When should you retire? When should you collect Social Security? And what should you do about the equity in your home?

If you get the answers to those right, you’ve pretty much got retirement right, said Rappaport, a former president of the Society of Actuaries as well a president of a Chicago consulting firm bearing her name.

The equity in your home represents a big part of your wealth. If you’re married, your non-financial assets — mostly the equity in your house — represent about 70 percent of your total assets, according to a 2009 report.

That said, here are some options you have to unlock the equity in your home:

• Pay off the mortgage, if possible, to reduce overall expenses.

• Sell and downsize to a smaller home, freeing up funds for investment or annuity purchase.

• Sell your home, invest the proceeds and then rent.

• Secure a home equity loan or secondary mortgage on the house.

• Get a reverse mortgage.

• Rent out extra rooms.

• Rent out your primary residence and live elsewhere at a lower cost.

incorporate housing wealth in their retirement plan.

McClatchy-Tribune Information Services

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