That’s what my Grandpa said to me at age 23. I needed $500 to eat and pay the rent. She sent a check. Just like that.
Think about it for a minute. When you pass away your kids will probably be well over 50, maybe even 60. Maybe they will still need the cash, but chances are they are in a much needier place right now. Still raising kids, or maybe your grandkids are in college. Many adults in their 30’s and 40’s have gotten themselves into some credit card debt. Wouldn’t it be more fun to help them when you can see the benefit.
Clearly, you don’t want to start giving away the funds you’ve acquired to ensure that you’ll have what you need for as long as you might live. But maybe you’ve been fortunate, and the basics are taken care of and then some.
So, here’s a method of doing the warm hand thing that you might not have thought of. You probably have a lot of equity in the home. Whether you home is paid off or still has a mortgage, you can tap that equity and eliminate your monthly payment, and possibly still have a lump sum to send to your needy kids.
What are the requirements? One person on title has to be at least 62. You have to live in the home as a primary residence. And you need to have enough equity to make the deal work out.
What’s the down-side. You will not have as much equity for those same kids at the end. There very well might be something left based on market conditions and the value of your home when that day comes. But if there’s nothing left, you still have done what you intended; helped them out when they most needed it.
If you’d like to find out more about how you can generate more cash flow, a line of credit, and/or a lump sum distribution through a reverse mortgage, talk to the guy who has been helping seniors figure out the smart solution for well over a decade. Call Brandon Webb now at 1-800-486-8786 ext. 868