Why do people see their home as an investment?

oldandhappy

We bought a foreign property 20 years ago so although we had 2 morgages going for 5 years at the same time but with one rented it paid for itself and more...we sold the forgeign one at a decent profit 2 years ago and downsized and went coastal(property cheaper by far)6 years ago and that was Investment which enables us to have retired early and live comfortabley.......

irnbru_2

tawnyowls wrote:

with a pension, if you die 6 months after actually starting to draw it, then even if you've paid into it for 40 years, only the pension company benefits.

Whereas if you surpass your life expectancy (and who wouldn't want to) the pension company loses out.

Andy_L

tawnyowls wrote:

if you die 6 months after actually starting to draw it, then even if you've paid into it for 40 years, only the pension company benefits.

Not necessary true if you're
a in draw down
b purchased an anuity with a guaranteed minimum period
c purchased a joint annuity

clutton_2

Andy - i have never understood what an annuity is - please can you tell me ? thanks - i have some private pensions and there is talk of annuities there.

silvercar

Annuity - you give them a lump sum and they give you a monthly agreed income for life.

Andy_L

As silvercar said, the monthly income (as a %age of the lump sum) depends on your general health, sex & age.

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1149249277,45547,#annuities