. He then used his breadth of skills to discover a role for a reverse mortgage to help make a retirement portfolio last longer. Barry now has a law practice providing special services to tax professionals in the area of “Offers in Compromise” for retirees living on 401(k) accounts or other securities portfolios.

Barry and his brother, Stephen Sacks, Ph.D. shared their analysis of the reverse mortgage credit line in the February, 2012 Journal of Financial Planning. They revealed that if a reverse mortgage credit line was drawn on before drawing on investments when values had declined, a retiree’s residual net worth (portfolio plus home equity) after 30 years is about twice as likely to be greater than using home equity as a last resort. Evensky, Salter and Pfieffer then published their paper in the Journal of Financial Planning the following year on how to increase the sustainable withdrawal rate using the reverse mortgage line of credit.

Moderator: Betty Meredith, CFA, CFP®, CRC®, Int’l Retirement Resource Center

1 hr CFP®, CRC®, and other CE Credit Reporting

We will report your CFP® and/or CRC® credit (no additional reporting fee) checkout.  After purchase you will receive an email with a token. Please redeem token to take this course. You will receive another email explaining where to enter your CFP® and/or CRC® IDs  You are responsible for reporting all other certifications for CE credit. 

Overall Rating: 4.6 / 5

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