Choosing the credit line version of the HECM early in retirement, then using funds in some years but not in others to supplement retirement portfolio income, could give retirees the best odds of having a comfortable cash flow during retirement while ensuring they don't run out of money before they die, according to
retirement researchers Barry Sacks and Stephen Sacks.
The major difference between McClung and most
other retirement researchers is that McClung has subjected these formulas to more tests than a talking ape.
(The reality is that many retirees do naturally vary their income anyway outside of the confines of
the retirement researcher's lab.)
Yet
some retirement researchers suggest even 4 % may be too high if you want to be certain your portfolio will live longer than you do.
Using Wade Pau's reverse mortgage calculator on
his retirement researcher website, I found that you would face initial costs of $ 5,628 but you would be eligible for a credit line of $ 320,288 or a life tenure monthly income of $ 2,140 a month.