Reverse Mortgage and the Kids Inheritance

Often times I hear that when considering a Reverse Mortgage there is a fear there won't be as much to leave to the kids upon thier passing. That is a valid concern if:
You want to leave as much as you can to your kids

But consider a couple of things:
If your goal is to leave as much as you can to your kids -- bluntly you need to find a way to DIE because every day that you live you are spending your kids inheritance.

But seriously, ask your kids if they would rather have you live comfortably or if they would rather have more money when you die..their answer will tell you a lot about them.

Consider that no matter how much is passed to the kids (thousands or millions) the average inheritance is gone in 8 months.

The larger your estate the more Uncle Sam and the attorneys will get - maybe the money should be gifted prior to your death?

The value of money today is going to be more that the value of money they get when you pass away. (what was a dollar worth just 20 short years ago?)

The Reverse Mortgage is set up so there is equity left when you pass. With a 4% appreiciation rate on a $200,000 home, the value of your property will increase by $8,000 a year and compound.
The interest of 6% on $100,000 is $6,000 so the interest you pay if you take a lump sum of $100,000 is paid for by the appreciation and the equity is even added to. The reality of the situation is the Reverse Mortgage interest rate is under 4%.

So if you want to give the most to your kids, maybe a Reverse Mortgage is the way to go...extract the tied up equity -- gift it to your children and you can watch them enjoy it, help them make wise decisions, visit them in their new house that you helped them buy, take the grandchildren on a vacation.. the possibilites are endless because when you are gone -- memories are going to be more valuable than a pile of money.

Finally, your legacy is not money, it is the value systems that you passed on to your children. So enjoy your Golden Years by using the Goldmine you are living in.

Reverse Mortgage Man
(866) 800-0280
www.moneywise.net

Related Videos: http://www.moneywise.net/letters/videos.htm