4 ms·

I would strengthen your statement to say that almost everyone can't afford it. Median household income is around $67K in the US, and the median household assets

I would strengthen your statement to say that almost everyone can't afford it. Median household income is around $67K in the US, and the median household assets (minus the house) at age 65-69 is $75K. So even if a third of your income is being replaced by social security, a typical household has not even two years of income saved. A 25th percentile household has less than 5 months! Most people save basically nothing, on net. Even 75th percentile households only have 4 years of income. Assuming reasonable investment returns, that's only saving 2.5% on average. Pensions aren't expensive, retirement is expensive! People, even ones who can easily afford it, often won't save. https://dqydj.com/household-income-percentile-calculator/ https://dqydj.com/household-income-percentile-calculator/ https://dqydj.com/average-median-top-net-worth-percentiles-by-age/ https://dqydj.com/average-median-top-net-worth-percentiles-b...

legitster 4y ago
> median household assets (minus the house) at age 65-69 is $75K Why would you take out the house? For most people that's a key part of their retirement. Going into retirement as a renter or with a $500k home paid outright is one of the biggest difference makers.
- icedchai 4y ago
  Selling your house takes time. In a bad economy, it could take a lot of time. Knowing your "liquid" net worth has some value.
  - RexM 4y ago
    But if you own your home you don’t have to worry about paying for a place to live (taxes aside.) I do see how knowing what your liquid net worth is has some value, but knowing your expenses has value, too.
    - icedchai 4y ago
      True. Taxes and utilities do add up. Some neighborhoods also have HOA fees. A lot of people are living month-to-month on their paycheck, so expense is key. Note: I own my home outright. I bought it in 2000, before the real estate bubble really took off, had a 15 year mortgage, paid it off early.
- refurb 4y ago
  Right, but that $500k is tied up in your housing, so not really accessible. I wouldn’t discount it entirely, but home equity should clearly be evaluated differently than cash in the bank.

legitster 4y ago

> median household assets (minus the house) at age 65-69 is $75K Why would you take out the house? For most people that's a key part of their retirement. Going into retirement as a renter or with a $500k home paid outright is one of the biggest difference makers.

icedchai 4y ago
Selling your house takes time. In a bad economy, it could take a lot of time. Knowing your "liquid" net worth has some value.
- RexM 4y ago
  But if you own your home you don’t have to worry about paying for a place to live (taxes aside.) I do see how knowing what your liquid net worth is has some value, but knowing your expenses has value, too.
  - icedchai 4y ago
    True. Taxes and utilities do add up. Some neighborhoods also have HOA fees. A lot of people are living month-to-month on their paycheck, so expense is key. Note: I own my home outright. I bought it in 2000, before the real estate bubble really took off, had a 15 year mortgage, paid it off early.
refurb 4y ago
Right, but that $500k is tied up in your housing, so not really accessible. I wouldn’t discount it entirely, but home equity should clearly be evaluated differently than cash in the bank.