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Well the thing is, even if the value of your house tanks, you still have something. You have a house you can live in. If the value of your stocks tank, you hav
by umvi 7y ago
Well the thing is, even if the value of your house tanks, you still have something. You have a house you can live in.
If the value of your stocks tank, you have nothing to show for it...
- the_gastropod 7y agoWell, you have dividends, which presumably can help pay for some of your (likely now lowered) rent?
- rainyMammoth 7y agoThis is a fallacy. The chances that an index fund goes to 5 or 10% of today's value is way lower than the probability your home going to zero. There are plenty of catastrophic events all over the country that happen periodically (fire, tornadoes, flooding,... you also seem to forget that in order to Have your home you still need to pay for HOA, maintenance and... property taxes.
- mrep 7y agoThat's why you get home owners insurance.
- rainyMammoth 7y agoAnd the exact same type of assurance exists for Stocks. It is called hedging your bets.
- closeparen 7y agoThat benefit is just like any other investment income. Lots of financial products have a payout irrespective of their market value. Some countries even treat "you can live in your house" the same as e.g. dividend income by taxing imputed rent.