I agree. Home ownership is the best form of savings available. Average return on investment averages 17% per annnum. What bank will give you that?
Moveover, are they taking into account pensions, 401k's, IRA's and stock portfolios? I think not.
I think a more valuable assessment would be changes in average American net worth, taking into account adjustments for inflation.
Sounds good.
Hmm, and what if the prices of homes go down?
Yeah, BUT isn't it considered BAD that people are mortgaging their homes and have little equity and are at the mercy of continuing home appreciation which we all know wages cannot sustain?
Something tells me cold cash and gold is going to be the only thing worth holding.
Source for that? Over how long a period of time? In which market? For which type of houses--tract, or custom?
I don't disagree that a home is a great investment, but 17% is stretching it. Not everyone is going to realize that kind of appreciation. Besides, it's better to diversify IMO, and have some savings in equity investments too.
You are correct. They are not taking into account these types of savings accounts. Consequently, their entire argument is bogus. My wife & I have $600,000 in a 401k. We do have an emergency "savings" account, but we pour all we can into the 401k. It's a great investment because of the tax savings, employer match, etc. Whoever keeps writing articles like this is living in the 50's.