You have limited resources but you do have a home free and clear that you will live in for the rest of your life. You qualify for a reverse mortgage and decide to pursuit that idea. You have the mandatory counseling session, close on the loan and get all that money. What do you do with it all?

There are no restrictions on how the money can be used. It can be used any way you wish. You may select to get monthly payments, a lump sum upfront, or a line of credit that would allow you to draw on the account, as you needed it or a combination of the three. If you select a line of credit with a "growing" credit line your available balance earns interest. A withdrawal at the beginning of the plan could be offset by the interest earned.

More and more baby boomers are getting reverse mortgages-but what to do with the money? How are you going to spend all that money? Here are the top four ways.

---HOME IMPROVEMENTS. Build that enclosed patio you always wanted, a pool in the backyard, etc, etc.

---MEDICAL EXPENSES. You will have medical expenses that come your way. Plan now for them and be ready.

---SUPPLEMENTAL INCOME. For most people this is a practical use that is really a lifesaver to supplement the other monthly income you might have.

---TRAVEL. Go some places you've never been before Italy, Germany, Hawaii, and really spoil yourself. Or go on that cruise you never had?

You can be creative and come up with your own way to spend the money-start that business you've always dreamed about; help your kids with their expenses; pay off all those bills. I think you get the idea.