When Americans retire, they often move from expensive areas to cheaper ones. That frees up home equity that can rival or even exceed retirement funds held in 401(k) plans and the like.
Data: Vanguard; Note: Average difference in value between the house being sold and the house being bought, expressed as a percentage of the value of the house being bought; Chart: Tory Lysik/Axios Visualsthey often move from expensive areas to cheaper ones. That frees up home equity that can rival or even exceed retirement funds held in 401 plans and the like.People still need a place to live in retirement and rarely take advantage of reverse mortgages to get money out of their homes.
Other states with lots of cashing-out potential include California and Hawaii . Importantly, the cashing-out figures include moves within the state, not just moves to a different state entirely.High housing prices are not the reason why younger Americans move to expensive cities and suburbs. But "when you’re retiring, you’re hyper sensitive to retirement resources," says Khang.
For older folks who moved to expensive neighborhoods when they were younger, those resources often include their home — which can prove to be a source of substantial liquidity.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Seahawks officially awarded zero comp picksThe Seahawks were officially awarded zero comp picks Thursday, while their division rivals cashed in.
Read more »
3 out of 4 Americans experienced a product or service problem in the last 12 monthsIt does not take much to remember a bad customer service experience. The outcome is often too few answers, no resolution, and a lot of anger. That last point has been scientifically proven.
Read more »
Friend Who Accompanied 4 Kidnapped Americans Speaks OutCheryl Orange told police the group traveled from South Carolina to Texas last Thursday, and the group headed out to Mexico on Friday morning.
Read more »
Mexican gang said to apologize over deaths of AmericansSomeone claiming to be the Mexican drug cartel allegedly responsible for the abduction of four Americans – two of whom died – has condemned the violence and purportedly turned over its own members who were involved to authorities.
Read more »
Permanent daylight saving time: The clock is ticking in Congress“Spring forward” and “fall back” irk many Americans, but they don’t agree on an alternative. The lawmaker dubbed the “Sun King” is vowing that this can be the year that Congress ends the nation’s much-maligned, twice-yearly time changes.
Read more »