Financial adviser offers odd reverse mortgage advice

Investing lump sum likely a waste of time, money

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

DEAR BOB: I began getting Social Security last February. Then in May this year I lost my job. A financial adviser suggests I take a reverse mortgage "lump sum" and invest it to supplement my Social Security income. I have no other income and no heirs. My home is worth about $400,000 with a $77, 000 mortgage at 4.25 percent interest, which adjusts by 2 percent next year. I love my home and want to stay here as long as possible. Do you think a reverse mortgage will work for me? --Loral C. DEAR LORAL: Yes. But I am very worried that so-called financial adviser might have suggested you take a reverse mortgage lump sum so he can sell you an annuity or other investment to earn himself a large sales commission. Purchase Bob Bruss reports online. If you want to receive monthly lifetime income from a reverse mortgage to supplement your Social Security income, you can elect that choice direct from the reverse mortgage lender. You don't need that financial adviser to help you. However, you will n...