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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: ild who wrote (6956)11/19/2002 12:03:07 PM
From: MulhollandDriveRespond to of 306849
 
very interesting stuff, ild..

>>The main exercise we went through was to:
-find out the net worth of the age cohort from sources such as Fed Reserve Board.
This included insurance, real estate and as many assets as we could find, as well as debts.
-add in PV of social security benefits.
-then subtract the PV of expenses of retirees per AARP estimate of 75% of income
(the "retirement liability")<<

i don't see the difficulty at all in determining a negative net worth assuming the average liability still exceeds the equity value of real estate....*if* that is indeed the case.