Points to Ponder—Buying a Home vs. Retirement Fund

One of the biggest financial decisions faced by new couples today is to choose between establishing a retirement fund and buying a new home. Most couples in their 20s or 30s won’t be able to afford both, so they’ll have to choose one over the other. If you count yourselves among these couples, you need to talk with your spouse about your financial goals and what really matters to you both.

For couples in their 20s, retirement could be a distant 40 to 50 years down the road, so most couples would think a retirement fund is of less priority. The sad news is that many workers today work on a contractual basis, which means they won’t receive a single cent of pension when they retire. If you’re a contractual worker, unless you can find a regular job where you can receive benefits, it’s best to take care of your retirement issues sooner than later.

Buying a home is something that’s best done in your 30s because hopefully by then, you’ll have enough saved for a down payment. That said, most people will choose buying a home over retirement, mainly because the benefits of owning a home are immediate, not to mention real estate properties generally increase in value over time, which in turn, can be used for retirement.

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