Quote:
Originally Posted by vintageogauge
I have to assume that your young friends already own a home as if they do not and have to rent, that investment income is pretty much used up and they lose the potential appreciation in a new home. If they already own a home that they are happy with I would agree that making their money work for them in this environment is a good thing.
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Yes. They own their homes free and clear or are sitting cozy with a 2.5 % mortgage. When they reach 59 1/2 yrs old, instead of spending their lump sum distributions on the purchase of a new home, they invest the money to make income. By staying in their home, they also avoid higher property taxes and insurance.