Don’t Spend Your Retirement Money Frivolously
If you are retired, or preparing for retirement take my advice and don’t spend your retirement money frivolously. Why? Because like the saying goes, “old habits are hard to break.”
“Don’t Spend Your Retirement Money Frivolously” is Part 4 in our series: 5 Ways Retirees Should Protect Their Money During Retirement
One habit that I have witnessed with retirees around the country is the unbridled tendency to spend money on worthless “chachkies” that eventually ends up being passed along from yard sale to yard sale, like an annoying endless chain letter. If this is you, for the LOVE of your children who will have to clean out your garage, basement or attic some day, please stop it and heed my advice, don’t spend your retirement money frivolously!
You could gift that money to your grandchildren, or give it to a worthwhile charity, but for goodness sake, let someone else buy the stuff that is being sold at garage sales.
Don’t become that weekend shopper of other peoples worthless stuff. Sorry if my words seems a bit harsh, but people hire me tell them the truth and to provide them with information, including services which adds value to their lives.
Don’t Fall For The Timeshare Trap
If you are retired, or preparing for retirement, I trust that you have probably experienced one or two timeshare sales presentations by now. I understand how enticing the thought of being able to vacation at the same beautiful resort every year can be. My wife and I visited a beautiful timeshare presentation in the Bahamas, at Atlantis Hotel on Paradise Island. Let’s carefully consider the cost of buying a timeshare in 2017. The average cost of a timeshare in the United States is $15,700.
If you saved the amount spent on a time share by investing in equities (stocks), you would have approximately 185,000 in 20 years, assuming that your portfolio averages approximately 12% per year over $357,338.00, for the cost of being able to vacation to every continent of over the same period of time. And I didn’t even mention those annoying timeshare maintenance fees!
Don’t Buy A RV Unless You Love Driving and Buying A LOT of Gasoline
Don’t buy a Recreational Vehicle (RV) unless you are actually going to use it on a frequent basis. Who doesn’t love the idea of traveling the country in a RV? I have done it a couple of times and it is a lot of fun, but traveling by RV also costs an arm and two legs worth of gasoline. Then there is the depreciation factor.
After you drive any vehicle off of a car lot it has depreciated in value by approximately 15% to 25%. However, the potential depreciation factor of a RV is potentially worse, especially in an inflationary economy, with rising gas prices
I once saw a brand spanking new Bus RV on the lot of a dealer and it was listed for $428,000. About 4 months later that same RV was selling for $215,000! The price declined by $213,000.
RV’s are a lot of fun, a very relaxing way to travel and see the great American countryside, but they do not hold their value that well. Therefore, if you are going to purchase a RV, you should use it frequently and if not, consider renting it out for use by others on a site such as www.rvshare.com. Just don’t be that person who purchased a RV and later realized that driving requires a lot of stamina and you end up with a fancy RV that remains parked on your driveway, beside your house.