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There are some retirees whose financial plan assumes that their house (the majority of their net worth) does not decrease in market value and that insurance wil
by supertrope 1y ago
There are some retirees whose financial plan assumes that their house (the majority of their net worth) does not decrease in market value and that insurance will pay for hurricane damage. The recent condo market slump is the canary in the coal mine.
- lcnPylGDnU4H9OF 1y ago> financial plan assumes that their house (the majority of their net worth) does not decrease in market value What is this plan? (Genuinely asking because it doesn't make sense to me.) If my (paid-off) house decreases in market value, I'm pretty sure I'm just happy because my property taxes are lower. It's not like I'm expecting to profit from its price going up, literally ever; I still need a place to live and if housing prices are going up everywhere, then selling my house means I now have the purchasing power to buy ~one house. At best, I have a larger credit amount in a HELOC but I still have to pay that off so it's not really a "financial plan".
- supertrope 1y agoNo rent to pay. If needed sell the house to pay for medical care or nursing home care. If the price goes up sell it and move or Florida or a LCOL area.
- foxyv 1y agoI think the usual plan is to sell it and do like they are saying in this article. Rent a place in a cheap retirement area or live aboard a boat or something. Typical retirement stuff. What happened with my parents was the 2008 crash wiped out a lot of their retirement plans because all their investments were in real estate.