I know it goes against conventional wisdom, and when I retired 2 years ago I paid cash for the house I moved into. But has anyone considered getting a mortgage in retirement for the sole purpose of pulling that equity out of their home and investing it? I was listening to Rich Edelmen and he gave an interesting statistic on high net worth individuals- more than half of them hold mortgages. It's an attractive strategy to consider- you borrow money at less than 4%, put it in a diversified portfolio and over time you should come out ahead.
I jokingly mentioned this to my wife and she gave me a dirty look so I know its not going to fly with her, but I'm curious. Has anyone considered getting a mortgage on their home in retirement for the sole purpose of investing the money?
I jokingly mentioned this to my wife and she gave me a dirty look so I know its not going to fly with her, but I'm curious. Has anyone considered getting a mortgage on their home in retirement for the sole purpose of investing the money?