Planned Solutions

In this episode of the Planned Solutions Incorporated Podcast, The level of margin debt (money borrowed to invest in stocks) was at high levels in late 2021 creating a concern about the high level of short-term speculation in the stock market. However, since then, the amount borrowed to invest in stocks has declined sharply and is now in line with the long-term trendline. This could be a sign that the stock market is normalizing by correcting for some of the excesses that were built following the pandemic. Also, Interest rates have been increasing which is a bad thing for conventional mortgages. However, it may benefit borrowers to take out a reverse mortgage with a line of credit. This is because the limit on the line of credit increases at the same interest rate that would be applied to any balance on the loan. Therefore, the higher the interest rates, the faster the limit on the line of credit will increase over time. And, Higher interest rates have created an environment where many homeowners can earn