Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Calm down man, it's Friday. I'm allowed to have an opinon.
So you have $830,000 tied up in your house and car - interesting. I've got $120,000 tied up in mine.
More than one way to do it!
I’m calm as I don’t fear folks on CD having some arbitrary asset values as a risk because it’s not. I have more than one car but that’s a bit irrelevant as is the dollar values of them and my house but it was rather a point that some of this is public data, with my actual personal information, available to people close to my vicinity and it doesn’t do anything. This is the case all over tue country and Bezos is fine somehow. It’s all being worried about nothing
Wow, I started this thread almost 12 years ago! Apparently, I had $130,000 saved back then, which seems surprising. Twelve years later, I'm at $934,000, give or take. Just goes to show how quickly it piles up.
It does when it gets to a certain point. It's exponential to an extent.
The sad part.. I don't know how much I have myself. I know ballpark it's around $200k, but it's in two different 401k's and an IRA.. I don't look at them more than once a year or so. Just out of self preservation. You follow it every day you'll drive yourself crazy.
Calm down man, it's Friday. I'm allowed to have an opinon.
So you have $830,000 tied up in your house and car - interesting. I've got $120,000 tied up in mine.
More than one way to do it!
Tied up is an interesting way to put it. Is it really tied up if it's appreciation? My house is long paid off and has more than doubled in value since I bought it, which is ridiculous, but that's another thread all together. I don't consider potential profit should I choose to sell to be tied up. What exactly am I tying it up from? I also don't include the market value of my primary housing in calculating my net worth. Do you?
Tied up is an interesting way to put it. Is it really tied up if it's appreciation? My house is long paid off and has more than doubled in value since I bought it, which is ridiculous, but that's another thread all together. I don't consider potential profit should I choose to sell to be tied up. What exactly am I tying it up from? I also don't include the market value of my primary housing in calculating my net worth. Do you?
I've never really thought about my net worth.
And yeah..... I would consider having $750,000 for his housing to be 'tied up' because that's not liquid money - he doesn't have access to it immediately....hell he could probably downsize to much smaller house and put the rest of the money to work investing, or spend it on....whatever he wants. But a lot of people like a big house for whatever reason.
And yeah..... I would consider having $750,000 for his housing to be 'tied up' because that's not liquid money - he doesn't have access to it immediately....hell he could probably downsize to much smaller house and put the rest of the money to work investing, or spend it on....whatever he wants. But a lot of people like a big house for whatever reason.
Depending on where you live, a $750k house might not be nearly as impressive as you imagine. And you don't know what he paid for the property. I paid a little over $200k for my house and eventually paid off the mortgage just by making regular payments. You wouldn't consider it extravagant, I promise, but it has a market value of ~$600k now. It's a small house with nothing special about, but it happens to be in a very nice part of town with an outstanding elementary school in an excellent school district. I had no idea when I bought it that it would end up this way.
So is that $600k really tied up? It's funny money until I sell, which I have no plans to do. The only money I have "tied up" is the $200k I spent to purchase it plus what I've spent on maintenance, but that's what we do when we purchase property to live in. Over time, we pay it off.
The car? Well, I have no idea what the case is there. Some people just like really nice cars.
We all have a contentment curve. I see no reason to downsize if one's retirement savings are on track. Maybe his are even with the house and the car.
And yeah..... I would consider having $750,000 for his housing to be 'tied up' because that's not liquid money - he doesn't have access to it immediately....hell he could probably downsize to much smaller house and put the rest of the money to work investing, or spend it on....whatever he wants. But a lot of people like a big house for whatever reason.
If you want to put the money to work, you can just take out the money through a mortgage and invest it.
Also, it is a place to live so it isnt just about maximizing return on investment. You want to get a home you are happy with (and can afford). $750k isnt much of a home in my town. If you want to keep up with the Jones' family, you need to do better.
If you want to put the money to work, you can just take out the money through a mortgage and invest it.
Also, it is a place to live so it isnt just about maximizing return on investment. You want to get a home you are happy with (and can afford). $750k isnt much of a home in my town. If you want to keep up with the Jones' family, you need to do better.
the thing is most are not going to remortgage a house and invest it in the stock market
Tied up is an interesting way to put it. Is it really tied up if it's appreciation? My house is long paid off and has more than doubled in value since I bought it, which is ridiculous, but that's another thread all together. I don't consider potential profit should I choose to sell to be tied up. What exactly am I tying it up from? I also don't include the market value of my primary housing in calculating my net worth. Do you?
you cant access your own money without costly loans .
also today you need the same income and credit criteria to refi as you do to take a mortgage .
that can be a problem for some .
plus we saw credit lines closed in 2008 just as many needed to access that money .
so yeah , for the most part it is not easily accessible and there may be some that cant get to it at all without a costly reverse mortgage.
your house also is not going to be part of the income generation pool in retirement either .
you cant rebalance the living room or sell off the hallway , so a home may be more an expense cutting tool then an income generator as long as you consume it yourself.
Last edited by mathjak107; 11-20-2021 at 04:25 AM..
the thing is most are not going to remortgage a house and invest it in the stock market
I agree but he seems to have an issue with tying money up in a house, so the option is there.
He does seem to consider that the $750k house is paid off thus tying up that $750k where in most circumstances the money actually tied up would only be the downpayment and any principle paid on the mortgage.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
