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House vs 401k? House vs 401k?

02-25-2015 , 09:16 PM
Quote:
Originally Posted by rockcat
Jfc, diversification. Buying a home is an aspect of diversifying your money. The sooner u own a home the sooner u can retire. Therefore you need to balance retirement nest eggs and home buying.
Great analysis
House vs 401k? Quote
02-25-2015 , 11:09 PM
Quote:
Originally Posted by rockcat
Jfc, diversification. Buying a home is an aspect of diversifying your money. The sooner u own a home the sooner u can retire. Therefore you need to balance retirement nest eggs and home buying.
The sooner you buy a home, the sooner you can retire? I've never seen that in any financial plan.
House vs 401k? Quote
02-26-2015 , 06:39 PM
Quote:
Originally Posted by ChasinScrila
The sooner you buy a home, the sooner you can retire? I've never seen that in any financial plan.
But it is nearly perfect diversification to have far more than your entire net worth tied up in a single leveraged depreciating real estate asset!
House vs 401k? Quote
02-26-2015 , 06:43 PM
Quote:
Originally Posted by ChasinScrila
Contributing $17.5k to his 401k is much different than everything I said.
That's not what I said, either.
House vs 401k? Quote
02-26-2015 , 07:37 PM
Quote:
Originally Posted by BrianTheMick2
But it is nearly perfect diversification to have far more than your entire net worth tied up in a single leveraged depreciating real estate asset!
But you're not paying rent!

Last edited by jjshabado; 02-26-2015 at 07:37 PM. Reason: except to the bank for renting their money...
House vs 401k? Quote
02-27-2015 , 10:35 AM
Quote:
Originally Posted by jjshabado
But you're not throwing money away on rent!
fyp
House vs 401k? Quote
03-01-2015 , 06:35 PM
Quote:
Originally Posted by CohibaBehike
Depending on where you live, buying a home is not the investment it used to be anymore. Back in 1993 my father bought his house for 170k. Today it's worth 550k. Pretty decent ROI. However, if I bought his house today for 550k, it's not going to be worth 1.5 million in 20 years.

I rather take my cash and invest it in the stock market, will likely provide a better ROI.
You have no idea if his house is going to be worth 1.5 million in 20 years...
House vs 401k? Quote
03-02-2015 , 07:55 AM
Quote:
Originally Posted by LimpDitka
You have no idea if his house is going to be worth 1.5 million in 20 years...
You're right of course, but there are some situations where it can be pretty unlikely. In Toronto (which i mention only because it's where I live and what I'm familiar with) some neighborhoods experience tremendous value growth as they gentrify but then level off. For those areas, future value growth in line with past growth would be very unlikely.
House vs 401k? Quote
04-12-2015 , 06:16 PM
If you don't contribute to a Roth IRA and can, you can use it to save for a house.

Putting money I wouldn't have put in there otherwise for house savings. I maxed my wife and my pre-tax deductions (401K, fsa, etc) partly to avoid being phased out.

If I use it, I can take out all contributions with no penalty and leave earnings to grow tax free. If I don't use it, I can leave it in as retirement savings. Pretty much no downside for a little bit of flexibility. $5500 for individual and $11k for a couple, not bad.
House vs 401k? Quote
04-12-2015 , 07:27 PM
It's great, except your time horizon to buy a house is likely to be shorter. Not great to be in the market with money you want to use in the short term
House vs 401k? Quote

      
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