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Strategies & Market Trends : Fidelity Funds -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (3889)	3/14/2006 5:37:49 PM
From: SG	Respond to of 11457

Twenty five years to wait for that million that's actually worth $350k...that's long time for some of us. Let's see, where did I put that trust fund mom and dad set up 50 years ago? SG

To: Julius Wong who wrote (3889)	3/15/2006 10:43:49 AM
From: gregor	Read Replies (1) \| Respond to of 11457

Julius: thanks for the article. It is surprising that the medium net worth is still under `100k. Stocks return on average 10% and property 5-6% according to the article: My son lives and works in Northern Va. A 2400 sq foot home on a 1/5 acre lot built in 1939 will run you $800,000.00 in Arlington. He is looking to sell his townhouse which he bought 4 years ago , at a nice profit. 30 year loans are 6 1/8 to 6 3/8% now. My advice to him is to make the move. Tax advantages, continued property appreciation ( even if at a lesser rate than the past 5 years ) and other intangibles such as long commutes, if living in the suburbs, and convenience. I know that the prevailing wisdom is that the building boom is over. My thinking is that we may have seen the bottom in the cost of money and that the easy money era is over. Even if the property values top out for a few years the cost of carrying the mortgages is only going to increase. I think the system can absorb the arms that are going to go into default...the people who are going to be hurt are not the ones who locked in the low 30 year money.....Gregor