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BUSINESS Thursday 2 June 2022
Should you use a reverse mortgage to pay for long-term care?

By KATE ASHFORD of Nerd- mortgage requires that you
Wallet live in the home. If you're
Someone turning 65 has the sole borrower of a re-
nearly a 7-in-10 chance of verse mortgage and you
needing long-term care have to move to a care
in the future, according to facility for a year or lon-
the Department of Health ger, you'll be in violation of
and Human Services, and the loan requirements and
many don't have the sav- must repay the loan.
ings to manage the cost Because of the costs, re-
of assisted living. But they verse mortgages are also
may have a mortgage-free best suited for a situation
home — and the equity in where you plan to stay in
it, giving them the potential your home long-term. They
option of a reverse mort- don't make sense if your
gage to help cover care home isn't right for aging
costs. in place or if you plan to
Here's how to evaluate move in the next three to
whether a reverse mort- five years, says Marguerita
gage might be a good op- Cheng, a certified financial
tion. planner in Potomac, Mary-
WHAT IS A REVERSE MORT- land. But for home health
GAGE? care or paying for a second
A reverse mortgage is a borrower who's in a nursing
loan or line of credit on home, home equity can
the assessed value of help bridge the gap. If you
your home. Most reverse A home with a "Sold" sign is shown, Sunday, May 2, 2021, in Surfside, Fla. want to pay as you go and
mortgages are federally Associated Press not pull money out of secu-
backed Home Equity Con- rities in a down market, you
version Mortgages, or HEC- that equity. How much you until the second borrower home could be sold for. can pull it out of your home
Ms, which are loans up to can access depends on dies or moves out. CAN YOU USE A REVERSE equity, says Dennis Nolte, a
a federal limit of $970,800. your age and the home's A reverse mortgage is a MORTGAGE FOR LONG- CFP in Winter Park, Florida.
Homeowners must be 62 appraised value. You must non-recourse loan, mean- TERM CARE? ADVANTAGES OF A RE-
years old to apply. keep paying taxes and in- ing if the loan amount ends A reverse mortgage can VERSE MORTGAGE
If you have at least 50% to surance on the home, and up being more than the provide a crucial stream Your home is generally one
55% equity in your home, the loan is repaid when the home's value, the borrower of income to pay for long- of your biggest assets, and
you have a good chance borrower dies or moves out. or inheritor won't have to term care, but there are using its value to handle
of qualifying for a loan or If there are two borrowers, pay more than the loan some limitations. long-term care costs can
line of credit for a portion of the line of credit remains amount owed or what the For instance, a reverse make sense.q
Sheryl Sandberg, longtime No. 2 exec at Facebook, steps down

By BARBARA ORTUTAY from its infancy into an over on issues such as women
SAN FRANCISCO (AP) — $100 billion-a-year power- in the workplace and most
Sheryl Sandberg, the No. house. recently, abortion.
2 executive at Facebook Meta CEO Mark Zucker- "I think Meta has reached
owner Meta, is stepping berg said in his own Face- the point where it makes
down, according to a post book post that he doesn't sense for our product and
Wednesday on her Face- plan to replace Sandberg business groups to be more
book page. Sandberg has in the company's existing closely integrated, rather
served as chief operating structure. Javier Olivan will than having all the business
officer at the social me- serve as Meta's new COO. and operations functions
dia giant for 14 years. She Zuckerberg said this "this organized separately from
joined from Google in 2008, role will be different from our products," Zuckerberg
four years before Face- what Sheryl has done. It will wrote.
book went public. be a more traditional COO Sandberg has had some
Meta did not immediately role where Javi will be fo- public missteps at the
respond to a message for cused internally and op- company, including her In this Sept. 5, 2018, file photo, Facebook COO Sheryl Sandberg
comment. erationally, building on his attempt to deflect blame testifies before the Senate Intelligence Committee hearing on
"When I took this job in 2008, strong track record of mak- from Facebook for the Jan. Capitol Hill in Washington.
I hoped I would be in this ing our execution more ef- 6, 2021, insurrection at the Associated Press
role for five years. Fourteen ficient and rigorous." U.S. Capitol. In an interview
years later, it is time for me While Sandberg has long later that month that was true. Internal documents, time to figure out how to
to write the next chapter been Zuckerberg's No. 2, streamed by Reuters, she revealed by whistleblower manage discourse without
of my life," Sandberg wrote even sitting next to him — said she thought the events Frances Haugen later that enabling violence?" one
on her Facebook page. pre-pandemic, at least — in of the day were "largely or- year, showed that Face- employee wrote on an in-
She did not say what she the company's Menlo Park, ganized on platforms that book's own employees ternal message board at
planned to do. California, headquarters, don't have our abilities to were concerned about the the height of the Jan. 6 tur-
Sandberg has led Face- she also had a very public- stop hate, don't have our company's halting and of- moil. "We've been fueling
book — now Meta's — ad- facing job, meeting with standards and don't have ten reversed response to ris- this fire for a long time and
vertising business and was lawmakers, holding focus our transparency." ing extremism in the U.S. we shouldn't be surprised
responsible for nurturing it groups and speaking out This turned out to be un- "Haven't we had enough it's now out of control."q