Helping Your Clients Help Their Parents: Why Financial Planners Should Consider Reverse Mortgages
As a financial planner, you wear many hats: strategist, coach, confidant—and sometimes, even mediator. Increasingly, your clients are not just planning for their own future, but for their aging parents as well. The “sandwich generation,” made up of adults supporting both children and elderly parents, faces unique financial pressures. One tool that can bring significant relief—but is often overlooked or misunderstood—is the reverse mortgage.
What Is a Reverse Mortgage?
A reverse mortgage is a loan available to homeowners aged 62 or older, allowing them to convert a portion of their home equity into tax-free cash, without having to sell the home, give up ownership, or take on a new monthly mortgage payment. The loan is repaid when the borrower sells the home, moves out, or passes away.
The Financial Planning Opportunity
If you’re advising clients who are concerned about their parents’ ability to:
Afford in-home care or medical expenses
Make home modifications for aging in place
Cover general monthly living expenses in retirement
Delay tapping into their own retirement savings to support mom or dad
…then introducing the concept of a reverse mortgage can be a game-changer.
A Real-Life Scenario
Imagine this: your 45-year-old client is helping her 78-year-old mother with monthly expenses, worried about assisted living costs, and contemplating dipping into her own 401(k). Meanwhile, her mother owns her home outright but is on a fixed income. A reverse mortgage could provide her mother with a monthly payout or line of credit, giving your client breathing room and preserving her retirement strategy.
Busting the Myths
Many people hesitate when they hear the words “reverse mortgage,” but much of the hesitation stems from outdated information. Today’s reverse mortgage—specifically the FHA-insured Home Equity Conversion Mortgage (HECM)—offers protections for both borrower and heirs. The home remains in the borrower’s name, and heirs have options when the loan becomes due, including paying off the balance or selling the home.
Why Financial Planners Should Care
Including reverse mortgages in your toolbox doesn’t mean you’re pushing debt—it means you’re offering a strategic solution tailored to a client’s entire family picture. It’s about preserving intergenerational wealth, easing caregiver burnout, and creating cash flow where it didn’t seem possible.
How to Start the Conversation
When reviewing your client’s financial responsibilities, ask:
Are you helping your parents financially?
Is their home paid off or mostly paid off?
Have you considered ways to make their home work for them?
If the answer is yes, it may be time to connect with a trusted reverse mortgage specialist who can help you and your clients explore the option in detail.
If you’d like to learn more about how reverse mortgages can fit into your clients’ holistic financial plans, I’m happy to be a resource. Together, we can help the next generation of retirees live with dignity, security, and independence—while protecting the future of their adult children, too.
Debbie Cooley Guy
Reverse Mortgage Specialist
debbie@debbiecooleymortgage.com
727-688-2851
NMLS #210817