Establish Your Line of Credit As Early as Possible
Once thought to be a strategy effective only for the mass-affluent, new analysis from researcher Barry Sacks shows that the “almost-affluent” can benefit from establishing a HECM line of credit as early as possible, particularly if they are house rich and cash poor. Sacks shows that taking the HECM early produces a significantly higher retirement income than a later establishment of the credit line, while reducing the probability of exhausting his or her assets.
Sacks, a San Francisco attorney, recently co-authored a new article published in the Journal of Financial Planning, titled Integrating Home Equity and Retirement Savings through the “Rule of 30.”
