Tag Archive | "take advantage of your home’s equity when you retire"

Use Your Home To Boost Your Retirement Nest Egg


The largest financial asset for most Americans is their home. At the same time, one of the biggest expenses in retirement can be housing. If you’re willing to make some changes in your lifestyle, you can use your home to boost your retirement nest egg.

Plan to take advantage of your home’s equity when you retire.

Use your home to boost your retirement nest egg

Often, as we prepare to retire, we find ourselves with a lot more house than we really need. Downsizing can be a great way to access some of the cash tied up in your home, and — if you’re willing to relocate — you can enjoy a great retirement and spend a lot less on housing, too. Here are some cities where the median price of a home was less than $100,000 in 2010.

  1. Alpena, Michigan
  2. Augusta, Georgia
  3. Columbus, Ohio
  4. Memphis, Tennessee
  5. Milwaukee, Wisconsin
  6. Mobile, Alabama
  7. Pittsburgh, Pennsylvania
  8. Port Charlotte, Florida
  9. Springfield, Missouri
  10. Syracuse, New York

Each of these options has much to offer and there are many other interesting and inexpensive locations that may be just right for you. Plan ahead, do some research and use your home to boost your retirement nest egg.

Click here to read more about using your home to boost your retirement nest egg.

Posted in Creating a Personalized Retirement Plan, Planning for Your Retirement, Retirement Plan Challenges, Saving for RetirementComments (0)

Take Advantage of Your Home’s Equity When You Retire


For many Americans, their home is their biggest financial asset. So, how can you take advantage of your home’s equity when you retire?

Take advantage of your home’s equity when you retire.

Take advantage of your home’s equity when you retire

As a homeowner, you have several options for your living arrangements when you retire:

  1. Stay where you are.
  2. Stay where you are and take a reverse mortgage or a home equity loan.
  3. Sell your home and buy a new one — probably downsizing when you do.
  4. Sell your home and rent.

There may be a substantial financial advantage to selling your home; you’re able to take the full value of the sale — up to $500,000 — free of Federal tax. That can be a huge boon to retirees, although it may require a major change in lifestyle.

Assuming you decide to sell, your options are buy or rent. Buying — even if it’s a much smaller home — ties up a lot of your money in real estate. Renting means you’re not building any equity. Here are some reasons you may want to consider renting:

  1. You need flexibility
  2. You may a hard time selling your home if you need to
  3. You can’t qualify for a mortgage
  4. You don’t have time — or energy — for upkeep
  5. You want to try out a new area
  6. You’re an empty nester

As with all the other decisions you’ll make about retirement, where to live and what kind of lifestyle you want, should be carefully evaluated. And, whatever you choose, there are ways to take advantage of your home’s equity when you retire.

Click here to read more about reasons you might want to rent when you retire.

 

Posted in Creating a Personalized Retirement Plan, Planning for Your Retirement, Retirement Investment Options, Retirement Plan ChallengesComments (0)


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