Re: Scary article on retirement planning.

"SoCalMike" <[EMAIL PROTECTED]> wrote in message news:<[EMAIL PROTECTED]>...
> >
> > Renting has its own set of risks.  If inflation takes off, what happens
> > to your rent?
> 
> rent goes up regardless, about 5% a year. good times, or bad. ive never
> heard of rent going *down*
> 
> >What happens to your mortgage?  A mortgage is an automatic
> > portfolio diversification (which is a good thing over the last few years
> > of stock market and interest rate declines).  A paid off mortgage is good
> > security against the many economic risks that are out there.  You can live
> > very cheaply if need be when you don't have to pay the mortgage/rent.  You
> > won't have a paid off mortgage ever is you rent all of the time.
> 
> suze ormand was saying the best thing you could do when given the choice
> between investing in a 401k, and paying down a mortgage, is paying the
> mortgage even if it means not having the small tax break anymore. because
> uncle sam wont let you move in with him.


Yes, the reality is that you need some place to live.  Renting 
makes sense if you think you might not stay in an area for long, but
otherwise probably not.  Diversification is important though, so I
wouldn't put everything into paying down the mortgage.  I split what
extra money I have between long-term savings and paying down the
mortgage.

-Tom