Reverse mortgages worth a look, if approached with caution

Reuters - Even as regulators are firing shots at reverse mortgages for what they consider deceptive advertising, financial planners are taking a new look at these loans as a way to avoid selling stocks.

"We find this risk management strategy improves portfolio survival rates by a significant amount," researchers John Salter, Shaun Pfeiffer and Harold Evensky wrote in a paper published in the Journal of Financial Planning. "The improvement in survival rates is attributable to the mitigation of the volatility drain - the risk of having to sell investments when depreciated."

Evensky is a respected fee-only financial planner in Coral Gables, Florida, while Pfeiffer is an associate professor at Edinboro University in Pennsylvania. Salter is an assistant professor at Texas Tech University and a wealth manager at Evensky's firm.

Read the column here.