Home ownership can account for a major portion of a person or couple's assets. Selling off property and opting to rent can have a big impact on the amount of stability and securities available for the retirement years.
Couples who consider
selling their home and using the proceeds for investment purposes need to be aware of what that decision involves. By choosing to live off the interest of investments, a couple would then be making a large portion of their invested money subject to what are known as "spend down" rules, which apply before one spouse is old enough to qualify for Medicaid, which would cover nursing home care costs.
Couples that have made the decision to turn their home into their nest egg need to be careful. In the event of the untimely death of a spouse, the one that remains could be in a position where they have no place to live. Couples should ensure that these situations are taken into consideration prior to selling off their home, their greatest asset.
There are several other important factors and additional options to be considered. By holding onto your home, you retain the ability to deduct mortgage interest and tax payments annual on your taxes. Options for the obtaining of emergency cash include looking into reverse mortgages and home equity loans.
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