Need Money for Elder Care? 3 Alternatives to Reverse Mortgages
There’s been a lot of talk about reverse mortgages lately, thanks to celebrity commercials and a recent report from the Consumer Financial Protection Bureau. But despite all the news they’re getting, reverse mortgages aren’t the only options older people have to generate cash—whether it be for elder care or other things.
Time mentions three alternatives in an article about how people misunderstand and misuse reverse mortgages:
But the bigger concern may be that reverse mortgages have become so mainstream that homeowners fail to consider other and often-better options—like looking first to generate income by annuitizing assets in a 401(k) or IRA; selling the house outright and downsizing; or, with rates so low, doing a traditional cash-out refinancing.
Have you considered any of those options?
If you’re trying to figure out how to pay for elder care, you may find these previous OurParents posts interesting:
- Senior Care: How to Figure Out the Finances
- Paying for Senior Care: The Life-Insurance Sale Some States Don’t Like
- “Hidden” Senior-Care Benefits for Veterans
- 3 Newer Ways to Pay for Senior Care
- Caring for Your Aging Parents: Ideas to Help Pay for Eldercare
- Senior Financial Aid: A One-Stop Source to Help Find It
Leigh Ann Otte is a freelance writer who specializes in health and aging issues. She covers finding and paying for senior care for OurParents. If you have any questions about this post or need help finding senior-care options for a loved one, call 1-866-483-4896 to speak with a care advisor in your area.