Your real estate example is one of the reasons I’m still a renter.
amanda w.
33

I don’t *exactly* disagree with Memphis Blues, but there is something to remember:

once you have a paid off property (or, really, any equity at all), you’ve essentially allocated the value of the house as a large, illiquid, investment that cost money to maintain and is taxed annually, regardless of its “investment performance”. So, as part of a diversified ‘investment portfolio’, owning real estate may or may not be a good allocation decision.

That said, no matter how big, you can’t live in a stock portfolio.

I think that my family is over-allocated to real estate, while still having a mortgage, but what are you going to do? We’re nor the long-term renter sorts, for a bunch of reasons.