what is your definition of 'a poor'

[dazzleman]

Also home ownership is the #1 key to building wealth.

Buying assets in general (stocks, real estate, businesses) is the key to building wealth.

True, but real estate is a major component because of the compounding effect.  As you hold down your housing costs over the years and decades, that allows for a greater accumulation of wealth in other areas even as your home increases in value.

[TheresNoMoney]

The key is with home ownership you have to move to a cheaper house to really benefit from the gain.

Thus, your top option is to hold real estate as an investment and not as a residence.

[dazzleman]

The key is with home ownership you have to move to a cheaper house to really benefit from the gain.

Thus, your top option is to hold real estate as an investment and not as a residence.

True, but many people do that upon retirement.  Home ownership is really ultimately a retirement strategy.

[falling apart like the ashes of American flags]

someone who needs welfare

[Bono]

Also home ownership is the #1 key to building wealth.

Buying assets in general (stocks, real estate, businesses) is the key to building wealth.

True, but real estate is a major component because of the compounding effect.  As you hold down your housing costs over the years and decades, that allows for a greater accumulation of wealth in other areas even as your home increases in value.

Two words:
Zero liquidity.

[dazzleman]

Also home ownership is the #1 key to building wealth.

Buying assets in general (stocks, real estate, businesses) is the key to building wealth.

True, but real estate is a major component because of the compounding effect.  As you hold down your housing costs over the years and decades, that allows for a greater accumulation of wealth in other areas even as your home increases in value.

Two words:
Zero liquidity.

That's only if all your wealth is in your home.  Because owning a home holds down housing costs in the long run, it gives greater liquidity in the long run.

[John Dibble]

Someone who has little or no money, duh.

Of course, there's also opebo's asinine definition that anyone who works for a living is poor because if they get fired, become disabled, or go crazy then they'll not have much money any more.

[Gabu]

Someone who has little or no money, duh.

Of course, there's also opebo's asinine definition that anyone who works for a living is poor because if they get fired, become disabled, or go crazy then they'll not have much money any more.

Of course, given that opebo is still waiting for his inheritance, it seems to me that he's just as capable of losing all his money in a flash.

We can only hope.

[John Dibble]

Someone who has little or no money, duh.

Of course, there's also opebo's asinine definition that anyone who works for a living is poor because if they get fired, become disabled, or go crazy then they'll not have much money any more.

Of course, given that opebo is still waiting for his inheritance, it seems to me that he's just as capable of losing all his money in a flash.

Yeah, I've pointed that out before - by his own standards he can be considered a poor. Heck, he's more of a poor than working folks by that logic, considering he has no real maketable skills with which to get a good job in replacement.

[Everett]

My definition of 'a poor' - BAD GRAMMAR!

[David S]

In the opebo world, a poor is basically anybody who has to work, but doesn't own the company.

^^^^^^^^^^

[A18]

No, in opebo world, anyone who has to work is a poor, even if he does own the company. A true member of the 'owning class' lives off return from capital alone.

[Emsworth]

No, in opebo world, anyone who has to work is a poor, even if he does own the company. A true member of the 'owning class' lives off return from capital alone.

So basically, according to opebo, a poor is any member of the proletariat.

[Joe Kakistocracy]

'A poor' is an adjective that is incorrectly used as a noun.

[dazzleman]

No, in opebo world, anyone who has to work is a poor, even if he does own the company. A true member of the 'owning class' lives off return from capital alone.

Yes, you're probably right.

[Bono]

Also home ownership is the #1 key to building wealth.

Buying assets in general (stocks, real estate, businesses) is the key to building wealth.

True, but real estate is a major component because of the compounding effect.  As you hold down your housing costs over the years and decades, that allows for a greater accumulation of wealth in other areas even as your home increases in value.

Two words:
Zero liquidity.

That's only if all your wealth is in your home.  Because owning a home holds down housing costs in the long run, it gives greater liquidity in the long run.

that's not exactly what I meant.
My qual is that it is too difficult to cut your losses in case anything goes wrong. Much more difficult than most other investments.

[dazzleman]

that's not exactly what I meant.
My qual is that it is too difficult to cut your losses in case anything goes wrong. Much more difficult than most other investments.

True, but homes are one of the least risky investments in the long run, and the benefits over the long term of owning over renting easily offset the liquidity issue, in my opinion.

I am helping one of my relatives with her retirement.  She blew all her money while she was working, but does own a home that she bought 35 years ago.  It is fair to say that the only thing that is allowing her to retire is the fact that she owns this home.  If she were renting an apartment, she would have to work until she dropped, or accept a terribly meager standard of living.  Her house is what's allowing her to have a decent retirement.  I have found that the single best component of a retirement plan is home ownership at the youngest possible age, withthe house paid off before retirement.