I love reading Scott Burn’s blog. He has such great examples and questions from people and he really gives them sound advice. He doesn’t yell like Cramer from Mad Money and isn’t annoying like Suze Ormann either.
In this particular post, Scott addresses a question from a 75 year old woman. She is selling a $600K house in California and is planning on buying a $360K house in Texas. Her only source of income is social security. Scott does a great job of pointing out that the taxes and maintenance on her home in Texas would easily burn up her social security and she would run out of money quite quickly. He also points out that the cost of housing is so much cheaper in Texas that she should set her sights on a $150K house and invest the difference. The equity that she would be investing would be a nice supplement to her social security!
Anyway, go check out the article.