Posts Tagged ‘Retirement’
Creative Home Equity Strategies for Retirement
The baby boom generation is nearing retirement and it is clear that millions of aging boomers are financially under prepared. Reasons are many – poor savings habits, rising medical costs, the demise of guaranteed corporate pensions, and the dreaded squeeze faced by many boomers: i.e. having to pay college costs for their children, care for their elderly parents, and save for retirement, all at the same time.
The outlook is not entirely bleak, however. One bright spot that may help baby-boomers achieve secure a retirement is the record high-level of home ownership and the related growth in home equity. Home equity, the difference between debt owed on a home loan and the value of a home, accounts for at least fifty percent of net wealth for more than half of all U.S. households according to the Survey of Consumer Finance. In much of the country, low interest rates have spurred refinancings and kept housing markets strong, both factors in boosting home equity growth.