A presenter argues home equity sits idle and introduces a product claiming to convert up to $100,000 of it into tax-free monthly retirement income using provisions of the U.S. tax code, with no risk of loss.
Chapters
The equity in your home is wasted capital because it doesn't earn interest or pay dividends like your savings or investments, and it could be lost if market values decline in your neighborhood. You see, your home equity is simply the difference between what you owe on your home, your mortgage, and your home's current market value, what you can sell it for. But it isn't real money until you actually sell your home and bank the profit. Which means that it doesn't make sense to leave the equity in your home where it can be lost and where it doesn't earn any interest for you. So what's the solution? A home equity transfer. A home equity transfer combines several provisions of the tax code contained within Sections 101, 121, 163, and 7702 to safely convert up to $100,000 of your current home equity into hundreds or thousands of dollars. Of tax-free monthly income at retirement without any risk of losing—