Confessions of one sahm

iVillage Member
Registered: 01-09-2009
Confessions of one sahm
3365
Fri, 04-03-2009 - 1:58pm

I've been thinking about this *debate* lately, and I think that many of my

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Ducky

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iVillage Member
Registered: 01-08-2009
Sun, 07-05-2009 - 6:04pm
I don't see anything to debate in "could be." Anything at all "could be" your largest asset. So what?
iVillage Member
Registered: 06-27-1998
Sun, 07-05-2009 - 6:08pm

Good point, it could be and I guess for a good

PumpkinAngel

iVillage Member
Registered: 05-13-2009
Sun, 07-05-2009 - 6:14pm

I'm missing the point here too. My parents were renters; and my dad who is still alive is still a renter. He has a pension, an annuity, social security and he lives very comfortably.

Since I will only have a very small pension, and I don't want to count on ss, I will have much more saved for retirement than my parents with hopefully a comparable standard of living.

iVillage Member
Registered: 01-08-2009
Sun, 07-05-2009 - 6:19pm
Yeah, from an accounting standpoint, what you owe on the home is not an asset, it is a liability, right?
iVillage Member
Registered: 02-07-2009
Sun, 07-05-2009 - 6:39pm

Actually that is not true either.

No one will ever know the true value of their home until they actually sell and find out what someone will pay for it until then any equity they have in the home means nothing. A lot of people are finding that out now.

iVillage Member
Registered: 03-26-2009
Sun, 07-05-2009 - 6:54pm

Scenario A-house worth $600,000, has $100,000 saved up for retirement, decides to move, sells home, profits $575,000 + $100,000 saved. Total for retirement-$675,000.


Scenario B-house worth $150,000, has $100,000 saved up for retirement, decides to move, sells home, profits $125,000 + $100,000 saved. Total for retirement-$225,000.


If you ARE using your home as part of retirement, it all depends on how much it is worth.


iVillage Member
Registered: 03-26-2009
Sun, 07-05-2009 - 6:56pm

How does the value of your home effect your retirement savings if you don't plan to sell?


Sigh...it doesn't, I wasn't the one who originally said it.

iVillage Member
Registered: 03-26-2009
Sun, 07-05-2009 - 6:57pm
IME, by retirement, most people's home are paid for.
iVillage Member
Registered: 01-08-2009
Sun, 07-05-2009 - 6:58pm

No, it depends on your total assets, not how much any one asset is worth.

SCENARIO C: House worth 300K, 4 million saved up for retirement. Almost irrelevant whether house is sold or not.

SCENARIO D: No house, but 4 million in retirement savings/investments.

iVillage Member
Registered: 03-26-2009
Sun, 07-05-2009 - 6:59pm

See Amilla's post. I am trying to see how a renter would figure out their retirement if you go by the amount your house is worth-lol!!

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