Future generations of homeowners should remember the frustrations and family struggles that were caused by the housing bubble being burst and exercise sounder judgment when it comes to buying their next home.

Were you planning on using your home to fund your retirement?

That strategy may not be as sound as it may have been for your parents. A recent article explored this issue in an article titled “Don’t treat your home like a cash cow.

The thought was that a person could purchase a home that was a bit over their price range, but they would see their salary “grow into” the mortgage payments. The home would be an investment that would pay off handsomely 40 years down the road when they were ready to sell.

However, based on the recent market history and outlook for mortgage rates versus the potential in the stock market, mutual funds, and annuities, a person today is much better off buying a more modest home and putting those excess funds into a strong growth fund for a much better return.

If you have questions about how to structure your income to see the greatest return for your retirement, speak to an experienced estate planning attorney.

Reference:, February, 22, 2014: “Don’t treat your home like a cash cow

For more information on asset preservation and estate planning, please visit my estate planning website.

Mr. Amoruso concentrates his practice on Elder Law, Comprehensive Estate Planning, Asset Preservation, Estate Administration and Guardianship.