Phil Cannella Reveals the Benefits of Using a Reverse Mortgage for Long Term Care
Phil Cannella believes reverse mortgages are one of the best financial resources available for retired Americans, allowing them to access a lump sum of income with no restriction on its use. In essence, a reverse mortgage is a tax-free loan from yourself to yourself, and you don’t have to repay it for years or even decades.
Reverse mortgages are available to people age 62 and over who usually own their home outright and have idle equity. It allows you to convert your home equity into income that you can use for any reason, and one of the reasons Phil Cannella often recommends is to pay for medical long term care or other related expenses.
There is no reason for retirees who have equity in their homes to face the risk of a catastrophic health event because they can’t afford healthcare coverage. In Phil Cannella’s eyes, equity is a gold mine, and instead of just sitting on it, you can use it to protect yourself. That is what a reverse mortgage allows. It lets you take the money you’ve accumulated over decades and use it towards costly and unexpected medical needs.
Phil Cannella also reminds you that reverse mortgages are also not subject to taxation, which means you get to collect income without having to pay income taxes on it. This is because the equity in your home isn’t taxed as income, even when you cash it out.