There’s No Place Like Home: Despite the housing market meltdown, many
affluent baby boomers are relying on their homes as a retirement asset,
according to Bell Investment Advisors, an Oakland, California-based advisory
firm.
A recent study conducted by Bell found that 68 percent of baby boomers with
more than $1 million in investable assets say they are relying on their personal
residences as a retirement asset. Of those respondents, one in four said their
homes represent half or more of their retirement savings.
“The problem with treating their residence as a retirement asset is that
boomers must move to realize any value from their homes,” said Jim Bell,
president of Bell Investment Advisors, in a statement about the report.
“Additionally, they may not be able to sell their homes when they want to or for
the price they want, which may alter their retirement plans.”
Defined-contribution plans are another big source of retirement assets for
baby boomers.
Seventy-one percent of respondents said they have participated in a 401(k)
plan during their careers. Forty-five percent of those respondents said that
401(k) assets represent more than half of their overall retirement savings.
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