From FOMO to “Uh Oh”: 3 Large Purchases Many Retirees Regret

You worked hard for your retirement. Taking some time to carefully consider large purchases with long-term hidden costs will ensure you can continue enjoying every minute of it!

Story by Rebecca L. Bennett

 

You dedicated your career to serving your community and earned every penny of your TCDRS retirement benefit, so you deserve to live out your retirement dreams as you see fit.

However, financial experts warn against spending too much too quickly in those early years of retirement, when it can be most tempting to give into the Fear Of Missing Out (FOMO) and splurge on big-ticket items with boatloads of hidden expenses. (Yes, “boatloads”. Can you see where this is going?)

Here are three large purchases to consider carefully, because many retirees end up regretting them:
 

Boats and Recreational Vehicles

Many of our soon-to-be retirees express a desire to sail or drive off into the sunset. While these major purchases may be right for you, it’s still a good idea to take a long hard look at your retirement budget — both now and in the projected future — to determine if buying (rather than renting) a boat or RV makes financial sense. To own a boat, you will also need access to a trailer and boat slip, and both boats and RVs require funds for upkeep and specialized storage during the off-season.

Time-shares and Resort Condos

Time-shares and resort condos can be an attractive draw for retirees due to their offered amenities, social opportunities and proximity to beautiful vacation destinations, plus the option for friends and family to join in on the fun. However, these types of properties can come with steep HOA and upkeep costs, plus utilities and taxes. It can also be difficult to sell them when you want out, so it’s important to carefully weigh the long-term benefits and risks before buying.

Dream Houses and Cars

You may well have the money to buy (or build) your dream home or car in retirement, but these investments may not necessarily be future-proof. As they age, many retirees find it helpful to downsize (rather than upgrade) their dwellings to reduce costs and maintenance/cleaning requirements, and increase safety. Furthermore, monthly payments can strain your fixed income and affect your ability to afford unexpected expenses, like increased costs of living and medical emergencies.

You worked hard for your retirement. Taking some time to carefully consider large purchases with long-term hidden costs like these will ensure you can continue enjoying every minute of it!

Personal Finance