For those of you mapping out your retirement, how are you handling home equity?
I would think it'd be a wash if you plan to stay in your current home, but maybe I've got a skewed perspective in that I think most people would downsize and/or live somewhere cheaper. Given I don't want to own a home when I'm retired, I'm thinking I should be counting equity. Then again, I guess that means I'd also have a rent payment.
You can't really use it in online calculators because it applies the growth rate to all assets - the stock market isn't gonna do the same thing as the housing market. Maybe just count it as a free year or two of income but leave it out otherwise?
I would think it'd be a wash if you plan to stay in your current home, but maybe I've got a skewed perspective in that I think most people would downsize and/or live somewhere cheaper. Given I don't want to own a home when I'm retired, I'm thinking I should be counting equity. Then again, I guess that means I'd also have a rent payment.
You can't really use it in online calculators because it applies the growth rate to all assets - the stock market isn't gonna do the same thing as the housing market. Maybe just count it as a free year or two of income but leave it out otherwise?
'76 911S | '14 328xi | '17 GTI | In memoriam: '08 848, '85 944
"Here, at last, is the cure for texting while driving. The millions of deaths which occur every year due to the iPhone’s ability to stream the Kim K/Ray-J video in 4G could all be avoided, every last one of them, if the government issued everyone a Seventies 911 and made sure they always left the house five minutes later than they’d wanted to. It would help if it could be made to rain as well. Full attention on the road. Guaranteed." -Jack Baruth
"Here, at last, is the cure for texting while driving. The millions of deaths which occur every year due to the iPhone’s ability to stream the Kim K/Ray-J video in 4G could all be avoided, every last one of them, if the government issued everyone a Seventies 911 and made sure they always left the house five minutes later than they’d wanted to. It would help if it could be made to rain as well. Full attention on the road. Guaranteed." -Jack Baruth