Planning your retirement strategy around your home could be a huge mistake. I think I've probably touched on this in the past...but I keep reading about how great it is to own your own home that I can't resist bringing it up again.
If I were planning retirement strategy, I think I'd start with the basics...insurance, 6 months worth of income in a savings account, yada yada, yada. I know that's not how most people approach it, but I still think getting back to basics is a good idea. But not everyone listens to me.
That's why I want to talk about someone else's blog today - momentarily. I want you to meet the "mommy millionaire next door". She seems like a nice gal, and We've traded a few emails (or at least one that I can recall off the top of my head)...
...anyway, she's posted something interesting on her blog. It sounds more like a personal experiment than something she advocates for everyone but I'll let her do the explaining from here on out:
Whether you pay mortgage payments to the bank or rent payments to your landlord, you are paying for SHELTER. Contrary to what most people used to believe (but now we know better, right?), homes do NOT always go up in value. Your home is your shelter — not an investment. Often it is less expensive to rent a home than to buy one. Consider renting and investing your down payment savings and your monthly savings into income-producing real estate, businesses, stocks and bonds, your education, etc. instead. You will often come out ahead financially in the long run.