Originally Posted by 3 Yrs to Go
I guess when you make a whole host of unfounded assumptions, sure.
Hmm...you know I was hoping this was over, but jeez louise...I covered practically everything you brought up, almost nothing you mention is factual in the scenario I laid out. You just arent reading this stuff, you just want a diatribe.
So having said that, I regret ceding the irrelevant points to get to the meat of the matter.
The OP asked "should I consider home equity as the bond in my asset allocation"
The answer is ABSOLUTELY.
You hold bonds for 'sleep at night' factor emotionally, income and low volatility financially.
100% home equity solves all of those problems.
My sleep at night factor in having full home equity far surpasses the emotional benefit of owning a bunch of bonds. And you cant live in a bond.
I avoid a lot of spending need, reducing my need for income, reducing my need for reduced volatility, and can mortgage, heloc, reverse mortgage, rent part, rent all, or charge people to pitch pup tents in the back yard. In that manner, once we stop confusing the HOME with the PROPERTIES FINANCIAL CHARACTERISTICS, we see that it is a stable source of capital value, can produce income, and is a volatility reducer.
So its function is exactly the same as a bond as part of a full financial plan.
As far as every other comment you made, I addressed those already, so you'll have to scroll back and read those.
Its my opinion that you're more interested in an argument than being open minded and exploring different ways to structure ones financial scenario.
While I enjoy a good argument, this isn't one of those. Its a lot more fun to dispute valid points than to discuss something with someone who has their fingers in their ears while mumbling 'la la la la la' and periodically yells "does not!". :