"it wasn't possible for working people back then to save up that kind of money -- but the people who made a point to pay off their homes."--pekinrobinPR, I agree generally with your post. Building equity in your home is certainly good as part of a retirement plan. And real estate these days is doing very well. So its a great investment. And not a bad way to diversify.But something else to consider is the times. I'm not sure how old you are, but there was a generation who could expect to retire on solid pension plans. I think those days are gone for many. Boomers are the first to have 401Ks and IRAs to retire on. And because pension plans are going away, many are forced to rely on those. But the next generation with defined contribution plans instead of defined benefit plans will likely be in trouble--especially if they fail to fund their 401K plans.So, I think you comments are excellent for those with solid pension plans. For those without them, savings rate and maxing the 401K becomes very important. If they don't do that, they may not be able to retire. 25% may be a stretch for many, but how about 15% or 20%. They should do as much as they can manage.
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