House=Home
In this episode of Talking Real Money, Don and Tom take aim at one of the most cherished American myths: homeownership as an investment. Using a cautionary tale from the Wall Street Journal, they explore the true financial costs—and emotional baggage—of owning a home, especially during and after a real estate boom. They argue that homes are lifestyle choices, not wealth-building tools, and highlight the illusions created by leverage, low interest rates, and outdated generational beliefs. Listener questions cover optimizing Roth IRAs with limited 401(k) options, the pros and cons of charitable remainder trusts, and the viability of flat-fee vs. AUM advisors.
0:04 Why your home isn’t part of your investment portfolio
0:26 The myth of the American Dream and why owning may not make sense
1:33 A buyer’s remorse story from Atlanta
2:35 $3,000/month to own vs. $1,200/month to rent
3:34 Hidden expenses: $13,000 sewer connection surprise
4:31 “I can’t sell my house” = “I won’t lower the price”
5:35 Housing returns: even hot markets underperform stocks
6:19 Divorcees sharing homes to keep a 2% mortgage
7:35 Why paying off a low-rate mortgage often makes no sense
8:45 Don and Tom both bought homes for lifestyle, not wealth
10:13 Florida: where houses go to die (and get re-roofed)
11:33 Owning a home is not a prerequisite for wealth
12:48 How to send voice questions (seriously, do it)
14:18 Listener Q: 401(k) with limited options—how to balance Roth IRA
15:25 Fund strategy: AVUV and AVDV combo
16:44 Listener Q: Why not mention charitable remainder trusts?
17:27 Listener Q: Are flat-fee advisors better than AUM?
19:00 Hourly advisor costs and why they seem high
20:35 Outro: Tell a friend, save them from financial doom