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Case Study #1
“House Rich, Cash Poor = Poverty Lifestyle”
Situation:
- Single woman, 76 years old
- Primary residence is paid off
- Value of Home = $1,000,000
- Annual Income = $20,000 [Social Security and ex-spouse’s pension]
- Liquid Assets = $7500
- IRA = $15,000
- Desires to leave her two adult children the home free and clear
Challenges:
- Insufficient Income to enjoy desired retirement lifestyle
- No liquidity for emergencies, travel or health care
- Does not want to sell home and relocate/downsize
- Capital Gains issues if home is sold [14-25% total tax]
- Will not qualify to borrow money on her own home
Solutions:
My Retirement Coach will provide a way to safely reposition her home equity to provide:
- The emotional security of staying in her home and avoid relocation
- Additional income to enhance her retirement lifestyle for the rest of her life
- Safe, guaranteed Side Fund to pay monthly mortgage for the rest of her life.
- If she is insurable, an effective, tax-free strategy to pay off the mortgage for her heirs at death
- Excellent liquidity in safe, guaranteed Side Fund that could pay off mortgage at any time during her life [ HOME IS PAID OFF ON PAPER! ]
- Control of the Equity in home
- Assurance of keeping an asset that will continue to grow over time for her heirs
- NO INCREASE IN MONTHLY EXPENSES
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