Terry Savage argues that if you have too much capital gains in your home that exceed what the generous tax-free clause offers ($250,000 for an individual and $500,000 for a couple if you meet certain conditions), you may want to take out a reverse mortgage. Unfortunately, this is not a sound suggestion. Reverse mortgage usually carries astounding price tag in terms of closing cost or "hidden fees." A better option for home-equity millionaires is to take out a standard home equity loan or home equity line of credit (HELOC).

If you're like many Americans, your house is your largest single asset, and it's been appreciating at a rate that probably outstrips your investment portfolio. In fact, your home might represent a good portion of your retirement fund. But, can you afford to sell, and then retire?

You can no longer be certain that you can avoid capital-gains tax when you sell a house and move. Under the current rules, every time you sell your house, you could owe taxes. Single filers can exclude $250,000 of gains on every sale, and married taxpayers filing jointly can exclude $500,000. You can take that deal every two years.

But what about those who stayed put for many years and watched their homes soar in value? Even a million-dollar profit dwindles when a single person can exclude only $250,000 of gain. And depending on where you live, you might also owe state and local taxes.