Tom Selleck a straight shooter

Solano Real Estate Scene: Jim Porter

Article By: Jim Porter – September 1, 2023

Tom Selleck has a net worth of $50 million. He is getting paid by AAG to endorse their company and the idea of doing a reverse annuity mortgage.

Tom is currently earning $200,000 per episode for one of my favorite shows, “Blue Bloods,” so it is very unlikely he will lose his money or ever be financially wiped out because of a major family health event.

No, Tom doesn’t need to optimize his retirement plan with a HUD insured Home Equity Conversion Mortgage (HECM) line of credit because at his age the government-backed program would only give him a $400,000 line of credit to be used over the next 15 to 20 years.

I suppose there might be some tax benefits for him to do a conventional reverse mortgage on his 65-acre, $25 million ranch and take a tax-free $5 million loan out on his home and use it to buy a new jet or maybe even donate the $5 million to his favorite charity, but he will never need the product he is pitching.

People are generally skeptical, but the following financial wizards have run all the mathematical equations and now can prove without any doubt that establishing a HECM line of credit early in retirement and using it in conjunction with a balanced stock and bond portfolio makes wealth last longer.

Wade Pfau, author, Ph.D., CFA; Barry H. Sacks, Ph.D., JD, reverse and portfolio longevity speaker; and Texas Tech University financial planners and professors Shaun Pfeiffer, Ph. D; John Salter, Ph.D., CFP, AIFA; and Harold Evansky, CFP, AIF, are all saying that Tom Selleck and Jim Porter are straight shooters and it is now common practice for even the most conservative financial advisers to consider the reverse annuity mortgage early in a financial plan rather than as a last resort.

Please do your homework on the internet and call a local reverse mortgage expert or a local CFP financial advisor and plug in the numbers and see how the sequence of returns works when a HECM line of credit is used during those off years in the stock and bond markets.

Don’t forget, seniors, you can even use a reverse HECM line of credit to buy a house and then pay down the line of credit balance to zero after you sell your departing residence once you settle into your one-story forever home.

Jim Porter, NMLS No. 276412, is the branch manager of Solano Mortgage, NMLS No. 1515497, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Financial Protection and Innovation under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.