Here are a few more reasons why equity repositioning is so important for homeowners today. Our grandparents used to have the luxury of having a pension. This was a paycheck for life. It was a stream of income you could not outlive and it was designed to cover your basic needs (food, gas, general living expenses etc.) The idea was to pay off your house so you would not have a mortgage payment to worry about and then your pension and social security would be enough to live on.
The 401k and IRA were created in the mid 70’s and they were designed as a “nest egg concept” to supplement your pension. You would use this lump sum to buy the boat, motor home or vacation house. Your pension covers the bills; the nest egg makes retirement fun.
As we know today, pensions have disappeared. We are now trying to use the 401k and IRA as our pension. Unfortunately it doesn’t work. First, we get taxed on the full accumulation value of these vehicles when we go to take money out. This eats up around 30% of the value. (Maybe more).
Second, in most cases people have their 401k and IRA dollars at risk in the market. Many hard working Americans have lost huge amounts of money due to market losses and fund miss-management. I have seen to many cases where individual portfolios have been wiped out.
Using a proper equity repositioning strategy you can create a tax free income stream to create your own pension. Move a portion of your home equity out to one of the vehicles we suggest and watch it safely grow. First, structured properly you are not taxed on growth or withdrawal. Second, you get good upside potential of the market with NO RISK of loss. Historically these vehicles will net you a 7%-8% tax free return. And that’s all you need to create real wealth. Learn more about home equity management, equity repositioning and where to put the money so it grows safely by viewing our online seminar.
