The Motley Fool Discussion Boards

Previous Page

Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Possibly the worst retirement investment Date:  5/20/2013  8:52 PM
Author:  aj485 Number:  307042 of 310160

Wow, you read a lot more into that article than I did. What I saw was that there are issues with tapping retirement accounts and life insurance (presumably whole life, since it's 'tappable'). And I also saw some risks pointed out that are unique to real estate. But I also missed anyone pointing out the risks of any other investments that could be substitutes. There is no such thing as a 'safe' investment. Even CDs have inflation risk, so while you may not lose your principal, when you get it and the interest back, it's not going to purchase as much as it did when you invested. And putting your money under your mattress, or burying it in your backyard is even worse than a CD paying paltry interest, because the money under the mattress pays no interest and has risk of theft or loss in a disaster besides.

A lot of condo groups and HOAs put restrictions on rentals.

If someone is getting a mortgage to purchase a condo/townhome, there are actually more restrictions than just the HOA/condo group restrictions. FHA also requires condo/townhome projects to be qualified, meaning that they must have at least 50% owner occupants, no entity/investor can own more than 10% of a complex, and no more than 20% of the HOA members can be delinquent on their fees, among other requirements. And you generally can't get a conforming or FHA mortgage (90%+ of the current mortgage market) for a condo at all if the condo complex isn't