Retiree Spending Regrets

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Retirement is finally here. You have all the time in the world to enjoy life, and you’re making plans. Part of those plans may be making some large purchases to accentuate your new lifestyle.

Even if you have the finances to make these purchases, should you? There are some that you should think about. Which retirement purchases cause the most regret?

Sailing Off in a New Boat

Many retirees dream of sailing the seas or at least trolling around a lake. They can take their friends and grandkids for water excursions.

But the reality of owning a boat hits hard pretty fast, and many are left with regrets.

One reality is time. Boating is an all-day event. You must lug in supplies for the day, prepare the boat, and then clean the boat when you’re finished.

You also find that not everyone you thought would join you has the time or energy.

There are also the initial and ongoing costs. A small to mid-size pontoon boat runs between $19,000 and $90,000. Then you have fuel, mooring, and insurance costs.

Instead of buying that boat, you should test the waters. Rent a boat or join a boat renting club for a summer. You’ll then see how often you go out on the boat and if it’s worth the trouble and expense.

RVing Around the Country

Having a constant vacation and seeing America sounds wonderful. But it’s not for everyone. It takes a lot of work and planning.

The average recreational vehicle (RV) costs between $10,000 and $400,000. Once you’ve purchased, you still have maintenance, fuel, insurance, etc.

Many retirees find traveling the roads of America tiring after about a month of moving from one location to another. And then the RV sits in the driveway.

Instead of fully jumping into the RV lifestyle, rent one over the summer or winter. You'll experience firsthand if this is really how you want to spend your retirement.

Building a Dream Home

Many wait their entire life to build a large dream home. They want a beautiful house with the biggest kitchen and finest finishes. But this can get expensive fast.

Besides the continuous expense of building, when you move in, there’s the home and lawn upkeep.

If your children have all left, it’s just the two of you strolling around in a large home.

And if you built a two-story house, you might have a problem as you age. This is the time to downsize, not upsize your life.

High-End Luxury Car

Luxury cars are often the go-to when someone retires. The “I earned this” is top of mind. But this is an ongoing expense. Luxury cars are expensive to maintain or repair. Most of them require premium fuel, so your gas cost will increase. You'll also have higher insurance premiums.

Luxury cars tend to depreciate quickly, which can hamper selling.

Living in a Resort

Living in a warm climate by the beach is attractive. Resorts have all the amenities like pickleball courts, swimming pools, and golf courses. But the novelty may wear off after a few years.

There’s also the ongoing expense. After all, someone has to pay for that clubhouse and gym. Consider homeowner fees and assessments.

Gifting Too Much Money

You may want to help family members out. For example, your daughter may be buying a house and needs help with the downpayment. It’s fine to gift her the money, but don’t do this at the risk of endangering your retirement fund.

In other words, don’t let the love for your children cloud your financial judgment.

Timeshares and Vacation Homes

A second home looks like a great investment. If you purchase it in a warmer climate, you may dream of spending your winters in your new house. But this can deplete your retirement savings. Keep in mind you'll have the additional cost of utilities, taxes, insurance, and maintenance.

The same goes for a timeshare. You may tire of going to the same place only once yearly. And you’ll have the homeowner’s fees and maintenance to contend with.

Few people are happy about buying timeshares. They usually experience buyer’s regret when they drive off the grounds.

If you want a timeshare, buy one on the secondary market. There’s always someone who wants to sell—and it’s a lot less expensive.

Can You Buy Happiness?

Some purchases create happiness. The saying goes that more money doesn’t necessarily lead to more happiness. This may be true, but how you spend it does.

For example, use money to buy time. If you hate yard work or housekeeping and would rather be doing fun activities, hire help. Have someone else take care of the grounds or house. It’s worth it to free up your valuable time.

Another purchase that may create happiness is buying experiences over things. Having a party or taking the family on an excursion will bring more joy than a luxury car. You’ll be building memories for everyone and having a good time.

And, finally, you can invest in others. This is giving to worthwhile organizations or your church. But don’t overdo it and put yourself at financial risk. Many people feel giving to worthy causes is fulfilling, and it brings them happiness.

The Epoch Times copyright © 2023. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.