Despite your having made clear to your two children that, once they were through with their schooling they would be expected to manage their finances on their own, you now find yourselves feeling differently when it comes to your twin granddaughters. Passionate and very hardworking entrepreneurs, the girls are in sore need of a financial boost to keep their floral business competitive. They are trying to break into the wedding planning market with a new concept. You’re not in a position to “invest” giant sums, but you would like to, over the next year or two, “invest” as much as a few hundred thousand dollars.
You’re satisfied that, turmoil in the investment markets notwithstanding, your own financial situation has remained stable. With your home paid off and in good repair, you’re hoping to live out both your lives in place. From a financial standpoint, you’ve been able to manage well on retirement plan and other investment income and social security. You would be able to gift some cash to the granddaughters without disrupting the portfolio, but not in the amounts really needed to make a difference.
You might consider using the equity you’ve accumulated in your home as the source for funding investments in your granddaughters’ business venture, by arranging a reverse mortgage line of credit. There will be no principal or interest payments due, and therefore no effect on any of your current or future sources of income. Any withdrawals you make to invest in your grandkids’ business will be tax-free. Meanwhile, the unused portion of the credit line will be credited with growth at the same rate as the interest being charged on the loan.
Your housing wealth might be just the ticket to helping your granddaughters create wealth of their own.
If you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down)