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September 13, 2010

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This is list does appear to have some very obvious points. That said, I took interest in "Renting may beat buying". It's not something that was being confidently stated just a few years ago. People were clamoring to get the "American Dream" of home ownership, and others were trying to upgrade. Who wanted to rent?

Now, who was smart, in retrospect? Some homowners lost a lot of money. Clearly, if someone had rented over the last few years, they would have come out ahead - far ahead in some cases.

Don't get me wrong - I'm Not saying renting is better than buying over the long-term, as I definitely believe in homeownership for many of the same tried and true reasons that people have for years. The difference is, the element of fsst price appreciation and quick resale is not in the mix anymore.

Considering Roth IRA's is "new"? Seems to me that the financial guru's and press have been talking about those almost incessantly for several years.

I just want to pipe in...I currently pay 1500 per month to rent two floors of a three story house. I also have a basement, attic, and driveway. I was thinking earlier this week, 'Gee, owning a house would be awesome. How much house could I get for 1500?' According to the online calculators, about $250K. I live in the burbs of Boston. That would buy me a shed and outhouse that would still probably depreciate in the next 3 years.

Ah well. In my case, renting is the way to go.

Not anything new except changing words. Items I don't understand

•Personalize your emergency fund. "just what do they mean "Personalized"?"
•Think McCottage, not McMansion. "McNope. Think McMortgage McGoAway, all ready have McCottage type house"
•Age 66 is the magic number "Who knows that is 18 years away, alot can change in even just 2 years just like the past 2 years"
Lock in your retirement income "How? me smell anuity which stink"

Actually, for the money-wise, many of these rules aren't new. What is new is that the newly-frugal are discovering them!

@Matt: Yeah, you'll have to look through the article itself for the details.

I agree with everyone else. Not much new here. "Think single-digit returns" has always been my mantra. My savings plan calculations never go above 8%. Unfortunately, I hate how everyone thinks that 10% return is, all of a sudden, unrealistic. Yeah, we're going through bad times, but 10% is still very possible if you have 15-20 or more years.

Not much new here at all.

@Todd, I agree with you completely regarding the rent vs. own. I pay rent of $1,500/mo. I have 3 large bedrooms, a laundry room, a garage and a driveway, a big backyard and frontyard. I would not be able to have that type of house where I live for the same price. To get the same set up via homeownership, I, too, would be in a almost run-down house or a fixer upper. ...and then to add property taxes to boot and all the other expenses. No thanks. I'll keep renting for now. Perhaps moving to a cheaper area, yes. However, I have no immediate plans to move in the near future.

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