We all want the best for our families and sometimes that means making difficult decisions. You might be faced with caring for someone who is disabled or terminally ill, old age, not being able to work anymore due to illness or injury, or a sudden change in your financial situation.
When it comes to supporting your family, there are many ways you can do so.
One way is to use equity release. Equity release is a product that enables homeowners and property owners to borrow against the value of their property to provide funds for other purposes.
With this, you’ll be able to supplement these accounts with money from your home’s worth without having any additional monthly payments or interest on top.
5 ways to support your family financially using equity release
According to John Lawson, Partner at SovereignBoss, many people have equity release plans for their retirement, but few know that you can also use it to support your family. Equity release is an increasingly popular way of earning money and giving financial security to loved ones.
There are 5 ways in which you can use this type of loan product to support your family financially. They include:
1. Providing a monthly income
Many people don’t have enough savings and are struggling financially with daily living expenses that go up every year such as mortgage payments, utility bills, credit card debt rates and student loans among others. With this financial burden it’s hard if not impossible to plan towards their retirement years when they will no longer be able afford.
With equity release, you can get a monthly income for the rest of your life. Equity release is one way to use some or all the money saved in your home equity. It’s a way to supplement your income without getting into debt.
2. Helping your child buy their first home
In the event that your child is struggling to buy his or her first home, it might be time for a new strategy. You’re the perfect person to help your child buy their first home. They will be so grateful, and they’ll really appreciate what you did for them in this big milestone moment of their life. You may use equity release to help them on top of some of their savings.
3. Supporting your child’s education
You want to give your children a head start in life, but you are worried about the financial burden of doing so. There are many ways to support your child’s education and one of them is through equity release. Equity release can be used as a way to pay for college tuition, buy books or computers, cover the cost of living in off-campus housing while attending school full time without incurring more debt than necessary.
4. Planning ahead with funeral expenses
Planning with funeral expenses is a difficult task for many people, but the process can be made more manageable by taking advantage of equity release. One way is to save money on your future burial costs is through an equity release strategy that frees up funds while providing you additional benefits like tax advantages. It’s a good option that can help relieve stress and let families focus on grieving without worrying about finances.
5. Funding a new business
If you want to start a new business, the best way is by using equity release. By breaking down the value of your home, you can generate capital that will be enough for every entrepreneur’s needs: start-up costs, administration, and development fees as well as taxes on gains from its sale. It also provides up-front cash and serves as collateral against future borrowings.
If you are looking for a way to support your family financially, equity release may be the solution. Equity release is essentially releasing some of the value in your home. The money from this loan can then either go towards paying off any debts or providing more income and security for yourself and your family during retirement.
The key to supporting your family by using equity release is making sure you have a plan in place. It’s important to ensure that the money released from your home will be enough for all of you and your family’s future needs.Partner content