No. of Recommendations: 1
I ran the numbers on the site using $1M as the value of the home and pretending my wife and I were born in 1940 (65 y/o).

If the numbers are true, a reverse mortgage is a terrible idea. Let's do a silly example to show how bad it really is.

I don't know what the tax rate would be if you sold that $1M home but let's assume a very high 40%.

You sell the home, pay the government $400K and put the remaining $600K in a suitcase under your bed.

Let's also assume a 4% annual inflation rate on your "under the bed cash" over the next 30 years.

Over the next 360 months, you and DW can draw an inflation-adjusted monthly withdrawal of $860.

Summary: The reverse mortgages on the AARP website are a bad deal.

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