Quote:
Originally Posted by POS
I think that if your house has $300k in equity, then you can book that $300k as part of your assets; ignoring that doesn't make any sense to me.
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Yes it part of your assets. No question about that. Just take it one step further.
However, let's say hypothetically, that that is all you own. When you retire with $300k in equity. How will you eat? You can't eat equity.
My point is you will have to convert some or all of your equity into an income producing asset. You will have to :
-sell the house to get the $300k OR
-start renting rooms in the house for income
Think it through and you will see why people with big homes (and small savings accounts) downsize.