While most of my peers would say “it depends…” I’ll tell you that it’s a math question.
Home equity loans and HELOCs (not the same) both are available at interest rates below what you should expect over time from a typical investment. That, for 250 years, has averaged 7%.
The math there says get the loan and leave your retirement balance alone.
The other side is that should the Fed raise interest rates a lot, then either of the two, if they have an adjustable interest rate (and they probably would), then your loan rate goes way up. When that happens - next year or ten years from now - people will get foreclosed just like in 2009. Maybe worse. (That’s not a political comment).
I personally think that’s riskier than necessary for anyone semi- or fully-retired. Fortunately for you, it’s your call!
Disclaimer: I’m not an attorney or a CPA, and you might need one. What I do is help people with their eventual non-working future.
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