I think this is good. A lot of retirement problems need to be thought of as scenarios. Examples are downsizing a home, which increases the portfolio value but also affects expenses on whatever the replacement living situation is. Buying an annuity decreases the portfolio and also decreases the amount that needs to be withdrawn annually. Expectation of an inheritance falls in a similar category.Depends on what you plan to do with it. If you plan to keep it in retirement, it's an income stream that reduces what you take from the stocks and bonds.
If you plan to sell it, it will eventually be part of your AA.
If you are trying to figure out if you have enough to retire, you could include the value you expect to get from the property as part of what you will spend in retirement.
I would think it might be tricky to figure out how to ascertain the income stream from a real estate holding, but I don't own real estate and don't think about what sort of cash flows are involved. I do own a home and it does have expenses and it does have a potential of being sold sometime in the future, at which point the portfolio will get larger, home owning expenses will go away, and expenses of the replacement shelter will start.
Statistics: Posted by dbr — Thu Jul 11, 2024 8:31 am — Replies 13 — Views 618
