Foguth Financial Group President Michael Foguth contributed to a Time article that spoke to hidden retirement assets.
Retirees’ Biggest Asset May Be Hiding in Plain Sight
By: Dan Kadlec
As Quoted by Time: “Michael Foguth, a planner in Howell, Mich., says the loan balance still grows at a compound rate–interest on interest. “I continue to view it as a loan of last resort,” he says.”
Excerpt: If you are near retirement age and watch even a little TV, you’ve almost certainly seen Henry Winkler or the late Fred Thompson promote reverse mortgages. You may also have heard watchdog groups blast both actors for hawking a complicated product to seniors in need of cash. What you likely haven’t heard is that the reverse mortgage has gotten a substantial makeover since the financial crisis.
Experts now argue that this type of loan can be safe and even wise– as well as a key source of income that homeowners short on savings and planning to stay put should set up the minute they become eligible at age 62. “The strategic use of home equity in a retirement-income plan is the next hot topic,” says Wade Pfau, professor of retirement income at the American College of Financial Services and retirement-research director for an asset-management firm.
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