Jim, I was considering that but he said that using home equity as part of net worth made it a bad argument because I'm comparing it to stocks. But i can't figure out how saving cash is bad.
Maat, here's an interesting point. I heard Dave Ramsey tell that to a couple who wanted to pay off their home instead of saving for retirement on a show once, flipping through. He was really impressed by their dedication but he said you still have to pay insurance, property taxes, maintenance on the home. So it's not a free home.
The couple said but it's debt. And he said that it real estate still costs money. He's a big real estate fan, by the way, but he was explaining all this crap about houses and depreciation, etc. They wanted to buy a rental after they paid off their home as a retirement investment.
His answer was it's not easy and all this crap about cash on hand and landlording. I was impressed because I thought he'd say great idea it's no debt instead of telling them that RE can be risky. He made a fortune in RE before.
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