In her recent newsletter, Janine Rogan, CPA of The Wealth Building Academy, had a great point about inheritances arriving 30 years too late.
She mentions that she plans to pass wealth to her kid at major milestones in his life rather than in her Will. I'm seeing this happen more and more as the Baby Boomer Generation ages. They want to see their child enjoying the wealth now. After all, providing your kid with help for a down payment on a home is much more rewarding than leaving them the money during their retirement years.
She says, "76% of parents intend to help, but many are paralyzed by:
- Financial Insecurity: The fear of outliving their money (even when the math says they won't).
- Spending Patterns: Forgetting that spending usually drops significantly after age 75.
- Control: The emotional attachment to the number in the bank."
Another form of wealth is the equity in their home. Most of that generation bought homes when prices were drastically lower than today's prices (yes, Dad, interest rates were much higher, I know) and have been mortgage-free for decades. A reverse mortgage could be a great way to access that equity without impacting financial security or touching that number in the bank. There are no payments, and there is a no-negative equity guarantee. With 41% of first-time homebuyers receiving a gift from family as part of their down payment in 2025, early transfer of generational wealth is a huge help for young people looking to buy a home.
While reverse mortgages are not the right fit for everyone, it might be worth starting a conversation. There are a lot of myths and misconceptions out there.