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Southern Capital Services TV Interview
What is an Independent Registered Investment Advisor (RIA)?
An RIA is in the business of giving advice.
An independent RIA is not owned by another company or institution.
An RIA has a Fiduciary Responsibility to their clients. They are legally required to put the client’s interest first. This is a higher standard that what is required of brokerage firms, which is the suitability of an investment for an individual client.
An RIA is typically compensated by fees for advice, rather than commissions on buying & selling.
An RIA is regulated by the Securities and Exchange Commission (SEC) or the state in which they operate.
Introduced in 1989, reverse mortgages were designed for homeowners nearing retirement age. The premise behind a reverse mortgage is to allow those aged 62 or older, with at least 50% equity in their home, to tap that equity in the form of a payment that will be made to them monthly. The complete opposite of a standard mortgage, reverse mortgages use the home’s equity to pay borrowers a set amount each month, with owners no longer required to pay their current monthly mortgage, if they have one. Income from a reverse mortgage is typically tax-free, and payments will continue as long as the borrower remains in the home, or the home’s equity is used. Borrowers are not required to pay the money back as long as they remain in the home, but the loan becomes due and payable if the borrower moves or sells the home. If the borrower dies, the money is typically paid back by the estate through the sale of the home.
Though the premise is simple, the reverse mortgage process can be complicated, which is why those interested need to work with an experienced professional that understands the industry and the process.