Purple Balloon Monkey

I have talked about this on previous blogs, I feel I must continue to talk about it.

There are sharks out there, looking for you to give away your nest egg, often in return for something trivial, perhaps as trivial as a Purple Balloon Monkey.

The so called Reverse mortgage has gone mainstream – they are no longer sold as something for seniors who are house rich and cash poor and need money to make ends meet. Today, they’re marketed as a way for homeowners 62 or older to crack open a giant (yet imaginary) piggy bank.

The pitch is attractive, “Isn’t it time you started to enjoy retirement your way?” and "Why sit on thousands of dollars in unused equity when you can buy stuff?" or something along those lines.

The truth is that all reverse mortgages are costly and complicated. Clearly, they’re a godsend to some seniors who have no other way to pay their bills. But they can be an absolute nightmare for people who don’t understand how they work.

The reverse mortgage, sold on a promise of unlocked wealth and happiness, can often destroy a safe future for the elderly, money that perhaps should be used for residential care in your later years, squandered on consumer products, far too late in the game.

I would encourage anyone considering this method of entering back into the world of debt to do more research, talk to people who do not have a vested interest in stealing your house in the autumn of your life, and as usual, do not fall for a flawed pitch based on the shiny objects game.