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URL:  https://boards.fool.com/quotwhile-he-cant-count-the-residence-as-part-18990054.aspx

Subject:  Re: The hocus plan: 4% from 100% FI? Date:  5/1/2003  9:50 PM
Author:  Hyperborea Number:  105074 of 881154

"While he can't count the residence as part of the assets from which he makes a withdrawal, it is an asset of which the value varies with inflation. And it can be liquified later in life through any one of many strategies like downsizing, reverse mortgage, etc ..."
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Isn't it 'liquefied' every month he doesn't have to pay rent?


You could certainly set the "books" up to show the phantom "income" from the home but you would also need the phantom "costs" of the phantom "rent". They would balance out and leave no net change. If I needed $30K per annum and my home was providing $1K / month in phantom "income" then I also had $1K / month in phantom "rent" and so I still needed $30K / annum.

Hyperborea
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