[maat55]

Originally Posted by Scanner

Or rent. If I sell my house for $350,000, and since it's my primary residence I escape capital gains tax, and now I rent an apt. for $500/month splitting it with a roommate, I have made $349,500 from the sale of said asset.

On the stock though, I absolutely have capital gains tax (15%, I think).

I must confess, I can't recall if the capital gains tax only is exempt if you buy an asset worth more (remain upwardly mobile).



I count it as part of my "net worth" goals.

I can also benefit in retirement from my home in 2 different ways:

1. Reverse mortgage.

or

2. (my preference) Sell it to an investor with an agreement to lease back. The asset is then "pre-liquidated" for probate when I pass away.

I then have $350,000 in the bank earning interest and a bonafide agreement to remain in the home and escape taxes, repairs, etc.

Really, I know the spirt of what you are saying, DisneySteve - you and JimOhio are on such a track that your home will probably be somewhere around 5% of your net worth.

For the average American, who has a small pension and a few thousand stashed away, I don't know how you can just pencil off your home on your net worth statement.

The whole point is that you need to not consider it part of your net worth or a retirement asset, unless you intend to downsize drastically. It's a place to sleep. A reverse mortgage,hmm, lots of ripoff fees there, I don't like bankers enough to give them the pleasure.