The smartest thing in your retirement plan might be the house you already own.
A HECM reverse mortgage isn't just for accessing cash. Used strategically, it can protect your investment portfolio, let you delay Social Security, and ensure you never outlive your money.
What researchers are saying
"Opening a reverse mortgage line of credit early and letting it grow may significantly improve retirement outcomes — even for those who don't need the money today."
— Journal of Financial Planning / Wade Pfau, Ph.D., CFP
"Home equity is the largest asset on the balance sheet for most retirees. Ignoring it in retirement planning is a planning mistake."
— Barry Sacks, J.D., Ph.D.
Most people think of a reverse mortgage as a last resort. The research says it should be the first move.
For decades, the conventional wisdom was to tap home equity only when all other retirement assets were exhausted. But a growing body of academic research — from institutions like Texas Tech, the University of Illinois, and the American College of Financial Services — has flipped that script. Used proactively, a HECM line of credit opened early in retirement and left to grow can meaningfully improve long-term retirement outcomes.
Reverse Freedom Mortgage works with Utah homeowners 62 and older who want to understand this tool fully — not just as a way to get cash, but as a strategic component of a complete retirement income plan. Chad Peck has been guiding Utah families through this conversation since 2008, from West Jordan to Salt Lake City to Provo and throughout the Wasatch Front.
Six questions to ask yourself before your next financial review
A HECM as a financial planning tool is most valuable when used intentionally — before you need it. If you can answer yes to two or more of these questions, it's worth a conversation.
Schedule a free conversation- 01 Is your current income covering your expenses — and will it continue to do so as costs rise?
- 02 Do you have enough set aside to handle spending shocks — a roof, a car, unexpected medical bills?
- 03 Are you concerned about outliving your savings — especially if you live into your 80s or 90s?
- 04 Would you benefit from not having to sell investments during a market downturn to cover living expenses?
- 05 Would delaying Social Security — and claiming a higher lifetime benefit — improve your long-term plan?
- 06 Do you anticipate housing or healthcare needs changing in the next 5–10 years?
Four ways a HECM improves a retirement plan
These are the four strategies Utah financial advisors and retirees use most often — each backed by peer-reviewed research.
Sequence-of-returns protection
When markets drop, selling investments to cover living expenses locks in losses. A HECM line of credit gives you an alternative source of income — preserving your portfolio until markets recover.
Let your portfolio recover before you withdraw from it
Sequence-of-returns risk — the danger that a bear market early in retirement permanently damages your portfolio — is one of the biggest threats to a long retirement. A HECM line of credit acts as a buffer asset.
During a market downturn, you pause portfolio withdrawals and draw living expenses from your HECM line of credit instead. When markets recover, you resume portfolio withdrawals and repay the line — or simply leave the balance to grow.
- Avoids selling investments at a loss
- Gives portfolio time to recover
- Line of credit cannot be cancelled during downturns
Social Security delay bridge
Claiming Social Security early locks in a permanently reduced benefit. HECM monthly advances can replace that income for 2–8 years — allowing you to wait for the maximum benefit at age 70.
Bridge the gap to your maximum Social Security benefit
Every year you delay Social Security past full retirement age, your monthly benefit grows by approximately 8%. For a couple, that difference over a 25-year retirement can be substantial — often more than $100,000 in additional lifetime income.
For Utah homeowners who want to delay but need income in the interim, HECM monthly advances serve as a bridge — replacing what Social Security would have paid while you wait for the higher benefit to kick in at age 70.
- Replaces early Social Security income
- Permanently increases lifetime benefit
- Especially powerful for couples
The growing standby line of credit
Open a HECM line of credit now, draw nothing, and let it grow. The unused balance compounds at the loan's interest rate — so in 10 years, you'll have substantially more available than you do today.
The earlier you open it, the more you'll have when you need it
Most people wait until they're in financial distress before considering a reverse mortgage. That's backwards. A HECM line of credit opened at 62 or 65 — before you need it — grows over time at the loan's interest rate, giving you access to significantly more funds at 75 or 80.
Think of it as a financial reserve that appreciates. Unlike cash savings earning low interest, a HECM line of credit growth is tied to interest rates — and cannot be cancelled or reduced by the lender as long as you meet loan obligations.
- Available credit grows automatically
- Cannot be frozen or cancelled by lender
- No monthly payment required to maintain it
Longevity and outliving your money
The greatest financial risk in retirement isn't a market crash — it's living longer than your money lasts. A HECM tenure payment continues as long as you live in your home, making it the only retirement income source tied to your life and your home simultaneously.
A retirement income source you cannot outlive
HECM tenure payments — monthly advances that continue for as long as you live in your home — are the only retirement income tool that combines your home, your equity, and your longevity into a single guaranteed stream.
For Utah homeowners who are concerned about outliving their savings, especially those in their 80s and 90s, the tenure payment can supplement Social Security and provide a floor of income that never runs out as long as you stay in your home.
- Payments continue regardless of how long you live
- Provides a guaranteed income floor
- Reduces pressure on investment portfolio
This strategy is best suited for three types of Utah homeowners
Used as a financial planning tool, a HECM works best for people who are thinking proactively — not reactively.
The planner with a financial advisor
You work with a CFP or financial planner and want to understand how home equity fits into your complete retirement income plan — particularly for portfolio coordination and sequence-of-returns protection.
The early-retirement planner
You're 62–70, in good health, and thinking 20–30 years ahead. You want to open a HECM line of credit now, let it grow, and keep it as a reserve for when you may actually need it.
The Social Security delayer
You know that waiting until 70 for Social Security will significantly increase your lifetime benefit — but you need income in the meantime. HECM monthly advances can serve as a bridge.
What Utah retirees ask about using a HECM as a planning tool
How can a HECM reverse mortgage protect my investment portfolio?
A HECM line of credit acts as a buffer asset during market downturns. Instead of selling investments at a loss to cover living expenses, you draw from your home equity line. Your portfolio stays intact and recovers — then you resume withdrawals. Research from Barry Sacks and others has shown this can meaningfully extend portfolio longevity in retirement.
Can I use a reverse mortgage to delay Social Security?
Yes — and this is one of the most powerful strategies available to Utah retirees. HECM monthly advances replace the Social Security income you'd otherwise claim early. Every year of delay past full retirement age increases your benefit by approximately 8%. For a couple, delaying both spouses' benefits can increase lifetime income by hundreds of thousands of dollars.
How does the HECM line of credit grow over time?
The unused portion of a HECM line of credit grows at the same rate as the loan's interest rate — compounding automatically. This means a line of credit opened at 65 will have significantly more available at 75, even if you never draw from it. This growth is guaranteed and cannot be cancelled by the lender as long as you meet loan obligations (property taxes, insurance, maintenance).
Is a HECM as a financial tool a recognized strategy?
Yes. Peer-reviewed research from institutions including the University of Illinois, Texas Tech, and the American College of Financial Services has validated the HECM line of credit as a legitimate retirement planning tool. Many certified financial planners (CFPs) and fee-only advisors now incorporate it into client plans. Reverse Freedom Mortgage works with Utah financial advisors who want to understand this tool for their clients.
What are the risks of using a HECM this way?
The main considerations: interest accrues on any amounts drawn, reducing home equity over time; you must stay current on property taxes, insurance, and maintenance; and if you permanently leave the home, the loan becomes due. A HECM used as a financial planning tool is most effective when opened early and used strategically — not as a last resort. Chad and the Reverse Freedom team walk every Utah client through a complete, honest analysis before anyone commits to anything.
Do I have to draw from the line of credit immediately?
No. One of the most powerful aspects of the HECM line of credit strategy is opening it now and drawing nothing — simply letting the available balance grow. There is no required monthly payment and no obligation to draw. You can leave it entirely untouched as a reserve and only access it if and when you need it.
Utah financial advisors: we work with you, not around you.
We're happy to present alongside your advisor, answer technical questions, and help your clients understand how a HECM fits their plan. Lunch & Learn sessions available.
Let's look at how this fits your retirement plan.
A 30-minute conversation with Chad is all it takes to understand whether a HECM makes sense for your specific situation — your home, your equity, your goals. No sales pressure. Just honest information.
Utah's reverse mortgage specialists since 2008. Helping Utah retirees live the retirement they imagined.
HUD/FHA Notice: This material is not from HUD or FHA and has not been approved by HUD or a government agency.
Loan Repayment: A reverse mortgage is a loan that must be repaid. Borrowers must continue to pay property taxes, homeowners insurance, and maintain the property as a primary residence. Failure to do so may result in foreclosure.
Reverse Freedom Mortgage is licensed in the State of Utah. NMLS #1382816, Utah DRE License #9441193.
© Reverse Freedom Mortgage. All rights reserved.