Quote:
Originally Posted by Scanner
How can you not label that an asset and just dismiss it from all of your financial planning?
Take away our house and you've taken away 60% of my wealth.
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I'm 43 and our home equity is about 35% of our net worth currently (not counting cars, furniture, jewelry, etc. - just financial assets) and that number continues to fall because our investments grow much faster than our home equity grows. By the time I retire, home equity will probably be a little blip on the net worth chart.
Ok, a house is a tangible item that has monetary value, so it is an asset by that definition. However, including it in your financial planning is a whole different issue. How exactly do you count it in your planning, Scanner? I don't see where it would fit. I can't count it as a retirement asset because I can't spend the value of my home to pay my bills when I stop working unless I borrow against it's value, and then it turns from asset to liability.
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Steve
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