Fewer FIREd Folks

[omni550]

From today's NYT, " “The fact of the matter is that this aging-but-not-yet-aged segment of the baby boomer class can’t afford to retire,” said David A. Rosenberg, the chief economist of Gluskin Sheff, a Canadian firm, noting that overall household net worth was 15 percent lower than at the prerecession peak. “Dreams of the 5,000-square-foot McMansion being a viable retirement asset have morphed into nightmares of a deflationary ball and chain.” "

http://www.nytimes.com/2012/05/19/bu...it_th_20120519

omni

[marko]

Quote:

Originally Posted by omni550 From today's NYT, " “Dreams of the 5,000-square-foot McMansion being a viable retirement asset have morphed into nightmares of a deflationary ball and chain.” "

My dear old grandad told me fifty years ago: "When you start to view the house you live in as an investment you're headed for trouble."

[obgyn65]

A colleage of mine is trying to sell her house. The house has lost 30% of its value since 2008. Her children are gone, and she lives on her own, but real estates taxes are now close to 10k (and another 10% increase is yet to come). She maybe an example of many people who have realized their house has become a financial trap.

Quote:

Originally Posted by omni550 From today's NYT, " “The fact of the matter is that this aging-but-not-yet-aged segment of the baby boomer class can’t afford to retire,” said David A. Rosenberg, the chief economist of Gluskin Sheff, a Canadian firm, noting that overall household net worth was 15 percent lower than at the prerecession peak. “Dreams of the 5,000-square-foot McMansion being a viable retirement asset have morphed into nightmares of a deflationary ball and chain.” " http://www.nytimes.com/2012/05/19/bu...it_th_20120519 omni

[Chuckanut]

The more I read articles like this more I wonder what happened to that age old concept of diversification in investing.