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The Retirement Trainer

Aug 18, 2020

As you transition into retirement, you’re likely looking to understand how to reduce mortgage debt and downsize without burning through your savings. There are lots of ways to do it, and lots of important questions to ask along the way.

This is more true right now than ever before. With housing markets as hot as they are, it’s become very easy to downsize and end up spending more each month.

It’s critical that you do your homework, meet with your advisor and CPA, and determine exactly which tools are best suited to your situation. Today, we walk through some of the most common downsizing tools and strategies, with a focus on the HECM loan (also known as the reverse mortgage). You’ll discover how these loans work, why they aren’t a one-size-fits-all solution, and how they can provide you, under the right circumstances, with a sustainable source of money in retirement.

In this podcast interview, you’ll learn:

  • Why it’s so easy to lose money by downsizing.
  • Why money received through a reverse mortgage is not taxable, does not affect your Social Security, and can’t impact means-testing for medicare.
  • What happens to a reverse mortgaged home - and what beneficiaries will receive - when you pass away.
  • How adult children living with you can impact your amount of available equity.
  • Why the HECM loan is both key to a comfortable retirement for so many - and a bad fit for many people who ask about it.

Show Notes

To get access to today's show notes, including links to all the resources mentioned, visit

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