VX, my point about real estate values is that all houses are going up at the same rate. So if you sell your house and buy another, you don't have that money, unless you buy a smaller house. And if you don't buy, you have to rent--and rent's gone up too. Sure real estate is a good investment, but appreciation on a house is not savings.

Your discourse on taxes is cracked. If you get 1% on 100,000, that's $1000 interest income, on which you'll pay maybe $400 in income taxes to the various jurisdictions. You're still $600 better off than stashing it under the mattress.