Is your retirement plan about selling your home?

October 2018 – Don’t put all your eggs in one basket. Is the bulk of your retirement plan selling your home to fund your retirement? Are you counting on rising home prices? What if real estate prices are down as a result of rising interest rates or taxes, a poor economy, or unforeseen issues? What if your children/grandchildren have returned home (or never left)? Will your home (and other debts) will be paid off by then? Will there be sufficient home equity to cover the retirement lifestyle and type of new home you expect? What if you have to retire sooner than expected due to job loss or poor health? Will you have money for long term health care expenses for both you and your spouse? Obtaining and supporting mortgages and other debt can present problems, particularly if you can’t show lenders sufficient retirement income to cover payments. Your retirement plan needs to contemplate this.