SWR and reverse mtg LOC

[Onward]

Results pertaining to the low interest rate and current lending environment indicate that a 5.0 percent SWR is attainable for the [standby reverse mortgage] strategy when home equity is at least 50 percent of the [investment portfolio] at retirement. The SWR for the [standby reverse mortgage] strategy is estimated to be as high as 6.75 percent for retirees in the low interest rate environment where home equity is equal to the [investment portfolio] at the beginning of retirement.

Increasing the Sustainable Withdrawal Rate Using the Standby Reverse Morgage

 

[audreyh1]

Home equity is 50% of the investment portfolio? - ouch! Something seems out of balance there. Either downsize the home, or save more before retiring unless pension/SS income is already taking care of most of the needs.