Washington Post: Homeownership Is A Possible Route For Retirement
In a recent column from The Washington Post, one columnist highlighted a question from a curious reader who wondered if purchasing a home would have been better than saving money in a 401(k). Michelle Singletary sought the answer from financial planners who do in fact encourage home buying as an option to bolster funds for the future.
“In general, if someone plans to live in a place for a very long time, and loves the area, we do encourage a home purchase, but not because it could be a good investment,” said Carolyn McClanahan, a physician-turned-certified financial planner who founded the fee-only Life Planning Partners, based in Jacksonville, Fla, according to The Washington Post.
“We encourage it because it is a way to reduce future housing costs when the home is totally paid off or builds equity for the next home purchase. If you need flexibility to move, renting is a better option. If you are lucky, you’ll make money on your home purchase and have a bigger nest egg."
Singletary's column also mentions reverse mortgages as an option, though, she cautions readers that it isn't for everyone.
To read more from Singletary's deep dive into exploring retirement options beyond a 401(k), click on the image above.