I was recently interviewed by the AARP about ways to get the most from your assets as you move into retirement.
I noted that a great way to do this is by relocation. Not on a large scale, like how so many automatically move to Florida or California, but on a micro-scale.
I’m talking about 50 or 60 miles, to just outside a major metro area. You’re still close enough to get most of the benefits of the city, but avoid the premium prices of real estate and other goods and services in its heart.
This way, you can keep all the friends and routines you’ve built up over the years and extract up to hundreds of thousands of dollars in equity from your housing investment.
Sweetening the pot, federal tax law lets you keep as much as $250,000 of the gain tax-free if you’re single, and up to $500,000 for couples.
Take a look at the entire article here, entitled “4 Ways to Tap Your House for Cash” (my quote is on the second page):
It’s nice to be featured in AARP’s magazine, as its circulation is the largest of any magazine in the world.
There’s also a nice graphic on their site that illustrates some possibilites of what I’m talking about: