The case for tapping home equity in retirement.
The case for tapping home equity in retirement.
May 16, 2023, Reverse Mortgage Daily By?Chris Chow
The home may indeed be the solution for many struggling retirees who can access their home equity, either through a reverse mortgage or other home equity solution, to fund living expenses, pay for long-term care, college tuition, travel plans and all sorts of retirement adventures.
·???????In the U.S., the retirement savings gap is approaching $4 trillion, yet homeowners age 62 and older have amassed more than $11.5 trillion in home equity value.
·???????Still, many seniors remain unwilling to explore home equity tapping as a way to make ends meet, despite an abundance of research showing that the majority of older people prefer to remain in their homes.
·???????The benefits of aging in place also should not be overlooked according to data 2022 from the?University of Missouri?and?AARP. Researchers are increasingly finding that those who age in place are more likely to avoid physical and mental declines and have better health outcomes.
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·???????Some are using their home equity loan proceeds, which are often income-tax-free*, to invest, pay taxes on a Roth IRA conversion and other asset-leveraging maneuvers**.
·???????Older homeowners use their homes’ ‘superpower’ to achieve their financial goals, whether by tapping home equity, securing Home Improvement?Loan, or generating additional income by home sharing with Silvernest.
*Wallick & Volk INC. does not provide tax advice, Seek a professional tax consultant for tax advice.
**Wallick & Volk INC. does not provide investment advice, Seek a professional financial planner for investment advice.
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