Last night, over cocktails with clients, we were discussing the unbelievable economic havoc in recent days and weeks. Giant and prestigious corporations collapsing. Mortgage companies bailing out or needing to be bailed out.

My client made a comment that she is concerned about her 401K, and is thinking of taking out as much as she can and put it in real estate --- something we can see, touch. Her husband is just as concerned. None of us are comfortable relying on our social security or retirement for our old age.

This was echoed by others in our circle, those who did or do have 401K accounts. We were reminded of people who suffered tremendous losses when their companies folded (think Enron, for one). So although the stock market through the years have shown a robust growth in portfolio, nonetheless, the reality of it is that "it's all on paper".

So let's look at an actual situation. Here's a Zillow chart illustrating the value of my fixer Tudor listing at 983 Pearl in Alameda CA

So...this being a real estate buyer's market in many areas, is this the time to think of putting it in real estate? Real estate values may be down...so that makes it a good time to buy, right? And one will only lose if one sells at the height of the market?