Scenario #3: Making Home Equity Liquid
Steven, a high net worth 68-year-old, also wants to use the equity he has in his home now to help his children. He can secure a multi-million-dollar proprietary reverse mortgage for his home which will pay off his existing mortgage and provide enough additional cash for him to purchase outright homes for each of his two children. With no more monthly mortgage payment and the additional cash from the reverse mortgage, Steven is able to retire and experience the joy of helping his two children get set up in a solid financial position.
Ultimately, given the right circumstances, the reverse mortgage can provide a great opportunity to both fill in the gaps of a retirement plan or facilitate gifting and legacy desires while still living. With home values at record highs this could be a great time to secure a reverse to help manage both needs and desires going forward.
About the author: Stephen Resch
Stephen Resch is the vice president of retirement strategies at reverse mortgage lender Finance of America Reverse LLC. The views expressed in this article are those of the author alone and do not necessarily reflect the views and opinions of his employer. This article is not intended to provide financial planning, wealth management, or tax advice. For tax advice, please consult a tax professional.