As a homeowner, your house is likely your biggest asset.
It can help you build wealth and improve your finances — and in retirement, it might serve as a much-needed source of financial support.
That last part is important. Whether you’re 25 or 55, having a plan is critical to an enjoyable and worry-free retirement.
Want to know how your home can help you plan for your golden years? Here are four ways it can factor in:
1. You Can Leverage Your Home Equity
Most homeowners are sitting on serious amounts of equity right now. You can tap into that by taking out a home equity loan or home equity line of credit (HELOC). In retirement, these can be great options for covering medical bills, paying off higher-interest debts, or funding home improvements.2. You Can Sell and Use the Profits
Many retirees choose to sell their homes and downsize to smaller properties. If you decide to take this route, you can use the sale proceeds to support your retirement — plus, you’ll enjoy a smaller home that’s easier to maintain.3. You Can Refinance
Refinancing could help in a couple of ways. A regular refinance may help you reduce your monthly payment and create liquidity. But if you opt for a cash-out refinance, it could also give you funds to use toward your retirement goals.4. You Can Rent Out Your Home
Your house can become a source of regular income in retirement if you rent out a room or the whole home for short- or long-term tenants. Get in touch to learn about local laws and restrictions.A home can be a valuable financial asset at any life stage. Are you interested in buying a new property? Get in touch today for help.
