FPA of San Francisco Marin Brown Bag Lunch Meeting Details
Note:  FPA SF Brown Bag Lunch Events require FPA membership to attend. FPA members from other chapters are welcome to attend as well as guests of FPA members.
Please bring your own as lunch will not be provided.  Seating is limited.

Thursday, January 26, 2017
Larkspur Landing
2nd Floor, Tiburon Conference Room (In front of Suite 203)
100 Larkspur Landing Circle, Larkspur, CA

Topic:
Enhancing Retirement Income by Coordinating Securities with Home Equity

Speaker:
Barry H. Sacks, J.D., Ph.D.

Thank You to Our Meeting Sponsor:

Mary-Alice Cardenas, MPH
Reverse Mortgage Specialist
mcardenas@reversefunding.com
(415) 233-1007

                       

Program Description:
This talk will show the extension of previous research to a much wider group of retirees and soon-to-be retirees.  More specifically, the previous research (which will be reviewed in the talk) showed that certain mass-affluent retirees could obtain substantially enhanced cash-flow survival probability by coordinating their distributions from their 401(k) accounts or rollover IRAs with a reverse mortgage credit line.  For those retirees, the coordinated strategies (yes, there are 2 of them) enable the well-known 4% rule to increase to 5% or even 5-1/2 %.  (The percentage refers to the initial distribution as a percentage of the initial portfolio value.)

The new research shows that, in many cases, the old 4% rule can increase to 9% or even 10%.  These cases include many additional mass-affluent retirees and also those millions of workers with less wealth than the mass-affluent who have retired, or will retire, with 401(k) accounts or rollover IRAs with values in the range of $175,000 to $225,000 and much greater home values (e.g., in the range of $300,000 to $400,000). 
Some resulting professional opportunities and some public policy issues will be briefly discussed.

Speaker's Bio:
Barry Sacks, a graduate of Harvard Law School, has practiced primarily in the area of retirement plan law for 42 years.  For more than 10 years, he has been listed in “Best Lawyers in America.”
Barry also holds a Ph.D. in theoretical physics from MIT. His doctoral dissertation involved extensive mathematical modeling, which carried over to his pioneering research paper modeling the use of reverse mortgage credit lines to offset the adverse sequence of investment returns in retirement accounts.  This coordinated strategy enables significant enhancement of the sustained cash flow throughout long retirements.

*This topic has been approved by the CFP Board for 1.0 hour of CE credit.

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