When “We’re Probably Fine” Deserves a Second Look: How comfort can quietly reduce optionality.

I spend a lot of time teaching.

I host workshops for homeowners age 62+, present continuing education sessions for financial advisors, and partner with professionals who serve the senior community. One of the best parts of that work is hearing the questions people ask when they slow down enough to ask poignant questions.

At a CE session last week, an advisor posed what I think is a genuinely great question:

“If a client owns a $1,000,000 home free and clear, has ample assets projected to last through retirement, and only one heir… what problem is a reverse mortgage actually solving?”

On paper, that client looks financially complete.

No income gap. No obvious pressure. No crisis.

And that’s exactly why the question matters.

Because the role of a reverse mortgage loan in a well-built retirement plan isn’t always about fixing a visible problem. Often, it’s about addressing timing risk, behavioral risk, and uncertainty; the kinds of risks that don’t show up neatly in projections.

When “Everything Looks Fine”

Many people reach retirement feeling good about their situation:

• The house is paid off.

• Investments look strong. (The S&P 500 has grown from roughly 1,900 to over 6,800 from 2016-2025)

• Monthly income feels sufficient - travel, dining out, and discretionary spending don’t feel stressful.

In other words, there’s no obvious problem to solve.

That’s a great place to be. But it can also create a false sense of certainty.

Some of the biggest challenges in retirement don’t come from running out of money. They come from unexpected changes; from having to make decisions when the timing is bad and the pressure is real.

What Actually Creates Stress in Retirement

In practice, stress tends to show up when:

• Markets drop early in retirement. (The S&P 500 returned –4.38% in 2018 & –18.11% in 2022)

• A large, unplanned expense appears.

• Health needs change faster than expected (You’re Already Choosing a Long-Term Care Strategy. You Just May Not Know It.)

• You hesitate to spend - even when the numbers say you can.

These moments don’t announce themselves in advance.

They show up on a random Sunday morning or an ordinary Tuesday afternoon - often when decisions feel urgent and clarity feels harder to access.

Why Home Equity Often Gets Ignored

For many homeowners, the house represents:

• Their largest asset (The Federal Reserve estimates Americans hold roughly $35.8 trillion in home equity as of Q3 2025).

• Years, sometimes decades, of discipline and sacrifice

• Something they were taught not to touch.

And so, home equity gets mentally labeled as “later.”

The issue isn’t the house itself - and it isn’t that people are doing anything wrong.

The issue is waiting to understand the option until choices are limited, rather than learning what the home could provide while life is still calm.

What a Reverse Mortgage Is Really About

Reverse mortgage loans carry baggage - and some of that is earned. Early versions of the HECM (Home Equity Conversion Mortgage) weren’t nearly as consumer protective as the program is today.

But for many homeowners, this tool isn’t about:

• Being short on money.

• Taking a monthly payment.

• Making a last-resort decision.

More often, it’s about flexibility.

That flexibility can look like:

• Access to cash without selling investments at the wrong time (see 2018/2022).

• Time to make thoughtful decisions instead of rushed ones.

• A backup plan if/when life veers off script.

Whether it’s ever used or not, simply having the option can matter.

In my experience, a reverse mortgage loan creates choice and breathing room in ways few other tools do. That doesn’t make it better than everything else - but it makes it worth understanding.

This Is Not the Right Fit for Everyone

Annuities aren’t for everyone. Whole life insurance isn’t for everyone. And a reverse mortgage loan is no exception.

Age, health, housing plans, family goals, and overall financial structure all matter.

For some homeowners, it might never be the right move.

But learning about an option before a stressful event forces the conversation is very different from learning about it because a stressful event has already happened.

And as a side benefit, continued learning itself has lasting value as we age.

(Harvard Study: Tips to leverage neuroplasticity to maintain cognitive fitness as you age)

A Better Planning Question

Instead of asking: “Do we need this?”

A more helpful question is often: “What would be hardest to deal with if it happened at the wrong time?”

• A market downturn?

• A health change?

• A major expense?

• A significant life transition?

If any of those would feel disruptive, then flexibility deserves a place in the conversation.

Good retirement planning isn’t about predicting every problem.

It’s about knowing you have choices when life doesn’t go exactly as planned.

Or, as the famous quote goes: “You want to make God laugh? Tell her your plans.”

Sometimes, the best time to understand your options is when everything still looks fine.

If flexibility matters to you, a brief conversation may be worthwhile.

Schedule a 15-minute discussion here: https://calendly.com/ben_bina/15-minute-call