Try to get a professional appraisal before and after your home improvement project to make sure that you will see in an increase in value of your home. You don’t want to spend $50,000 to see an $8,000 net increase in value. This is not best way to use your home equity loan. Educational loans and large medical bills can also be financed with a home equity loan if they are a one time, large expense.

The third criteria for getting a home equity loan is that debt should be high interest. Usually credit cards bills are first source of high interest debt in average household. But, what if you’ve got a great card with a $3.9% rate for next two years?

This is definitely a pretty low rate that you can handle with a payment plan. Some schools loans, small business loans and personal loans would also carry a much higher interest rate than you could receive on a home equity loan. These would also be good candidates for a one time home equity cash out to eliminate high interest rates.

Regardless of type of debt that you are trying to finance, a home equity loan is one cheapest and most effective way to exchange large, high interest debts for a consolidated, low interest loan.

To stack odds further in favor of investor/gambler, another right choice is necessary. Only those companies with a long-term history of raising their cash dividend every year will be chosen. This right choice will provide a yearly increase in cash dividend income for retirement years, when dividends are being sent home to help ends-meet, and are no longer adding shares to portfolio. The rising yearly dividend increase will, therefore, help off-set risk of inflation.

Now, there is another right choice to make. To receive best return on your investment/gambling dollars, all companies chosen will be purchased commission-free. All dividends from each company, each quarter being rolled into more shares, will be commission-free. Therefore, every cent earned in ever-increasing cash dividends every quarter and any extra cash put into your investment/gambling plan will work toward always increasing your cash-dividend income.

By investing for right reason and using right choices you automatically become a long-term, dollar-cost averaging, buying investor/gambler of company’s shares, free of commission charges, whose companies raise their dividend every year, with investor’s / gambler’s idea or purpose being to provide an 85% tax-free income, through ever-increasing cash dividends for rest of your life, no matter what price of stock at any given time in market place may be.

For more excerpts from book ‘The Stockopoly Plan – Investing for Retirement’ visit: http://www.thestockopolyplan.com