The majority of home owners have most of their net worth locked in their home equity. If that’s your situation, it may be prudent to diversify your assets and reduce your financial risk. Access to money without debt means you can consider financial planning and investment strategies that could improve your family’s quality of life today and help secure retirement income.
Manage Estate Taxes
By accessing your equity, you can move an estate taxable asset into purchasing a life insurance policy to cover estate tax liability, while providing additional resources for your family.
Later in life Expenditures
As you move towards retirement, significant expenditures are on the horizon - costs such as college and other education expenses, health care, and living expenses. Rather than borrowing against your home, incurring monthly payments at a time of possible fixed income, you can generate cash on an interest free basis. In addition, the cash you access allows you to avoid to prematurely tapping into other retirement funds.