USE THE RIGHT TOOL FOR THE JOB
- Put it in place early to allow maximum time for credit limit growth.
- Use a RMLOC gradually in combination with your portfolio in order to keep the outstanding balance in check.
- If you have a traditional mortgage consider replacing it with a reverse mortgage to improve cash flow and reduce taxable income.
- Use RMLOC advances in lieu of investment portfolio withdrawals, when it is advantageous for another asset (e.g., don’t sell stocks when the market is down).
- Always make careful use of RMLOC proceeds. Spendthrifts and RMLOCs are not a good match. Monthly term or tenure payments may be a better approach in such cases.