The article discusses the implications of relying on reverse mortgages for long-term care funding. Weston explains that while reverse mortgages can benefit homeowners with valuable property but limited cash, they can lead to diminished equity over time. She emphasizes the importance of understanding longevity risk and suggests that individuals often make decisions based on immediate financial needs without considering their long-term consequences. Weston advises seeking elder law expertise to navigate Medicaid eligibility for long-term care to avoid potential mistakes and delays in coverage.
Weston characterizes a reverse mortgage as a more ideal option for those who are house rich and cash poor, which can often be misconstrued as a loan of last resort.
Many people make the mistake of underestimating their longevity risk, focusing too much on current income while jeopardizing their future financial stability.
Weston suggests that seeking the advice of an elder law attorney can guide in navigating Medicaid eligibility for long-term care expenses.
While critical of reverse mortgages, Weston acknowledges their potential benefits, suggesting they can finance long-term care in specific situations.
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