When you retire don't splurge

 Some of when we retire do things that in retrospect are silly. I had a cousin who when he retired, said, I worked all my life, and I will no longer work. I will stay at home, watch TV and read. He did just that and two years later his wife left him because he would not do anything around the house as he called it work. Two years after that he died. I had another friend who decided to do a ‘walkabout” he sold his house, bought a fancy motorhome, went on the road and six months later wanted to come back home but the housing market had gone crazy at that time, and he could not afford to come back into the market. His fancy motorhome was only worth 40% of what he paid for it. To this day, he regrets the decisions he made.

Here are some purchases that people have made and have come to regret.

Purchasing a boat is a retirement purchase that people dream about during their working years. They finally quit the working world and pull the trigger, preparing to sail off into the sunset. But there’s more to owning a boat than purchasing the vessel, and costs can add up quickly. Before you know it, what was supposed to give you joy and freedom is tying you down. If you buy a boat for $80,000 and go out in it twice a month, is it a smart way to use the money?

For retirees who prefer to stay on land, resort living is all the rage. That’s for good reason, as with it you get resort-style dining, concierge services, weekly housekeeping, a valet and a slew of activities that can easily fill up your social calendar. However, you may realize that all the things that gave you value and purpose and were fulfilling are back where you used to live, Don’t just pull up your stakes, take some time vacation there and see if it is a nice place to live year-round.

Who doesn’t want to travel in retirement? And what better way than with an RV? You get all the comforts of home and don’t have to worry about lodging. You do have to fill up the tank, which can set you back a pretty penny in the current environment. Remember my friend, don’t buy, rent

Retirement is supposed to be about downsizing, but for some people, it’s the time to build their dream home from the ground up. That’s fine for those who have a lot of cash in the bank or can stick to a budget. All renovations cost more than you think, so plan very carefully and think twice before building.

​It’s normal to want to help your kids, regardless of how old they are, but giving too much can be a big spending regret. Sure, you have the means to pay off your children’s college tuition or give them the down payment for a home, but this generosity can leave you destitute in the future, particularly if you are on a fixed income. It can also cause family strife if you expect repayment and don’t receive it.

We have a time-share and we purchased it over 30 years ago and still find it useful and we still use it. But this kind of property also comes with many costs beyond the initial investment. There’s an annual maintenance fee, utilities and taxes, which can quickly eat away at your retirement savings. They can be a drain on your finances if you don’t use it. I also recommend that if you are going to buy a time share, buy it on the wholesale market. You can get them for pennies on the dollar when compared to buying a new one.