Financial Planning

The majority of homeowners have most of their net worth locked in their home equity. If that’s your situation, it may be prudent to diversify your assets and reduce your financial risk. Access to money without debt means you can consider financial planning and investment strategies that could improve your family’s quality of life today and help secure retirement income.

Safeguard your nest egg.

With a REX Agreement, you may be able to delay withdrawals from your tax-exempt retirement accounts, allowing them to continue to grow tax deferred. You may also be able to delay taking social security, thus increasing your future monthly benefit.

Plan (and protect) your estate.

Estate planning specialists may advise you to manage or reduce estate taxes through strategies like purchasing insurance in an Irrevocable Life Insurance Trust or "ILIT." These policies can be expensive. However, now that you have an alternate source of funds, you may be able to make sure more of your hard-earned assets get passed on to your family.

Make new investments now.

By eliminating the cash flow demands that come with loans, a REX Agreement is an excellent way to fund a new business or invest in stocks and bonds. You can also fund tax-advantaged 529 savings and prepaid plans or pay for college with cash instead of taking on more debt.

Purchase life insurance.

Life insurance can be an expensive long-term commitment; but now that you have a new source of funds you may consider purchasing a policy to protect your family.

Fund long-term care insurance.

You may be worried about what could happen if you ever need long-term care. Still, the cost of a long-term care policy may have you "hoping for the best." A REX Agreement can provide the cash you need to protect your assets, your house, and your family.