Supplement Retirement With Your Home

Downsizing to a less expensive home or taking out a reverse mortgage can supplement your nest egg.  Why focus on housing?  First, home equity is a significant source of wealth for retirees.  Second, housing is often the largest expense in retirees’ budgets. 

Consider downsizing first.  “You want to be in the ‘right’ home for retirement as soon as you can.  And it’s costly to downsize after a reverse mortgage, as the fees and interest will reduce the equity you have in your current home.”

A new e-book from the Center for Retirement Research at Boston College is a useful resource on how to tap into this valuable resource. 

See How to Get Retirement Income From Your Home, The Wall Street Journal, Nov. 30, 2014.