Wealth manager: Buying a home is 'usually a terrible investment'—here's why via CNBCMakeIt
A lot of people will tell you that buying a home is a good investment, but"that couldn't be further from the truth," says Peter Mallouk, a certified financial planner and president of wealth management firm Creative Planning.
Over time, your home might increase in value, Mallouk says, but it probably won't appreciate enough to offset all of the costs. Instead, if you took what you'd save from not buying a house and invested it in something that's likely to grow in value, such as stocks and bonds, chances are you'd end up with more money in the long term.
Ramit Sethi, self-made millionaire and author of "I Will Teach You to be Rich," has made the same argument. Think about it this way, Sethi suggests:"Generally we can assume that over the long term, if we invest in a low-cost diversified index fund, we get about 7%" in terms of annualized returns.
"For the biggest purchase of your life," he adds,"you should know all the math and how it plays out 20 years in the future."
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wealth manager: Buying a home is usually a terrible investment'A lot of people will tell you that buying a home is a good investment and that couldn't be further from the truth,' says certified financial planner Peter Mallouk.
Read more »
Kevin O'Leary: Don't make this home-buying mistake, even when mortgage rates are lowKevin O'Leary: Don't make this home-buying mistake, even when mortgage rates are low via CNBCMakeIt
Read more »
Canopy Growth isn’t buying Acreage Holdings, it’s buying the right to buy Acreage HoldingsCanopy Growth Corp. is not outright acquiring Acreage Holdings Inc., as reports said Wednesday, but it is preparing to pay billions for the rights to buy the...
Read more »
The Family 401(k): Teaching Kids And Grandkids How To Build WealthMany people are trying to get to retirement, but are you instilling these values in the next generation? Read here to see how you might help set them up for retirement success!
Read more »
Breakingviews TV: Wealth hedgeMorgan Stanley capped a weak earnings season for investment banks. James Gorman’s shop suffered a bigger slump in core advising and underwriting than peers, but John Foley says a humming wealth-management arm helped it deliver a better return on...
Read more »
Morgan Stanley leans on wealth management to beat estimatesMorgan Stanley reported a 9 percent drop in quarterly earnings on Wednesday, but...
Read more »
Goldman’s digital product Marcus is eyeing a wealth service for the US' affluent populationGoldman Sachs is developing an investment platform that will be offered via its digital offshoot Marcus and target US' mass affluent segment.
Read more »
Morgan Stanley beats profit estimates as wealth management and bond-trading revenue outperformMorgan Stanley reported first-quarter earnings-per-share of $1.39 today, beating Wall Street estimates.
Read more »
Morgan Stanley profit beats estimates on wealth management, lower costsMorgan Stanley beat analysts' estimates for a quarterly profit on Wednesday...
Read more »
ThinkProgress, a Powerful Democratic Media Arm, Calls Out Bernie Sanders for His WealthThe Asahi Shimbun/GettyInside Sen. Bernie Sanders’ presidential campaign there has always been a sense of vulnerability about the attacks that would come against the senator over the wealth he has accumulated in office. After all, it becomes a bit tricky for a politician to rail against the perniciousness
Read more »