Turned from a financial planner to a reverse professional who connects with referral partners

Financial Advisors


For Jason Parker, a reverse mortgage expert and author with a background in financial planning, getting into the reverse mortgage business was not an immediate decision. But as he pondered the product and its purpose, Mr. Parker discovered a potentially rewarding career rooted in the same thing he had done as a financial planner: helping clients reach their goals. I realized that I have his pass.

But Parker, a CFP-certified planner, also pointed out that many reverse mortgage professionals may not be sure how to form referral relationships with members of their profession. During a recent discussion on his RMD podcast, Mr. Reverse offered some thoughts on how his mortgage industry colleagues can best achieve these goals.

a consultative approach

One of the reasons Parker was drawn to the reverse mortgage business was that the reverse mortgage process was very consultative to the borrower.

“As any financial planner knows, the first thing to do is define the scope of the conversation,” he says. “Agreed [about] what we are talking about [and what] Check first, especially if you are consulting only for reverse mortgages. And from there, once the client and the reverse mortgage expert have clarified the scope of the conversation, we proceed to discovery first. We don’t rush into solutions. “

Financial planner turned reverse mortgage expert Jason Parker.
Jason Parker

Parker said selling the product’s benefits to customers is a key part of the equation. What he knew about the advisor mindset also inspired Parker in a recent commentary he wrote for RMD aimed at creating more connections between planners and reverse LO.

Still, reverse mortgage LOs seem to have misconceptions about the profession and have seen over the past 18 months the need to apply consulting powers to partnerships with planners, Parker said.

“In speaking with many reverse mortgage professionals and making national phone calls with loan officers and others, I have heard this constant theme. It’s like,” he says. “[I’m] Really trying to educate reverse mortgage professionals how fragmented the financial advice community is. Not all financial advisors are the same. They don’t all do the same thing, and it’s actually a big debate going on in the financial advice community. “

The root of the argument lies in the advisor’s title. A person claiming to be a financial advisor could be a life insurance salesman or a salary-based adviser, and they do it differently.

know what’s important

Parker said just being aware of these discussions within the advice community can itself be useful for reverse mortgage professionals.

“It is very important for anyone who wants to target financial planners, or who wants to work with financial planners in their day job, to really understand how it works,” he says. “[But] It is only important to understand what is important to all advisors for those who do not have the ability or the desire or even the aptitude to go deep into the weeds. “

One valuable conversation topic for planners comes in the form of long-term planning discussions, says Parker.

“It’s an important part of the plan because the conversation from accumulation to accumulation is very simple,” Parker explained. “We are talking about the savings rate, [actual] Projected rate of return and post-retirement portfolio risk. Then things get a little more complicated. [a client will] You have X assets and X income. How do we make this last longer? And what are the retirement-to-death risks? Essentially, how long do we need that money most of the time? ?”

Parker said long-term care remains an unknown risk for many financial advisor clients, and mitigating unknown risk is a key goal for advisors in managing their clients’ finances.

“It’s important for reverse mortgage professionals to understand at least that part of the conversation that advisors are having,” he said. “Advisors are usually happy to share their experiences, even if they don’t have that background themselves. Hearing very interesting stories from people related to long-term care conversations and solutions used in the market. I can.”

way to proceed

Asked whether the relationship between financial advisors and reverse mortgage professionals has become more normalized in recent years, Parker said advisors may still have relationships with each other “independently.” said that there is still some progress in these relationships, as . With a reverse mortgage expert.

Parker also hears people in the reverse mortgage industry complaining about connecting with advisors, but another thing they need to understand is that reverse mortgages want to connect for advisor services. It is likely that it will only apply to a very small percentage of people who are thinking about it. .

“From an advisor’s perspective, an advisor could be targeting anyone between the ages of 18 and 100,” Parker said. “In other words, the reverse mortgage solution [applies only to] They are talking to just a few people. Even beyond that, it’s the customers over the age of 62 who have sufficient assets or plan to continue living in their homes most of the time. It strips it down even more. “

Understanding this dynamic could help reverse mortgage professionals better understand the mindset of advisers when they struggle to make connections, he said.

“From an advisor’s perspective, it’s a very small part of the range of clients they’re talking about,” Parker explained. “And that’s one of the reasons they don’t really accept it.” [reverse mortgages] Seriously, you don’t really need to, it just doesn’t come up very often. “

There are many other professions looking to forge their own partnerships with advisors. Parker said it could be useful to know this situation for reverse mortgage professionals trying to decide how best to engage with their advisors.



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