Is your home really supporting your retirement — or secretly draining your wealth and health? In this episode of Next Act Ninjas, Rachael Van Pelt (Healthspan Scientist, Realtor, and Coach) challenges the myth that “mortgage-free at 65” is the ultimate goal. You’ll learn why homeownership can be both a blessing and a burden, and how to turn your biggest asset into a tool for wealth longevity and healthspan.
Is your home really supporting your retirement — or secretly draining your wealth and health? In this episode of Next Act Ninjas, Rachael Van Pelt (Healthspan Scientist, Realtor, and Coach) challenges the myth that “mortgage-free at 65” is the ultimate goal. You’ll learn why homeownership can be both a blessing and a burden, and how to turn your biggest asset into a tool for wealth longevity and healthspan.
We’ll cover:
Bottom line: Your house isn’t a trophy. It’s a tool — and used strategically, it can multiply your freedom, independence, and longevity.
👉 Free Coaching Call:https://calendly.com/rachael-vanpelt/discovery
Chapters
00:00 Introduction: Why Your House Might Be Shortening Your Lifespan
00:56 The Double-Edged Sword of Homeownership and Health
01:57 When Your Home Becomes a Financial and Physical Liability
02:25 The Power of Location: Walkability, Social Connection, and Aging Well
03:43 Strategy #1: Downsizing or Right-Sizing for Lifestyle Alignment
04:29 Strategy #2: House-Hacking to Unlock Cash Flow and Connection
05:23 Strategy #3: Reverse Mortgages Explained—Modern HECMs Demystified
06:22 The Hidden Costs of Clinging to the “Forever Home”
07:38 A Framework for Deciding: Audit, Health, Opportunity, Numbers
08:52 Common Objections: Mortgage-Free at 65 and Leaving the House to Kids
10:15 Your Next Steps: How to Turn Home Equity into a Longevity Multiplier
11:18 Closing Challenge and Call to Action
Hey, hey, welcome back to Next Act Ninjas, the go-to podcast for mastering your health and wealth longevity. I'm your host, Rachael Van Pelt. Today, I'm going to challenge some deeply ingrained assumptions about one of the biggest financial assets most of us hold, our homes. For many of us, the house we live in is not just where we sleep. It's the biggest line-item on our financial balance sheet. But there's an uncomfortable truth, if your home is sucking up cashflow, time, energy and strength, then it's probably eroding your longevity instead of supporting it. So today we're going to talk about how to treat home equity as a wealth longevity tool, not just a trophy. And spoiler alert, this episode might just make you question whether "mortgage-free at 65" is the Holy Grail it's cracked up to be.
Home ownership is a double-edged sword, isn't it? On the one hand, owning your home has been correlated with better health outcomes. Large surveys show that homeowners tend to live longer and report fewer chronic health conditions than renters. But when you peel back the layers, most of that health advantage isn't about homeownership itself, it's about financial stability. Sure, if owning a home gives you stability, autonomy and freedom from the volatility of rent, yes, it's beneficial. But if your home is draining your liquidity, tying you to a location that no longer supports your lifestyle or forcing you to climb stairs long after your body can handle it, then that so-called "asset" is becoming a liability.
Think about it. A $1 million house that, even with a paid off mortgage, eats up $30K to $40K per year in taxes, insurance, maintenance, and utilities is not a trophy. It's a weight, especially if you don't need all that space. I see this all the time as a Realtor. People will tell me, "Well, we plan to age-in-place. This is our forever home". But then I ask, is there a bedroom, full bath, and laundry on the main floor? How much are property taxes going up every year? And what happens if the roof and furnace and plumbing all age-out within the same decade? Suddenly the physical and financial reality looks very different.
And we don't want to forget healthspan. One of the strongest predictors of longevity isn't genetics or even exercise. It's social connection. Where you live shapes your daily rhythms, your interactions with other people, your stress levels, and your ability to stay mobile. If your home is in a car-dependent suburb where you can't walk to the grocery store, where winters trap you inside for months or where your social circle has already moved away, then that home may be eroding your mental and physical reserves and shrinking independence.
Contrast that with the right-sized home in a walkable neighborhood, maybe near your adult children or close friends. And now every errand is a chance to get your walking steps in. Sitting on your front porch or walking to a community park becomes a chance for you to have casual conversation with someone. And you're more likely to enjoy holiday gatherings with those family and friends nearby. That's the kind of social connectivity that's not just a "nice-to-have", it's protective against dementia, depression, and disability. It's a hedge against loss of independence. So when we think about home equity as a longevity tool, it's not just about extending wealthspan, it's about whether your house is improving healthspan.
But I want to get practical. There are three main ways that I typically coach clients to think about unlocking home equity:
The first option is downsizing or right-sizing. It's the most obvious and yet often, I think it's dismissed because people are afraid of change. Selling the big family home and moving into something smaller, more efficient, and more aligned with your current life stage, it can free up hundreds of thousands of dollars in equity. That capital can then be reinvested into the market and keep growing while still retaining some liquidity. Or it could be used to pay for experiences while you're still in your healthiest decade. So right-sizing is not about giving anything up. It's about aligning your home with lifestyle.
Option two is house-hacking. If you're not ready to sell and your house lends itself to this option, you may be able to put your equity to work by turning a part of your home into an income stream. For example, you might be able to build an accessory dwelling unit (ADU) or reconfigure a part of your home like a basement and rent it out. Depending on your situation, you might consider renting long-term to, say, other retirees, or mid-term to students, or short-term to tourists. It just depends on the space that you have to rent and the type of renters who are looking in your area. Not only does renting create cash flow to support your retirement, it can be a great opportunity for social interaction. Hosting and engaging with guests or tenants can provide a sense of purpose and protect against isolation in retirement.
Option three is a reverse mortgage. I think this is the most misunderstood option. If you're over the age of 62, a home equity conversion mortgage (HECM) allows you to tap your home equity without selling. Many people recoil at the idea, picturing predatory products from decades ago, but the truth is modern HECMs are federally insured. They're highly regulated and they can be structured to provide either a line of credit or monthly income without losing ownership of your home. When you use them strategically, a reverse mortgage can even protect your other investments by reducing the need for you to sell them in a down market. So it can be a shock absorber for sequence-of-return risk.
But regardless of strategy, whether it's right-sizing or house-hacking or reverse mortgage, the goal is to leverage your biggest asset to support your lifestyle long term.
So then why do so many people resist tapping into their home equity? Well, in my experience, it's a mindset thing. The house just becomes part of your identity. It's where you raised your kids, hosted holiday gatherings, planted your garden. So letting go of it feels like you're letting go of a part of yourself. But if you're hanging onto a house that no longer fits your body, your finances, or your social life, it has a real cost.
I've seen retirees drain their 401k prematurely just because they refused to move and were afraid to tap into that equity. I've seen people become isolated in big suburban homes after all their neighbors have moved away because they're afraid to "start over" somewhere new. I've seen people try to age-in-place only to get stuck living on one floor of their home because they could no longer get up and down the stairs.
So clinging to that trophy house can be risky. It can mean more falls, more isolation, more financial stress. And when it comes to longevity, stress is a killer. It accelerates biological aging. If your house is stressing you out, it is literally shortening your lifespan.
How do you decide what strategy is best for you? I'm going to give you a framework that I use with my coaching clients.
First, audit your current home. What's the annual cost of upkeep? Does it support your healthiest lifestyle? Will it continue to support that 10, 20 years from now?
Second, audit your health trajectory. At 65, are the stairs a challenge? At 75, will you want to still drive 30 minutes to the grocery store? At 85, will you feel isolated if you can't drive at all?
And third, weigh the opportunity cost. What experiences, travel, or family time are you forgoing because half of your net worth is locked up in your home? What stress are you tolerating because of physical maintenance or financial upkeep?
Fourth, run the numbers. Model the different scenarios, either yourself or with the help of a professional. How much equity would you be able to pull out if you downsized or took out a reverse mortgage? What kind of cash flow could you bring in renting out a room or ADU? And then how would that change your financial outlook 10, 20 years from now? Most people are surprised when they see just how much breathing room it creates.
I know some of you are thinking, "But Rachael, I've worked hard to own my home free and clear. Isn't that the goal"? Yes and no. Living mortgage free is liberating and it will reduce living expenses. But if the remaining carrying costs and maintenance of that home remain burdensome, then it's a hollow victory. You haven't really achieved the financial breathing room that you were hoping for.
Another objection I hear a lot is, "What about leaving the house to my kids"? And to that I say, let's be real. Most loving adult children would much rather that you live a vibrant life and use your equity to travel, stay healthy, and enjoy time with them. They don't want to inherit a house you spent your final decades struggling to maintain. And these days, few will choose to live in the home you bequeath. Your kids are more likely to just sell, divvy up the proceeds and move on with their life. Not because they didn't cherish the memories that you built in that home, but because it's what aligns with their current lifestyle. So you may as well make decisions now that fit your lifestyle. The utility of your home is in how well it supports you today, not your kids in some hypothetical future.
So here's my challenge for you this week. Grab a notebook and answer three simple questions. 1) "Is my home helping me live longer, healthier, more connected?; 2) If not, then "What strategy would most support my lifestyle longevity"? Right-sizing, house-hacking, or reverse mortgage? And 3) "What's the smallest next step I can take today"?
If right-sizing makes sense, maybe you start by calling a Realtor or you walk through an open house in a more walkable area. If house-hacking is an option, maybe you start planning how to configure that basement or ADU for a renter. If you think a reverse mortgage is needed, call a lender who specializes in HECMs and get a quote. Just keeping in mind, you don't have to follow any of these paths to their conclusion. Talking to a Realtor or lender doesn't obligate you to anything. You're just doing your due diligence when you talk to someone who can walk you through those options. So go ahead and take that first small step.
Bottom line, your house is not just the place you hang your hat, it's a tool. And like any tool, its value depends on how you use it. A hammer sitting in a drawer is just a weight, but in the right hands, it builds something. So stop treating your house like a trophy, gathering dust on a shelf. Start using it as the powerful wealth longevity tool that it was meant to be.
And please don't forget, as a Healthspan Realtor and coach, I can help you walk through those options. You'll find a link to my calendar in the show notes. Use that to schedule a free coaching call. We'll look at your unique situation, your physiology, your goals, and we'll figure out the smartest way to turn your home into a longevity multiplier.
That's it for today. Thanks for joining me for another episode of Next Act Ninjas. Please be sure to share today's episode with someone you care about. And until next time, live well, love more, age less, my friends.