The "Grand Slam" Strategy: How to Fund a Social Security Delay for Half the Cost

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We all know the math on delaying Social Security until 70. That 8% guaranteed return is the best 'bond' your client will ever own. But for most clients, the 'bridge' to get there is expensive. They either drain their AUM or take a massive tax hit on an IRA withdrawal.

But what if you could fund that entire five-year gap for half the price you originally calculated?"

Take your typical 65-year-old client. They need $8,000 a month to live. Between their pension and other small inflows, they’ve got $2,000 covered. That leaves a $6,000 monthly gap you need to fill so they can let that Social Security check grow.

Usually, you’d look at a home equity line of credit to bridge that $6,000. It’s tax-free, it protects their portfolio, and it’s a smart move. But we can do better."

The "Grand Slam" Reveal: "Here’s the move: Most of these clients are still carrying a mortgage—maybe $3,000 a month in principal and interest.

When we set up the HECM, the very first thing it does is pay off that existing mortgage. Suddenly, the client’s monthly 'need' drops. They don't need $8,000 a month anymore; they only need $5,000 because that $3,000 mortgage payment just vanished from their life.

Now, look at the math on the 'bridge' you have to build:

• Their need is $5,000.

• Their pension is $2,000.

• The new gap is only $3,000."

The Strategic Bottom Line: "You just cut the cost of the strategy in half.

The reverse mortgage isn’t just providing the cash to delay Social Security; it’s eliminating the need for half that cash by fixing the cash flow at the source. You’re still avoiding that 27% tax hit on the IRA, you’re still protecting the AUM, but you’re doing it with 50% less leverage.

That’s how you turn a 'smart trade' into a total home run for the plan. It’s not about the loan; it’s about the math of the gap."