How Much Should I Save for Retirement and a House?

[russ_watters]

One should have learned from one's parents and grandparents..

One other piece of advice. Don't try to get the biggest house that the bank will let you have - they don't care how it will affect your retirement savings or standard of living.

My mother told me it is ok to stretch to buy a house because inflation and normal pay raises will enable you to grow into the payments. Damn her.

 

[turbo]

My mother told me it is ok to stretch to buy a house because inflation and normal pay raises will enable you to grow into the payments. Damn her.

20 years ago, that general advice might have been useful. If you followed that model in the past 8-10 years, you are screwed, especially if you took out a mortgage on that property that you were "sure" was going to appreciate faster than your interest rate and inflation could erode your investment.