Equity refers to the market value of your home, minus what you owe, and that equity in your home can be tapped to help pay for retirement. After you have paid off your mortgage, Miracle Mile Advisors tells US News & World Report that you could always downsize your home and invest your remaining funds in order to get you through retirement.
“Your new home hopefully costs less to maintain than the larger home you sold,” says Joe Alexopoulos, fiduciary financial advisors and managing director at Miracle Mile Advisors. You could place the extra proceeds from the sale into an investment that will lead to additional income.
Read the full article: How to Use Home Equity in Retirement (US News & World Report)
