Re: Scary article on retirement planning.

Thus said [EMAIL PROTECTED] (Larisa):
>True, but if you pay a normal 30-year mortgage, you end up paying much
>more in interest (twice as much, no?) than what the house is actually
>worth.

I think you mean "than what you paid for the house."  Your interest
probably will be nowhere near twice as much as what the house is worth
at the end of the 30 year period.

>Even if you pay it off quicker, you still pay much more.  I
>haven't done the math, but wouldn't it be faster to live in a *very*
>cheap room and save up the money for the house, and then, in about 10
>years, pay cash?  That way, compound interest works with you instead
>of against you.

Unfortunately, the after-tax interest you can expect to receive on
your savings is considerably less than the rate at which real estate
generally appreciates, so compounding is working against you in this
case.