Tuesday, September 4, 2007

Rich boomers banking on homes to fund retirement


...this is not news to financial advisors...


NEW YORK — Affluent baby boomers may be relying too heavily on their homes to fund their retirements, according to the results of a new survey...

...68% of affluent baby boomers were counting on their personal residences as retirement assets. Of those, 24% said their homes represented half or more of their retirement savings.

Additionally, I recently saw a study, and I will post numbers if I can find them, that home improvements, once you back out all the costs associated with owning a home including property taxes; real rate of return is about 1%.

1 comment:

Bike Bubba said...

I remember reminding my pastor that the home isn't an investment unless you're willing to sell it--and he appears to be in that mode. I also remember a BBQ place that had home prices from the 1940s in old newspapers on the tables, and an analysis of the prices (as well as that my grandpa paid for his home in 1940) confirms what you say. Housing is not that good of an investment because it's an intrinsically unproductive asset.