Raise Income to Desired Level, Use Balance to Reserve Future Borrowing Power

The major priority of some seniors is to raise their spendable income to a comfortable level indefinitely, and to reserve whatever borrowing power they have left for occasional or emergency use. They would specify the tenure payment they need for this purpose, and take the balance of their borrowing power as a credit line.

Because tenure payments do not use much borrowing power in the early years, borrowers who take one have a modified credit line – an amount they can draw if they switch from the tenure plan to a credit line. The total line at any age is the sum of the unused line with which they began, which grows larger every month, and the modified line.

In or near retirement? The Professor’s Retirement Funds Integrator (RFI) might enhance your life during retirement.

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