Question . Our house is free and clear. We have a $100,000 home equity line of credit, and the interest rate is somewhere in the neighborhood of 7 percent. We itemize tax deductions and are in a high federal tax rate, and hoping that any new tax laws will reduce our taxes. My question concerns using the home equity loan for investment. We are considering using $50,000 of the home equity line of credit and investing it in a growth stock for the next five years. An accountant/tax advisor, however, is strongly in favor of having an unencumbered house especially as we are close to retirement. Answer . It is a strong belief that homeowners -- of any age -- should make use of the equity they have gained from their real estate investments. As this column has suggested in the past, there are too many retired persons who are "house rich and cash poor." Hopefully, your house will appreciate in the future, and this appreciation will continue whether you have equity or not in ...
The Chris Fritch Team with Keller Williams Classic Realty
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