Financial Planning
Home Equity Strategies for the Next Twenty Years
Your equity is an asset with a job description. Here are the four most common ones.
By Lisa Copeland · 7 min read
Equity that sits inside a large house produces no income and carries real cost. Right-sizing is, at its core, an asset reallocation decision.
Strategy one: buy the next home outright and eliminate housing debt entirely.
Strategy two: finance conservatively and invest the difference for growth and liquidity.
Strategy three: fund a second property — a lake place, a condo near the grandchildren — that generates joy and possibly income.
Strategy four: create a bridge to delay claiming Social Security, often one of the highest-return moves available.