“Retirees, Make the Most of Your Home Equity”

A Middle-Market Senior Care Solution,” by Bruce Stahl and Winona Berdine, Long-Term Care News

 

Quote:    “A debt-free retirement has been the ideal scenario for so long that older adults often overlook a valuable financial resource: their home. Collectively, homeowners age 62 and older have a record $6.5 trillion of ‘tappable’ equity, according to data analytics firm Black Knight. Individually, home equity accounts for more than a quarter to almost half of the median net worth of retirees, depending on age, according to the Federal Reserve Bank of Philadelphia. … For instance, the money can be used for some laudable goals: to pay off higher-priced credit card debt, remodel a home with features to help you age in place, delay taking Social Security until you qualify for the maximum payout, BUY LONG-TERM CARE INSURANCE or pay the tax bill for a Roth conversion.” (Emphasis added)

 

LTC Comment:  Using home equity to generate the cash flow to protect one’s entire estate with private LTC insurance is a “no brainer.” Except that the brainless government exempts most home equity while providing free or subsidized LTC to people who didn’t bother to insure. Why tap home equity for LTCI if Medicaid protects the home equity and provides the LTC?