Retirement Starts Today Ways to Use Home Equity in Retirement, Ep #318
Oct 16, 2023
Brett Mulvaney, a seasoned financial advisor, returns to share his insights on maximizing retirement funds through home equity. The discussion highlights innovative strategies, including leveraging equity via reverse mortgages and the role of home equity as an emergency fund. Brett also clarifies Social Security claiming rules, emphasizing how early filings affect spousal benefits. Listeners will learn about using equity to self-insure against long-term care costs and the importance of strategically managing cash flow during downturns.
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Home Equity Is A Unique Retirement Asset
- Home equity often outpaces inflation and is uncorrelated with stocks and bonds, giving it unique diversification value.
- Many retirees treat it as a "someday" asset rather than an earmarked source of retirement income.
Sell Or Downsize Realistically
- Consider selling and relocating to unlock equity by moving from high-cost to lower-cost areas.
- Be realistic: local downsizing often fails because suitable smaller homes are hard to find or unattractive.
Use Home Loans To Bridge Market Downturns
- Borrow against home equity (HELOC or conventional loans) to bridge temporary cash needs and avoid selling investments in downturns.
- Repay after markets recover to reduce portfolio withdrawals during bad market years.