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Episode 3177:

Jeremy Jacobson challenges the conventional wisdom of including home equity in retirement budgeting, emphasizing that doing so can create dangerous blind spots, especially during market downturns. By treating home equity separately and recognizing the benefits of imputed rent, retirees can protect their portfolios and maintain spending power without being forced into selling their homes or taking on unnecessary debt.

Read along with the original article(s) here: https://www.gocurrycracker.com/mortgages-home-equity-and-retirement-spending/

Quotes to ponder:

"Home equity is not included in our net worth for budgeting purposes. I plan to spend less than 4% of the remainder."

"Exclude home equity from the portfolio."

"Debt is leverage, which multiplies returns and losses."

Episode references:

Cfiresim: https://www.cfiresim.com/

Risk Parity Radio: https://www.riskparityradio.com/

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