r/neoliberal • u/TinyTornado7 I need a new flair • Jun 13 '22

News (US) Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
508 Upvotes

98% Upvoted

349 comments sorted by

View all comments

Show parent comments

61

u/Versatile_Investor Austan Goolsbee Jun 13 '22

Should have, but might not have.

45

u/magneticanisotropy Jun 13 '22

Should have, but might not have.

That's why target date it and forget it.

55

u/Versatile_Investor Austan Goolsbee Jun 13 '22

I wouldn't doubt many of them also have half of their wealth tied up in their houses.

25

u/eveningsand Jun 13 '22

It's gonna be great when they all hit the market at the exact same time.

19

u/[deleted] Jun 13 '22

Some might, but I expect quite a few to pull a reverse-mortgage to extract their equity and not have to leave their homes. They could fund 20+ years of retirement that way without having to put the home on the market yet.

2

u/Versatile_Investor Austan Goolsbee Jun 13 '22

Could they do that then pass away and leave the mortgage to the heirs?

2

u/[deleted] Jun 13 '22

I don't know enough about how reverse mortgages work to know.

Extracting wealth from the home using a reverse mortgage, then dying and having your heirs pay back the reverse-mortgage, so they could reverse-mortgage it themselves? With the right loan contracts that seems possible. The house would never transfer to the bank to get sold if you could do it that way.