A New Breed of Home Equity Line
We typically advise clients to pay down debt, including the mortgage on their primary residence, as they approach and enter retirement. Even so, we encourage them to take out a home equity line of credit for unexpected contingencies, as a ‘just in case’ option.
Life’s unexpected turns can create an urgent need for immediate cash. You might end up needing money to cover the cost of long-term medical care; offer financial assistance to a struggling family member; finance a major home repair. When these things pop up, our clients come to us seeking advice in identifying the best source from which to withdraw funds.
If current markets make it an inopportune time to withdraw cash, or if the distributions will create a taxable event, a home equity line of credit allows our clients to quickly access cash on a tax-free basis.