Suggestion to add feature for Reverse Mortgage (RV aka Home Equity Conversion Mortgage, HECM) as many people will reach “End of Plan” with significant home equity. The Line of Credit (LOC) payment option for a Reverse Mortgage is the most interesting to me (there are 3 basic types of RMs).

You can only apply for a HECM when the youngest spouse is at least 62 years old. There are several options on how to take the proceeds of the loan. The one that looks most appealing is the Line of Credit option. You can establish a line of credit that grows by a percentage every year along with the loan balance. This percentage is called the effective rate and is the sum of 0.50% fixed mortgage insurance premium, a fixed lender’s margin, and a variable percentage established by the one-month LIBOR rate.

This line of credit grows and can be tapped when early market returns are unfavorable to alleviate Sequence of Returns Risk or it can be left to grow and used only if the portfolio is exhausted.

Wade Pfau did Monte Carlo simulations and found that establishing the LOC as early as possible and leaving it untouched unless the paper assets were exhausted yielded the most increase in success %, while using the LOC to offset early years with unfavorable stock returns yielded the greatest increase in final balance.

I can share the relevant papers from the Journal of Financial Planning, I would recommend starting with Pfau 2016 “Understanding the LOC Growth for a RM” and Pfau 2016 “Incorporating Home Equity into a Retirement Income Strategy.”