So if you are counting on your home equity to help fund your retirement, I think you have two options:
1. Seriously consider putting your house on the market within the next year if you plan to take the proceeds and either downsize considerably, rent, or move to an area with lower real estate costs. This brings certainty (within a few percentage points) of the financial value of your home Ė and what you can count on for retirement planning and expenses.
2. If you donít want to sell your home, and donít want to feel forced to sell your house at the wrong time, then you will want to ensure that you have a sizable home equity line of credit available to you should you need it. This will allow you to draw money out of the equity in your home if needed and to wait until you are ready to sell.
As with all financial questions and decisions, there is some value in certainty and guarantees. With your real estate, the only reasonable certainty is the value of your house today. You just donít know what it will be worth in the future.