"The median homeowner over 65 is sitting on $250,000 in home equity, a figure that is 47% higher than it was before the pandemic, according to a Harvard analysis of federal survey data."
"A home equity line of credit is not a retirement income strategy on its own, but used correctly, it is a bridge that prevents a far more damaging decision, which is selling investments at a loss just to cover living expenses when the market is down."
"Setting up a HELOC while still employed, or early in retirement before income documentation becomes a problem, locks in access to a credit facility that can be much harder to get later."
Homeowners over 65 have seen a significant increase in home equity, now averaging $250,000. Many retirees are cash-poor despite high net worth, leading to reliance on investment accounts. Financial advisors suggest treating home equity as a working asset rather than a legacy. Strategies like standby home equity lines of credit, strategic downsizing, and reverse mortgages can help retirees access funds. Each option has its own benefits and should be discussed with financial professionals to determine the best fit for individual situations.
Read at 24/7 Wall St.
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