Robert Kiyosaki in his book, Rich Dad, Poor Dad, makes the point that houses aren't really assets, they're liabilities. Anyone whose mortgage has been caught in the current economic mess has first-hand experience of what he means. Anyone who owns property knows that just paying the mortgage isn't nearly enough. There's also the extensive cost of maintenance to be considered as well. Property depreciates, and that means that, without you doing anything at all, everything you own decays at a given rate. For buildings, the average rate of decay comes down to from new to worthless ruins in about thirty years. Although it may not be directly measurable, depreciation is a real, calculable cost of doing nothing. Think about it: for a nice $300,000 home ($150,000 home + $150,000 property), your cost of doing nothing comes down to as much as $5,000 a year!
Obviously, a house (or a car or a boat or any other big-ticket item) has a calculable monetary value. Now, how about those incalculable 'assets' that go to make up your life? There are a few universal and inviolable laws in this world, and one of them is the law of entropy: the tendency for all things to move toward maximum randomness (otherwise known as 'decay'). It's not really the chaos theory that we have to worry about (the theory that the behavior of large, complex systems [like the weather] is fundamentally unpredictable): that just tells us that we can't tell when or where disaster may strike. It's entropy that assures us that, without taking preventive action, disaster is inevitable. The true cost of doing nothing — whether the cost is calculable or not — is eventual disaster. Assuming that the midlife transition is upon you, what exactly does that mean?



