What to Consider If You Think You’re Asset-Rich but Cash-Poor

What to Consider If You Think You're Asset-Rich but Cash-Poor Bulman Wealth Group

There’s a chance that an individual may find themselves in a circumstance where they possess significant wealth in their house but lack sufficient cash in their bank account. Over the years, as you’ve been paying off your mortgage, the equity in your property might have accumulated greatly. But having substantial home equity doesn’t necessarily equate to having ample cash readily available for expenses. And accessing this money would require major financial adjustments. If you’re nearing retirement and worried about your available cash reserves, this article will present some alternatives to help you modify your financial status.

A Reverse Mortgage

A reverse mortgage could be a viable choice if you’d like to use your home’s value for cash flow, but it warrants thorough evaluation. Essentially, a reverse mortgage is a loan that enables homeowners to borrow against the value of their home. This loan permits them to receive payments either on a monthly basis, as a one-time sum, or via a line of credit. The amount disbursed through the loan must be repaid when the borrower passes away, relocates permanently, or sells the house.[1] While this method can generate cash from your equity, it may not be the ideal solution for everyone, as it comes with numerous limitations. Some of these constraints include:

  1. You must be at least 62 years of age.[2]
  2. You must own your home or hold a significant portion of the equity in the property.[3]
  3. Additionally, you are required to pay various fees when establishing and maintaining the reverse mortgage.[4]

A Home Equity Loan
If you have significant equity in your home but have limited cash, a home equity loan might be a suitable alternative. This conventional loan’s value is determined by the difference between your outstanding mortgage balance and the property’s present market value. While a reverse mortgage does not necessitate monthly payments, a home equity loan does require you to make regular payments.[5]

Talk with a Financial Advisor

Discussing your financial circumstances with an advisor can be wise. They possess the knowledge to navigate you through your available choices. With professional knowledge in areas such as investment services and tax planning, financial advisors can equip you with the necessary information to make crucial choices. If having a financial professional in your corner sounds like something that could benefit you, feel free to Click HERE to contact us at Bulman Wealth Group for a no-obligation assessment of your current situation.


All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or an indication of future results.

Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an SEC Registered Investment Advisor. Insurance products and services are offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. Being registered as an investment advisor does not imply a certain level of skill or training.

Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency.

Any statements or opinions expressed should in no way be construed or interpreted as a solicitation to sell, or offer to sell, advisory services to any residents of any State other than the States where otherwise legally permitted.

Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph.

Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.

Share this post with a friend or family member!


Archived Blog Posts