Reverse Mortgages have been often seen as a “last resort.” They were, essentially, used by cash poor, house rich retirees, looking for an extra boost of cash flow in order to pay off outstanding debts. With this reputation in mind, I’m sure there were many retirees who never considered a reverse mortgage. They were prepared for their retirement, had planned every stage of it, and the idea of an extra loan was not enticing to them. The recent changes to the program, however, will be just as important to future consumers as to the reverse mortgage industry. In a nut shell, future borrowers of the reverse mortgage will be financially savvy retirees who want to secure an extra “rainy day” fund or want to have a growing line of credit at the bank just in case. Well, it turns out, these changes could not have come at a better time. According to an article in Financial Planning, Brian Rezny, a financial planner with offices in Naples, Fl., said: “Baby boomers are the worst group of savers in the U.S. They lost a lot in 2008, and the horror stories were mounting, one after another […] They haven’t made up the losses, but they’ve been overspending and drawing down their principal, so they have much less to live on now than they did 5 years ago.”  In truth, the recession hit hard, but those most affected were those who failed to plan for their retirement, and, if they did, there were unlikely to make any lifestyle changes to accommodate the new financial situation they found themselves in. The less income you bring into the home, the less you should spend, right? It’s simple math. However, the downfall of the reverse mortgage was precisely that: retirees who found themselves in a hole, because of one reason or another, and, in their desperation, took the first lifesaver they could find, and dug themselves deeper. While I founded my business atop ethical practices, there isn’t a guarantee that everyone else did, especially during the recession, where every potential client was in a financial bind one way or another. It’s important to note though, that while a reverse mortgage can get you out of a financial crisis, there are still many lifestyle changes that need to be made before you find yourself right side up again. It’s not simply take out a reverse mortgage and hope it all goes away…especially if you find yourself dealing with the same financial problems over and over again. In fact, Renzy turns away potential clients who aren’t likely to make significant lifestyle changes during their retirement. Why? Well, they haven’t learned to save or manage their money, or realized that there isn’t as much to go around anymore. The changes coming to the program will, potentially, leave out plenty of consumers who would’ve otherwise qualified for the program, but, in doing so, they will also protect those consumers. Like everything else in life, these changes have their good and their bad, hopefully, the good far outweighs the bad, especially where the reverse mortgage is concerned. At PS Financial Services, we’re here to help you take the plunge into a comfortable retirement. Let us know if a reverse mortgage is right for you at (888) 845-6630 or via email at