A new report points out that not only are people not saving enough for retirement, and living longer than expected, they're also cash poor and “house rich”—they own homes into which they've sunk a lot of money but have no way to access liquidity from them. (Photo: Shutterstock)
Amid the retirement crisis comes an idea that's both new and very old—life estates.
A Propmodo report points out that not only are people not saving enough for retirement, and living longer than expected, they're also cash poor and “house rich”—they own homes into which they've sunk a lot of money but have no way to access liquidity from them without either selling or resorting to reverse mortgages.
In fact, some estimate the amount of equity tied up in home ownership by seniors to amount to more than $6 trillion—that's trillion, with a t.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
