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[quote=Anonymous]I'm 41 and single and have a net worth of a little over $500K ;about half tied up in my home and half in my 401K, Roth and other assets.  I would prefer to have more in the bank and less in my house, but let's face it, real estate has worked out a lot better for me than my investments have in the last 15 years.  And I bought the cheapest house I could find in the area (Arlington 22207) where I wanted to live, but it was still pricey.

To elaborate: I bought a $145K townhouse in 1999 with $38K for a down payment.  Paid about the same per month for my mortgage as I would have in rent.  ($1,075/month.)  Sold it 12 years later and cleared $160K.  Put that into my current place, which is now worth $100K-$200K more than I paid, though I'm definitely paying a bit more than I would for a smaller rental, maybe $500/month more.  In that same time frame, my accounts lost a ton of value and then finally gained it back, so the only real plus has been the free money from employer matching.  My plan is to have the house paid off when I retire, so I can sell it and buy a smaller/cheaper place, or live in it mostly expense-free.  The other investments will pay for taxes, utilities, food, etc.

I think you want to have some of your money in real estate and some in the markets, but how much of each depends on how confident you are in the housing in your area.  Housing in this area has performed so much better than in some other areas, though the initial buy-in is a lot higher.  I would not throw all your money into a house, but would meet with an advisor to see how to put some money away for retirement.[/quote]

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