The shift to defined contribution plans like 401(k)s, from the defined benefits plans enjoyed by prior generations, should increase retirement resources for most households. Furthermore, other assets, such as home-equity, may constitute approximately one-third of near-retirees’ net worth. This equity may be tapped later if needed (e.g. through a reverse mortgage) during retirement as well. So, for retirement savers, mixing up savings and investment vehicles is usually the best idea.
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