By Warren Strycker
There are new people in charge of our government now. We suggest there will be battles ahead for home equity as it relates to the social security fund. Your home equity may not be as safe as you thought.
Wonder no more. A kind of “Brexit” is being presented for voters to ward off further government intrusion into private business. Seniors are among them concerned about social security income they depend upon.
And, President Trump may not be as conservative as you thought. (He is, after all, a populist first). And, in order to save the Social Security Fund, there will be a lot of discussion about home equity. (You can say you saw it here first, but it won’t matter in the long run who said it first because these kind of things start in the “back room” first. My bet is that those discussions have already been launched to trim the expanding national debt.
My concern, because I work with the seniors almost exclusively now, suggesting they use home equity while they have control of it, that the time may come soon, when a more powerful than ever motivated government will suggest, and then order, homeowners to give up their home equity in lieu of receiving social security which continues to lose financial worthiness year by year.
If you find that some kind of outrageous conspiracy theory, not to worry. I’m just suggesting that a government upside down financially with a 20 trillion debt might resort to some unusual ways to balance its budget. (It’s happened before).
Can anyone with knowledge of our government budgeting process, suggest another more obvious view to balance the federal budget than to access home equity?
Blame me if I’m wrong, but I believe that a government may eventually “confiscate” home equity to balance out eventual social security insolvency of that retirement account. Senior home equity is now viewed in the trillions, and growing. All that money in one place gets the attention of lawmakers who don’t balance their budgets. That is the reason you hear me say publically now that if you have home equity, you should consider using it while you can, assuming you may not always have that opportunity.
You were told, as I was, that real estate (your home) would always grow by 6-7% annually, and then we learned it went the other way, after the 2000 financial crisis, and in many places, it is just now being valued at those 2000 levels. Sometimes, when values are high as they are again now, there is consideration of using the money while they are at those levels (much in the same way, investors would use their money when values are at peak levels as they are now. For many, a HECM decision was more difficult when home values were low because appraisals came in lower based on homes being sold at lower levels. Right now, that is not the case (again), but there is no guarantee your home equity will remain at the level it is now.
Don’t get us wrong. Government will not just steal your equity. They are smarter than that. Trump is a real estate guy so he knows equity pretty well, wouldn’t you say? Look for ways for you to be “persuaded” to use home equity or lose your social security benefit. More and more, there is less of us believing that you “earned” this benefit — there will be more talk of using it for the “benefit” of the nation, and less about your earned income benefit.
“Consider the use it or lose it mentally and consider this option — (equity) NOW while you can.”
Consider then now, how you would spend newfound money in retirement if you came to believe it would be a wise option? Consider that this discussion about government intrusion on home equity requires consideration on your part to take away the temptation government may have to block you from your own home equity by thinking of upstanding and wise ideas to spend the money before “they” do. Think about it.