Unlocking Home Equity: The Overlooked Asset in Retirement Planning



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~ Diane

As a financial advisor, you work hard to help clients retire with confidence. But one of the largest—and often idle—assets in their portfolios is frequently left out of the conversation: home equity. For most seniors, it represents their single biggest source of wealth, yet it’s commonly viewed as untouchable.


In reality, home equity can be a powerful tool to strengthen and protect a client’s retirement plan. A Home Equity Conversion Mortgage (HECM)—the most common type of reverse mortgage—allows seniors to access this wealth without selling their home or taking on monthly mortgage payments. The result? A reliable source of funds to supplement income, safeguard investments, and improve overall retirement security.


Catalina Gonzalez, an expert in reverse mortgages, has partnered with financial advisors to strategically integrate home equity into comprehensive retirement strategies. Here’s why this approach is worth your attention.


The Untapped Potential of Home Equity


American seniors hold more than $12 trillion in home equity (National Reverse Mortgage Lenders Association). Without tapping into it, many are forced to draw down investment portfolios or struggle with rising expenses—effectively leaving money on the table.


A reverse mortgage offers:


  • No monthly payment requirement – borrowers remain in their home with title in their name.
  • Flexible disbursement options – lump sum, monthly income, or a line of credit that grows over time.
  • Built-in growth – the unused line of credit increases annually, even in a rising rate environment.
  • Portfolio protection – using home equity for expenses allows investments to remain untouched and recover from market downturns.

Protecting Client Portfolios—and Your Business


When clients draw down retirement accounts to meet expenses, their long-term security suffers—and so does your assets under management. By leveraging home equity:


  • Reduce Portfolio Drawdown – preserve investment principal for growth.
  • Avoid Selling in a Down Market – protect clients from realizing losses.
  • Maintain Liquidity – a reverse mortgage line of credit offers an emergency reserve without liquidating other assets.


Example: A client with a $300,000 portfolio withdrawing $2,000/month depletes $24,000 annually. Using home equity instead keeps that $24,000 invested—potentially compounding over time.


The Line of Credit Growth Advantage


Few tools in retirement planning offer the unique benefit of increasing access to funds over time. With a HECM line of credit, the unused balance grows at a rate tied to the loan’s interest rate.


  • $100,000 credit line at 6% → ~$106,000 after one year, untouched.
  • After five years → ~$133,822 available—without a single withdrawal or payment.


This creates a growing safety net, offering flexibility and peace of mind in uncertain markets.


Addressing Outdated Misconceptions


Reverse mortgages once carried a stigma, often due to early versions with fewer consumer protections. Today’s HECMs are federally regulated, feature mandatory counseling, non-recourse terms, and borrower-friendly safeguards. They are no longer a “last resort” product, but a strategic financial tool that may:


  • Increase cash flow
  • Protect investment portfolios
  • Provide tax-free funds for retirement needs*


*Consult with a tax professional for details.


Why Advisors Should Be Talking About This


Ignoring home equity in retirement planning means missing opportunities to:



  • Enhance client lifestyle and reduce financial stress
  • Protect other retirement assets
  • Provide liquidity without selling investments
  • Build a long-term, inflation-resistant safety net
  • For many clients, a reverse mortgage is not about giving up their home—it’s about unlocking its full potential to create a more secure, flexible, and rewarding retirement.


Reverse mortgages are highly specialized financial products. Working with an experienced, trusted professional is critical to ensuring your clients are making the right decision. That’s where Catalina comes in.


  • Catalina has 18 years of experience helping seniors and financial professionals integrate reverse mortgages into retirement strategies.
  • She works closely with financial advisors to educate them on the nuances of HECMs and reverse mortgages.
  • Catalina provides clear guidance and ongoing support throughout the process to ensure your clients feel comfortable and informed.
  • She’s committed to helping your clients unlock the full potential of their home equity while protecting their long-term financial security.

Why Partner with

Catalina Gonzalez

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Let’s Start the Conversation


Home equity is one of the most overlooked sources of retirement wealth—but it doesn’t have to be. Partner with Catalina and discover how a reverse mortgage could give your clients greater financial freedom, protect their investments, and enhance their retirement outlook.


Reach out to Catalina today to schedule a strategy session and explore how reverse mortgages can become a valuable part of your client’s financial plan.