What about reverse mortgages?
If you run out of money in retirement, obtaining a reverse mortgage on your residence can be an option. You must be at least 62 years old and own the residence (although it does not need to be paid off). A reverse mortgage gives you access to cash based on your age, the equity in your home and the interest rate. The older you are, the more the bank will generally be willing to lend. The money can be taken as a line of credit, lump sum payment or periodic payments. When you die or sell the home, the bank is repaid the amount borrowed and interest due. If there is money left over, it belongs to you or your estate. If the sale of the property does not cover the amount owed, you or your heirs do not have to pay the difference. Generally you will have to pay mortgage insurance during the life of the loan to safeguard the bank should this happen. While this may sound good, it is not without downsides. The fees charged to originate the loan can be extremely high. The interest rates may be very high. The cash you receive may limit your Medicaid eligibility. There may be a clause that requires you to pay back the loan if you have to leave your house (say for short term rehab from illness or injury) for a specified period of time. There have been some unscrupulous players enter the field, so shop carefully. And be sure you have an advisor you trust read the loan agreement.