Putting Your Home to Work When You Retire

You finally made it into retirement. But the living isn’t always easy for new retirees. Money may be tight due to the stormy economy, the money you do have must stretch further longer due to longer life expectancies, and health care costs are rising.  It is difficult to calculate how long your portfolio will last given the variability of market returns.

Traditionally, once you retire, your sources of retirement income will be Social Security benefits, pensions and annuities, and withdrawals from qualified retirement and non-qualified savings accounts.  But what about an asset that may well be your largest: the equity you have in your home? You may not have thought about your house as a component of retirement income, but experts in retirement-income planning are now focusing on housing wealth, such as reverse mortgages as a way to achieve more favorable outcomes in retirement.

Read more from Marguerita Cheng from Let’s Make A Plan HERE



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