Do you believe a paid-off home should stay completely debt-free in retirement, even if accessing some of that equity could help protect other retirement assets?
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I don’t believe there is one right answer for everyone. A paid-off home can provide tremendous peace of mind in retirement, and for some people, leaving it untouched is exactly the right choice. But I also believe home equity deserves a seat at the retirement-planning table. If someone is withdrawing heavily from investments during a down market, carrying higher-interest debt, struggling with monthly cash flow, delaying needed home repairs, or worried about funding future care, it may make sense to evaluate whether strategically using a portion of their home equity could help protect other assets. The question I like to ask is not simply, “How do we keep the house debt-free?” It is, “How do we use all of the resources available to create the strongest retirement possible?” Sometimes the answer is to leave the home completely alone. Sometimes it is not. The important part is understanding the options before a financial crisis makes the decision for you.