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	Use a Reverse Mortgage to Supplement Your Retirement Portfolio And greatly increase the chance of meeting your spending goals.

To download the Ibis 'white paper' that provides the background for these calculations, click JFP December 2013.

For a quick start, click

If you're comfortable, click


Client Info
	Dates	Month	Day	Year
	Borrower Birth Date				The youngest borrower must be at least 62 on the reverse mortgage loan's closing date.
	Co-Borrower Birth Date
	Reverse Mortgage Closing Date				Say 60 days from today

		Borrower	Co-Borrower
	Gender (for Mortality Engine)			1 = Female, 2 = Male
	Health (for Mortality Engine)			1 = Excellent, 2 = Average


	Zip Code		Just 5 digits, not zip + 4
	Home Value		Best estimate of what a current appraisal would be.

	The new reverse mortgage must be the only lien against the home. Liens being paid off that are attributable to home acquisition and/or home improvement debt can likely be carried forward when considering what portion of the reverse mortgage accrued interest may be deductible in the future. No longer making mortgage payments is a benefit to be considered in your retirement planning. An estimate of the deductible portion, for example, 50%, will allow calculation of the tax-equivalent monthly savings.
	Total Liens to be Paid Off		Lien against the home.
	Home Acquisition or Improvement		Dollar amount of Total to be carried forward for future calculations.
	Monthly Lien Payments		No more payments increases retirement spending.
	Current Liens % Deductible	%	Interest Portion of Current Mortgage Payments.
	How many months to go?		Benefits from retiring the lien will be carried that far into the future.

	Portfolio Value		Current Market Value
	Portfolio Cost Basis		Current Cost Basis in Dollars
	Portfolio Yield (%)	%	Dividends and Interest Taxed as Ordinary Income

	Marginal Tax Rate	%	Combined Federal and State Tax on Ordinary Income
	Capital Gains Tax Rate	%	Combined Federal and State Tax on Long-term Gains

Reverse Mortgage Inputs
	Desired Upfront Cash		Upfront Cash can be used as you wish, and the Creditline can be a reserve, but any money not allocated to monthly advances will lower the 'spending success' results of the model.
	Desired Creditline

HECM Product Info

		Choose a Loan Program			The HECM Choice requires a 60% upfront draw so may not be the best for long-term retirement spending.
		Lender's Origination Fee
		Adjusting Period

	Lender's Margin	%	Suggest three or more lenders; clients seek their own best deal.
	Monthly Service Fee		Seldom used now, but will likely return at $30 or $35 per month.

Portfolio Supplement
	Desired Portfolio Draw Rate	%	For example, 6.0% in the first year
	Planning Horizon		Retirement Spending Years likely 30 or more
	Interim Year to Inspect		15 years out is a good starting point

Monte Carlo Inputs

Annual Rates

Mean

Std. Dev.

Portfolio Returns

Enter arithmetic averages, not geometric returns, the software does all of the appropriate transformations.

Inflation (CPI)

Home Appreciation

1-month LIBOR

Running 2,000 Monte Carlo iterations thru thousands of calculations over forty years takes less than 5 seconds. You can request versions with fewer iterations to quickly compare alternatives, then make a Full Run on the final scenarios.

To see results from 2,000 iterations, click >>

Questions? Call Jerry Wagner at Ibis. 510-217-8775

Calculating...