The discussion revolves around personal finance strategies for saving for retirement and purchasing a house. Participants explore how much to save annually for retirement, the importance of prioritizing retirement versus home ownership, and the implications of inflation and investment strategies over a long time horizon.
Participants express a variety of views on the best approach to saving for retirement versus buying a house, with no clear consensus on which should take priority or how much should be saved. There are differing opinions on investment strategies and the reliability of financial products over the long term.
Participants acknowledge the uncertainty surrounding future economic conditions, inflation rates, and investment returns, which complicates long-term financial planning. There are also references to personal circumstances that may affect individual saving strategies.
This discussion may be useful for individuals considering their financial future, particularly those in the early stages of retirement planning or those weighing the decision between investing in a home versus retirement savings.
Astronuc said:One should have learned from one's parents and grandparents..
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.Borg said: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.
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.russ_watters said: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.