In this episode, we explore an eye-opening reality that even millionaires are facing when it comes to retirement planning.

🔍 Key Points Covered:

• Over one-third of millionaires believe it will take a miracle to be ready for retirement.
• Having $1 million or even $2 million doesn't guarantee financial security in retirement.
• Doing the math:
  • $2 million spread across 20 years equals about $100,000 per year.
  • That’s only $8,000 per month — before taxes, insurance, and healthcare costs.
• Inflation significantly reduces your spending power over time.
• Many people underestimate how long they will live post-retirement — and how much it will cost.
• Planning ahead is critical. Even with seven-figure savings, you need a strategy to make your money last.

💬 Ask yourself:
What are your retirement plans?
Will your savings be enough if you want to live more than 20 years after retiring?

In this episode, we explore a powerful but often overlooked force keeping the real estate market locked tight — and why even new inventory won’t fix it.

📌 Key Takeaways:

• The real estate market is like a game of musical chairs — for someone to buy a home, someone else has to move out.
• Even if new homes come on the market, demand still outweighs supply.
• One semi-invisible but critical factor is holding the market in place: historically low interest rates.
• Homeowners with 2–3% mortgage rates are effectively “locked in” and have no incentive to sell or move.
• Moving from a 2% mortgage to 5% or higher creates a massive jump in monthly payments — even for a similarly priced house.
• Most homeowners would have to downgrade to maintain the same payment, which very few are willing to do.
• Going “up” in home size or price now means doubling monthly payments due to higher interest rates.
• Many homeowners will choose to invest in upgrading their current home instead of buying a new one.
• This mortgage “lock-in effect” dramatically reduces the number of homes available for resale.
• Even if homeowners rent out their current home and buy a new one, it does not increase overall housing inventory — it simply shifts ownership.
• Buyers coming from the rental market will bear the brunt of higher mortgage rates, but they aren’t impacting resale inventory.
• The housing shortage may worsen, as fewer homeowners list their homes due to this invisible financial disincentive.

🏡 Final Insight:
The true crisis in real estate isn’t just about home prices or new construction — it’s about a mortgage-rate trap that keeps homes off the market. Until interest rates drop or new solutions are found, don’t expect a flood of available homes anytime soon.

Episode Show Notes / Description:

• Facing a large homeowners insurance premium increase? You might be tempted to go "bare" — meaning no homeowners insurance if you own your home outright without a mortgage.
• Going bare can be very risky, especially if you live in disaster-prone areas (hurricanes, fires, earthquakes, hail). If your house is damaged or destroyed, all costs come out of your own pocket.
• If you have significant savings and plan to self-insure, that might be an option, but be cautious.
• Another alternative is raising your deductible to a very high amount (e.g., 20% of your home's value) which could lower your premiums substantially.
• Some insurance companies offer options to delete certain catastrophic coverages but keep liability protection — worth exploring with your agent.
• If you decide to go bare, consider parametric insurance policies as a way to offset some risk.
• What is parametric insurance?
  • A simple, standalone policy that pays a flat amount of money if a specific event or trigger happens (e.g., a category 3 hurricane within 40 miles).
  • It pays out a fixed sum regardless of actual damage and does not involve traditional claims adjusting.
• Parametric insurance won't cover your entire loss, but it can provide funds to help with living expenses or rebuilding after a disaster.
• Important: Parametric insurance does not cover liability claims if someone is hurt on your property. Maintaining proper liability insurance is crucial.
• Parametric policies are generally cheaper than full homeowners insurance and may serve as a stop-loss tool if you choose to go bare.
• Discuss your options with your insurance agent, though many may have limited experience with parametric policies.
• For more detailed information and personal consultation, visit riskcoage.com or use the provided link below.
• Remember, you also have access to live, one-on-one consultations with licensed experts across insurance, investigations, civil mediation, real estate, business development, and more through our platform.
• If you found this episode valuable, reach out with questions or comments and explore deeper discussions with actual humans, not just automated answers.