Here is another post discussing how seniors are handling finances. I’m not a financial advisor (nor do I play one on TV), but I know enough to be dangerous.
This article from USA Today talks about how more seniors are using debt to finances their retirement. Whether it is an additional mortgage or credit cards, the easy access the debt has a higher percentage of seniors using such “financial planning” as a strategy.
The article didn’t go into detail about one of the biggest reasons that seniors are using debt — funding long term care. I think this is a really terrible strategy when it comes to the house because it means seniors are turning an exempt and illiquid asset (the home) into cash, which can be quickly consumed….and then what?
Posted by Victor Medina, Medina Law Group