>If a homeowner considers their home an "investment" that means they should be willing to liquidate that investment This is a point which is missed by so many

>If a homeowner considers their home an "investment" that means they should be willing to liquidate that investment This is a point which is missed by so many people. Every empty-nester I know and consider well prepared for retirement has made downsizing a key component of their overall strategy. I get sentimentality but there's as much sentimental value in retaining financial stability in one's later years. Sure, an empty nest, baby boomer household will usually be able to bear the financial burden well into their retirement. However, seniors find themselves facing large, unplanned healthcare expenses all too often. That's where the $XXX,XXX they gained by downsizing around the time of their retirement would prove invaluable. Not only would they avoid the large tax penalty that comes from withdrawing from a 401K, they'd reduce their fixed expenses while retaining an asset (the smaller home) that can be passed down to the next generation. I've known far too many seniors who have been forced to sell the home they "plan to pass down to the children as a nest egg" just to cover medical bills and it's a sad sight to see.