Mortgage Equity Withdrawals (MEWs) may effectively be a withdrawal when viewed in a balance sheet, but they are actually loans that use the equity in a home as the collateral. These are also known as home equity loans.
A full liquidation of equity through such a loan is a reverse mortgage. When a homeowner has paid off their home, they have a lot of equity and collateral to work with if they would like to get some liquidity (money) out of a hard asset.
Much the time when someone wants to use their equity to give them some liquidity, they do so when they still have more mortgage payments outstanding, but they are comfortable risking some of their equity, or their entire home, in order to have use of a lump sum of money at that time.
People might do this for all sorts of reasons. These are sometimes called home equity loans or a home equity line of credit (HELOC). The term “withdrawal” here is really a misnomer because you can’t pull money out of the walls of a house, in most cases, but you are pulling cash out of the house in a figurative, if indirect, way.
Annuities are unique products in that they provide the owner with tax-deferred growth, much like an IRA or a Roth IRA
Long-term care insurance is designed to pay benefits for the elderly in need of daily medical services, such as...
There is a wide variety of investments available for every kind of investor: Stocks, bonds, Mutual Funds, ETFs, and so on
A bond ladder is a portfolio of bonds that have different maturities, that may range from months to years in difference
Weighted Average Market Capitalization is a method which gives market cap, for a company, greater weight
When a lending institution offers a Bank Guarantee, they are reducing the risk by guaranteeing payment to the seller
As a general statement, a liability refers to some form of currency (or service) that is owed from one party to another
Profit is a term that is synonymous with earnings and net income, it is basically what is left of revenue after expenses
The Broadening Wedge Descending pattern forms when a stock price makes lower lows and lower highs, forming a downtrend
Freddie Mac is a government-sponsored company which purchases mortgages from banks and securitizes them for sale