Dave Says: How Much Do I Need For Retirement?

Dear Dave,

What percentage of your total net worth should your personal residence be during retirement?

Sue

Dear Sue,

Honestly, I don't have a set percentage for this kind of thing. The larger your net worth, the smaller the percentage would be. Let's say you're worth $5 million. In this scenario, you wouldn't want to have 50 percent in your home. But if you're worth $150,000, you're probably going to have more than 50 percent in your home.

So, the smaller your net worth is, the larger the percentage your home will likely be. That's very reasonable, and it's one way you can look at. If you're in the million-dollar range of net worth, I don't think I'd want to have half or more of it in my house.

But I think you see how I'm looking at that. You want to try and have as small a portion as possible, but you also have to have a home that's suitable for your needs.

—Dave