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You don't need to put $33k/year into a retirement savings account if you're already buying $20k/year worth of house. This is false. Your house is not consumabl

You don't need to put $33k/year into a retirement savings account if you're already buying $20k/year worth of house. This is false. Your house is not consumable in retirement, so you can't really count it as retirement savings. At best, you would be able to downsize. That would extract some portion of the value of the home in order to maintain you through retirement. But you certainly can't count the whole house value as retirement savings.

Retric 16y ago
Reverse mortgage: http://en.wikipedia.org/wiki/Reverse_mortgage http://en.wikipedia.org/wiki/Reverse_mortgage Anyway, over the long term (30+ years) inflation is going to increase the value of a home. Suggesting that a 750K house in a good location gains ~2% of it's value on average per year seems like a safe bet in most areas. Granted, it is a risky investment, but so is buying stocks. Anyway, 20% down + a sane 30 year mortgage on a 750K home really is a fairly large investment. If nothing else at some point they don't have a morgage anymore. Edit: The point being they could probably be safe only saving say 10% for retirement (25K) and put 8k/year into some other use. They are getting close to the point where they could probably swing a live in housekeeper. (Lunches at work 5k, Day care and Babysitting 15K, Cleaning 5K. Dry Cleaning 1.2K + 8k less savings) = 34.2K / year. They could even cut into that 13,659 /year in Food and household supplies...