Housing Recovery Will Revive Retirement Plans

Reader Comments
Back to blog

Thank God we saved for retirement. We'll barely break even when we sell our home. Hopefully, we'll be in a position to buy a forcelosure home.

Audrey Auernehimer of KS 1:37AM April 08, 2011

The idea that houses should be "investment" that provide a sufficient return to help you retire is an absurdity. It seems that neither the author nor many people considered the idea that someone else needs to get ripped off with an unfairly high price, before you can make big money on your home.
The greater fool theory was fed by realtors and Wall Street banks, and now it has collapsed. Buy a house to live in. Buy one that is within your means. Put the biggest downpayment you can afford, to reduce your monthly payment. That is the wise man's path. Lower home prices are good, not bad. It would be even better if they fell much deeper, as they are still bloated.

Judd Jenkins of CA 1:11AM December 30, 2009

This is one of the ills that has tumbled this economy. People buying McMansions for investment. They created a pyramid scam using white elephant homes which would be passed on to the next greedy flip artist. Currently many of the unemployed tradesman and craftsmen were rushed in to support the unsustainable get rich flip-it market adding to the woes. Truly wealthy don't need to flip the property to retire!
Now consider that many of these same individuals are job gluttons. They simply can't exit the job market due to their spending. Buying that estate required holding on to lucrative jobs that young people would need to advance or enter the work force (adding to underemployment by working 50-60 hour weeks). Jobs that actually can afford to pay a mortgage are clogged with aging boomers who own lots of toys and collectibles that are in the garages and spare bedrooms of these hillbilly heavens, and few, now, are buying the liquidation home and toy box for pennies on the dollar. They "will never get old", or so they think (complain about W St., low min. wage, you finance my children and grand-babies health care and college, me me me)! A lost generation void is created, greedy will not allow passing!
Meanwhile, the conservative, frugal, downsized-slob (not supporting several ex's and the Brady Bunch) is locked out of promotion or employment and accumulates rusty skills, takes a smaller pension, and faces early retirement in an uncertain environment of high taxation and escalating costs. Where prohibitive education costs rule out new/advanced job training options and age discrimination hovers while too few remaining working years swallow training cost re-coop! A lost generation!
All so big shot can have a big house, that now won't sell or needs bail-out. Mid-boomer McMansion has very little nest egg and must sell for savings to cover the utility bills on a retirement cottage. Still Little Bitty you greedy piggy!

Ubiquitous Quip of IN 12:20AM December 17, 2009