Think your home is a nest egg? Think again – Real Estate – MSNBC.com
Not that we as a country have good retirement strategies in general, but here’s another one by the wayside:
Think your home is a nest egg? Think again – Real Estate – MSNBC.com
Many, if not most, homeowners do expect to retire “on the house” according to the Center for Retirement Research at Boston College.But at the same time they are reducing their own equity by borrowing against their homes for other expenses. They may be counting on inflated home values that could fall by the time they are ready to sell and move. They may be counting on a resource they never really want to sell.
Story continues below ↓ advertisementIn other words, they may not be being very realistic.
“We all say people will sell their house and that’s how they are going to live,” says Bev Moore of MainStay Investments, a division of New York Life Investment Management. ”But the bubble might be in the process of bursting.”
Only 11 percent of older people who are already retired actually expect to live off of their home’s value, she says.
“Baby boomers have to stop going to Home Depot and start doing more planning and saving,” Moore said.
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