Kitchen Table Finance

S3E30 – Making Smart Housing Decisions in Retirement

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Introduction

Welcome to another episode of the Kitchen Table Finance Podcast! In this episode, Dave and Nick are joined by our newest associate advisor, Cole Williams. Today, we’re diving deep into making smart housing decisions during retirement—a topic that’s crucial for anyone looking to secure their financial future.

https://youtu.be/xOidCd80wm4

Key Points Covered:
1. Current and Historical Housing Market Overview
  • Comparison of current interest rates with those from the 70s and 80s.
  • Analysis of consumer sentiment on whether it’s a good time to buy a house, contrasting the 1980s and today.
  • Discussion on the affordability and availability of homes now versus the past.
    • 2. Interest Rates and Inventory Issues
    • Examination of why current higher interest rates still fall within historical norms.
    • The significant inventory problem today is due to fewer new builds and low homeowner mobility.
      • 3. Economic Impact on Retirement
      • How the Baby Boomer generation’s housing decisions have influenced personal finances.
      • The ongoing debate on whether owning a home remains the bedrock of wealth.
        • 4. Renting vs. Buying in the Current Market
        • Comparison of average costs between renting and buying.
        • The hidden costs of homeownership versus renting.
        • The potential financial advantages of renting and reallocating savings.
          • 5. Market Dynamics and Investment Trends
          • The rise of short-term rentals through platforms like Airbnb and VRBO.
          • Impact of large investment banks and hedge funds entering the real estate market.
          • Political and economic factors influencing housing market trends.
            • 6. Advice for Retirees
            • Practical advice for retirees considering downsizing or relocating.
            • How to capitalize on the current market to maximize financial gains from homeownership.
              • Conclusion

              Making informed housing decisions in retirement can significantly impact your financial health. Whether you’re considering buying, selling, or renting, understanding the market dynamics and economic factors at play is essential.

              Call to Action

              Do you work for Michigan State University? Are you looking for solid retirement planning advice? Reach out to Dave and Nick, hosts of the Kitchen Table Finance podcast and certified financial advisors. They specialize in the unique benefit plans offered by MSU and how to capitalize on all you have available to you through your investments. Contact Shotwell Rutter Bear Financial Planners at SRBAdvisors.com, or simply search for the Kitchen Table Finance Podcasts wherever you get your podcasts.

              Stay tuned for more insightful discussions, and don’t forget to subscribe to our podcast for future episodes!

              Episode Resources:
              • National Association of Realtors
              • Redfin Housing Market Data
              • Bankrate Mortgage Rates
                • ...more
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                Kitchen Table FinanceBy David Shotwell CFP(r) and Nick Nauta CFP(r)
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