Time passes very quickly. I thought I would never make it to retirement yet here I am. Investing for retirement is one way to beat inflation. I would recommend that this girl buy a house though. A house is a very good way to accumulate wealth.
“A house is a very good way to accumulate wealth.”
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Not really. When you allow for all of the carrying costs of home ownership that occur over the years you’ll find that the annualized rate of return isn’t all that great.
I’m not arguing against home ownership mind you, just saying that as an investment, they don’t generate the same kinds of returns that some other investment do.
In short, other investments don’t require a constant outflow of money over many years like homes do. Every home I’ve ever owned (including vacation homes) increased in value but I acquired them as residences of convenience, not as investments. With homes you won’t lose money, but you make a lot either when you look at annualized returns that factor the outflows into the discounted cash flow calculations.