Scenario 1
Retiree does not use a HECM reverse mortgage

Age IRA Distribution HECM Distribution IRA Balance Home Value HECM Loan Balance Net Worth: IRA + Home – Loan
$1,000,000 $200,000 $0 $1,200,000
65 $40,388 $0 $933,846 $201,616 $0 $1,135,463
66 $41,741 $0 $1,003,574 $204,875 $0 $1,208,449
67 $43,010 $0 $1,035,488 $215,224 $0 $1,250,712
68 $45,040 $0 $944,689 $231,270 $0 $1,175,959
69 $47,792 $0 $990,489 $248,938 $0 $1,239,427
70 $50,416 $0 $1,048,322 $259,917 $0 $1,308,240
71 $52,110 $0 $1,116,456 $265,592 $0 $1,382,047
72 $53,887 $0 $1,009,175 $276,039 $0 $1,285,214
73 $58,629 $0 $851,784 $307,354 $0 $1,159,138
74 $65,781 $0 $962,972 $324,844 $0 $1,287,816
75 $70,393 $0 $1,056,412 $352,154 $0 $1,408,566
76 $73,778 $0 $954,285 $403,688 $0 $1,357,972
77 $78,773 $0 $919,506 $467,865 $0 $1,387,370
78 $85,887 $0 $927,526 $525,073 $0 $1,452,599
79 $97,318 $0 $981,016 $565,602 $0 $1,546,618
80 $109,385 $0 $891,416 $595,952 $0 $1,487,368
81 $119,165 $0 $967,284 $602,121 $0 $1,569,405
82 $123,776 $0 $969,696 $627,789 $0 $1,597,485
83 $128,480 $0 $926,558 $660,151 $0 $1,586,709
84 $133,555 $0 $1,001,127 $710,556 $0 $1,711,684
85 $138,590 $0 $1,007,487 $776,359 $0 $1,783,846
86 $140,156 $0 $902,588 $838,339 $0 $1,740,928
87 $146,337 $0 $842,880 $897,684 $0 $1,740,564
88 $152,805 $0 $844,584 $928,142 $0 $1,772,726
89 $159,910 $0 $707,131 $919,989 $0 $1,627,120
90 $169,681 $0 $661,091 $926,191 $0 $1,587,282
91 $174,873 $0 $522,344 $931,510 $0 $1,453,855
92 $179,944 $0 $378,746 $955,676 $0 $1,334,422
93 $184,893 $0 $190,141 $976,881 $0 $1,167,022
94 $189,829 $0 $396 $992,270 $0 $992,666

 

Scenario 2
Retiree uses a HECM reverse mortgage to protect investment portfolio

Age IRA Distribution HECM Distribution IRA Balance Home Value HECM Loan Balance (Amount Due) Net Worth: IRA + Home – Loan
$1,000,000 $200,000 $0 $1,200,000
65 $40,388 $0 $933,846 $201,616 $0 $1,135,463
66 $41,741 $0 $1,003,574 $204,875 $0 $1,208,449
67 $43,010 $0 $1,035,488 $215,224 $0 $1,250,712
68 $45,040 $0 $944,689 $231,270 $0 $1,175,959
69 $47,792 $0 $990,489 $248,938 $0 $1,239,427
70 $50,416 $0 $1,048,322 $259,917 $0 $1,308,240
71 $52,110 $0 $1,116,456 $265,592 $0 $1,382,047
72 $53,887 $0 $1,009,175 $276,039 $0 $1,285,214
73 $58,629 $0 $851,784 $307,354 $0 $1,159,138
74 $0 $65,030 $1,043,564 $324,844 $71,852 $1,296,556
75 $70,393 $0 $1,151,797 $352,154 $78,283 $1,425,668
76 $73,778 $0 $1,046,917 $403,688 $84,960 $1,365,645
77 $78,773 $0 $1,016,793 $467,865 $94,332 $1,390,326
78 $85,887 $0 $1,035,773 $525,073 $107,661 $1,453,186
79 $97,318 $0 $1,108,926 $565,602 $123,401 $1,551,127
80 $109,385 $0 $1,022,230 $595,952 $149,167 $1,469,015
81 $119,165 $0 $1,131,135 $602,121 $175,793 $1,557,463
82 $123,776 $0 $1,158,059 $627,789 $197,978 $1,587,870
83 $128,480 $0 $1,134,030 $660,151 $226,408 $1,567,774
84 $133,555 $0 $1,263,051 $710,556 $252,671 $1,720,936
85 $138,590 $0 $1,313,427 $776,359 $279,353 $1,810,432
86 $140,156 $0 $1,220,964 $838,339 $305,891 $1,753,412
87 $146,337 $0 $1,197,726 $897,684 $339,172 $1,756,238
88 $152,805 $0 $1,278,880 $928,142 $381,705 $1,825,317
89 $159,910 $0 $1,155,672 $919,989 $426,288 $1,649,373
90 $169,681 $0 $1,212,819 $926,191 $469,641 $1,669,369
91 $174,873 $0 $1,115,065 $931,510 $503,268 $1,543,308
92 $179,944 $0 $1,034,384 $955,676 $536,936 $1,453,124
93 $184,893 $0 $833,224 $976,881 $577,743 $1,232,361
94 $189,829 $0 $817,851 $992,270 $633,784 $1,176,336