Latest / The Financial Freedom Podcast with Fexingo: Quitting Your Job, Living Off Investments, Independence
How Early Retirees Can Use Home Equity as a Backup Plan
Lucas and Luna explore a less-discussed safety valve for early retirement: the home equity line of credit. Drawing on the story of a couple who retired at 46 and tapped their HELOC during the 2022 market drawdown instead of selling stocks at a loss, the hosts explain how a pledged asset line works, when it makes sense to borrow against your house, and why the 'never pay interest' rule isn't always the right rule. They walk through the math of a $300,000 HELOC at 8 percent, compare it to selling depreciated equities, and discuss the behavioral edge of having a cash cushion…
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