The home can play an important and sometimes integral role in building wealth and retiring with peace of mind. Considering the growth of home values and the equity developed over time, real estate can be an additional asset that can help diversify the balance sheet and provide flexibility with retirement planning.
Assuming you have a fixed mortgage rate, the home can lock in a portion of your overall living expenses long-term. It can provide tax benefits and deductions. Once the mortgage is paid in full, your overall living expenses are likely to drop
considerably.
Absent sufficient liquid assets on the balance sheet, the home can be utilized as collateral for a loan, or to help fund healthcare or be available to be sold to support a long-term care event later in life.
The home can be the centerpiece of an inheritance that goes to your heirs when you pass away, and under the current laws, it can be sold by those heirs tax free after a step up in basis takes place. For many of our clients, owning a home becomes an
important part of their financial and retirement plan.