An Alternative Asset to Buffer Sequence-of-Return Risk in Retirement

This paper introduces academic research suggesting ways to manage sequence-of-return risk via an “existing resource,” the house. This review will lead to an evolving discussion of housing wealth used as an “alternative buffer asset.” It is hoped that this introduction will spur further papers on the synergistic potential the home asset can provide in preserving terminal portfolio value (TPV) and net residual wealth inclusive of home equity. The paper also features a case study by Barry H. Sacks, J.D., Ph.D., a practicing tax attorney in San Francisco, CA, which illustrates how a securities portfolio (such as a 401(k) account or a rollover IRA) that provides retirement income can be substantially helped by a reverse mortgage credit line