Through 40 years of marriage, we rented a beach house nearly annually. Owning our own was a dream. After hubby retired, we had the cash and got serious about it - and realized it would be a dumb decision. We continue renting a beach house as needed, and maintaining it is the owner's problem, not ours!
Regarding buying a car; You need to know why you are buying the car. Four years ago, I made the decision to buy a new car. I had seen the advice not to buy new. Mostly because of depreciation but calculating the NPV for the car, assuming I would keep it at least 10 years, it was the correct decision. Today, 4 years later; my car has less than 12,000 miles and it basically a new car. Every 6 months, I bring it in for its standard maintenance, about $100 each six months. Each time I go back to the dealership, they offer to buy my car for more than I paid for it. So much for depreciation. I see the car as transportation. I am near retirement, some people would say I am already in retirement but never told my employer. In any case, I don't need to impress anyone. My car, if properly maintained, might just outlive me.
@@HolySchmidt When you reach the point where your investment income plus pension plus social security exceed your expenses, you are working because you want to not because you need to. I feel an obligation to the people that I work with, but if I don't feel that obligation back, I can leave without regrets. Currently I invest %100 of my net income. It is not for any other reason than to develop a discipline to not rely on the income. It feels good to work because you want to, not because you need to.
Not busting on your comment but you really need to consider increasing your insurance to cover this cars value. Sadly if that car gets totalled regardless of whose fault your going to b totally screwed by the insurance companies. Best friends Dad who was in his 70s bought a luxury car shortly after he retired. In 6 years he hadn't put 10k miles on it and a delivery truck totalled it while it was parked. Insurance company lowballed him and he refused to settle. Eventually after suing and several years of back and forth negotiations he settled for considerably less than the cars replacement value minus the attorneys fees. Which barely covered the difference on what was offered vs settled. He told me he was offered about 80% of the replacement value for their final offer and another 5% after litigation.
About 10 years ago, my wife and I were debating a 1) tow-able camper, or 2) just pay for cheap hotels. The camper would have been $15k (used), a tow vehicle would have been an extra $15k over the sedan I was going to buy. That's $30k...not including insurance, storage, gas, maintenance..even campsite fees. Divide that by $100 per night hotels, and that's 300 nights in hotels. The camper idea died quickly. Not to mention you're stuck at campsites.
@@JohnJohn-wr1jo Two years ago we went out to AZ, CO, NM area for two weeks. Hotels ranged anywhere from $80 to $150 a night. Nowhere near $250. No bugs/roaches. (We looked)
We did a month long road trip this past summer. NV, ID, coastal CA, OR, and WA. We also paid between $80 and $125 per night. Most places offered free hot breakfast and no parking or resort fees. All were clean and comfortable. In some places we had a suite and still stayed well within budget.
I am 78 years old. Everything you say is accurate. I freely acknowledge that I am not the brightest crayon in the box. However, I deliberately avoided those 5 purchases. As a result, I am retired with no credit card debt, no car debt or deferred maintenance, and a house. The house is old and in move-in condition. I clean it. You can buy the new home two doors down. It is listed for $6.4 million. The new house at the end of the block is rented out for $15,000 a month. My total monthly house payment, including taxes and insurance is $1000 a month!
I've been debt free since 2008. I just pay insurance and utilities. I have a townhouse across the street from a private lake and golf course. All is well at age 65😊
Yeah, he doesn't know anything about cars but that's okay we get the gist. A boat/yacht is a money pit; the specialized boat brokers (like a real estate broker) make 10-12% that's just standard. Motorhomes 100% agreed another moneypit. Carefully consider any HOA place; no telling what that price will be in the future and they appreciate less in value than stand-alone non hoa places if you look at comps .
I'm retired and have sports cars and an RV however I do almost all of the maintenance myself for little cost. My RV is parked covered behind the home. Same with the home. I do most of the maintenance and yard work myself. Sold the timeshare a long time ago. So, you can still have all the toys at a reasonable cost.
Mother-in-law had a timeshare and when she passed the timeshare was a nightmare to get rid of. The maintenance fees continued. Took years to finalize her probate.
The general idea is that timeshares infinitely get inherited unless the heir does a ton of legal work to dump it prior to their death. You can’t just walk away from the contract. I had an acquaintance attorney who did nothing but represent people who owned time shares and fought on their behalf to get out of the contracts so their kids wouldn’t have to inherit the “asset” which had TONS of expenses.
I recently filled in my large backyard pool for this very reason. It was fun while the kids were growing up. But then was rarely used and still took lots of weekly time and money to maintain. Including expensive repairs with the ground shifting. So happy it's gone. I don't plan to move when I retire (I love CA and the ocean) but I'm setting myself up for a more simple life.
My wife and I have both been tempted by the RV and Time Share scenarios. Renting an Airbnb or VRBO has helped provide less expensive much more fiscally responsible alternatives.
A friend with over $5M in retirement savings has less disposable income than i will have when i retire next year at 50 on much less than half of that. Because she has a large home, boat, jet ski’s and other toys, most of which she uses very infrequently but doesn’t want to let go of because these things signal her success. Her words not mine. Fascinating to me. And a good illustration of what you’re describing here.
@@vinyl1Earthlink not true in her case. I went through this friend's entire financial plan with her. She can afford the lifestyle. What's surprising to me is that since in addition to the lifestyle, she has so much in 401k money that she gets killed on taxes and can't take advantage of subsidies. She also did a bunch of annuities which will make it near impossible to manage taxes. These things, in combination with her lifestyle choices, make it look like she might have been better served retiring far sooner and doing Roth conversions when she still had the runway for those to help. It's an interesting lesson in more isn't always more.
Regarding cars, I agree - in general. The thing about Ferraris is that some models don't always depreciate to nothing. Depending on model, they'll drop some but then start climbing and keep right on going. Soooo, *if* it's past the depreciating curve, and *if* it's appreciating faster than annual expenses, it may be financially smart to keep it. The above aside, I'll stand up and say I'm guilty - not buying a Ferrari, but a used Jaguar F-Type R. It was shocking how much it had depreciated from new before we got it, more than 50%. In the year we kept it, it was perfectly reliable, but in that time, I became scared of its potential costs. One headlight assembly is $4,000. A used (not rebuilt) engine is $20,000, not counting installation. So, it's gone now and we now have a much more practical compact SUV, and I'm okay with that.
My husband bought a vintage Harley Sportster. He does drive it to work to save gas, and we store it at home. We only spent 3500.00 and he enjoys it. Our solar panels cost 42000.00 by comparison.
We are doing great! I don’t want a flashy sports car. Been there done that twice. I don’t want a boat at all. They are fun, I almost bought one, I’ll pass. I don’t want a motor home, travel is ok, I wouldn’t use a motor home. I don’t care to have an estate style home. We did move into my in laws house when he passed. And sold our home. More space as we had already downsized, but the daughter and grand daughter moved in. Appreciate the extra room. No interest in a timeshare at all. I would buy property 1st rather than a timeshare. I am retiring in 8 months or less and debt free. Our SS is the same as what we made when we both worked and had a house note.
When I got divorced in my forties I bought a sporty car. Not even a high end one, just one for fun. Was a lot of fun but the maintenance costs quickly made me realize the hidden costs of such a purchase. Brakes were 1300 and one time I had to do them twice in a year because of the miles I put on the car. Sports car tires don't last long either so I was paying almost $1000 a year on those. Oil changes cost more and any other little thing that came along was 2 or 3 three times the cost of a "regular" car. Loved the car, hated the maintenance costs.
My dream car is a Mini Truck. Trouble is they aren't allowed on US roads. So I'm moving to SE Asia where they're common. And I can hire my own private driver for $300-500/mo. Cool.
Regarding time shares, you cannot let sunk cost determine your future financial decisions. You made a mistake in buying the time share. Do your best to get out of this and move ahead. By the way also do your best not to enrich the seller of the time share. They are sleazy.
I made one of the mistakes you warned me about. For my retirement “gift” to myself I bought a well equipped new pickup truck. After the honeymoon wore off I realized that I made a mistake. Then COVID hit. In 2 years I had only driven 9,000 km. Fortunately I had a horseshoe up my hind quarters. The dealer wanted it back as there was a shortage of new trucks. I managed to sell my 2 year old truck for $7,500 more than I paid for it. Dodged a bullet.
I have 3 Porsches, there all paid off, and I do all the work on them. There my hobby and my only vice so there staying. My GT4 is one of only 2500 and it’s worth the same as what I paid for it. My 1986 Carrera has appreciated $40,000 since I purchased it. I agree with the boat and motor home. Real money pits.
I don’t have a timeshare my boat is worth 16,000 dollars my sports car is by Chevy and is paid for. So I plan to keep them into retirement and enjoy them even more.
My brothers both returned their timeshares back to the builder rather than sell them. My wife and I have Disney Vacation Club. We had three contracts and sold one through a reseller and made $5,000 profit on the transaction. This was a case where the timeshare made sense. We're still going yearly to a Disney park but plan to sell the contracts when we can't travel anymore. I know, not the usual story.
I'm glad you made an exception for retirees who are really rich - there are some out there. I know one retiree who pays $25K a year in property tax on his house, but he has more money than he can ever spend, and half of it will go to the government when he dies.
I’ve own class A, C and travel trailer. Those numbers and items you listed aren’t not accurate. We don’t spend that much annually, and yes, we take very good care of our RV. Lot of the stuff you listed can be done by yourself. I will say insurance has skyrocketed for whatever reason.
Regarding the boat, camper and car…sure, if you pay someone to do everything for you, it’s going to cost you. Most people who own these items are DIY people with mechanical and electrical skills, like myself. Sure, there will come a day that I’m not physically able but that’s not until I’ve gotten most of my use from them. Just another perspective.
I furnished steel for one of the Bass Brothers new garage / gym back in the 1980's. He had a 1980 Ferrari with VERY low miles. I asked him why the low mileage, he told me he figured it cost him ~ $100 for every mile he drove the thing. I figure if the maintenance costs give a Billionaire pause, I have zero business wanting one.
Thanks for ruining my recent retirement. The only thing I didn't want to consider was the time share. You are absolutely correct except some of the expenses are much more now.
Sports car - never had / don't want Motor cycle - never had but could be could if main transportation in sw usa Boat - same as sports car Estate home - same as sports car Time share - same as sports car Rv - don't own, can't afford, but if it's your passion to travel, you can skimp elsewhere to afford what makes you happy / improves quality of life
I want a Oliver travel trailer but the requirement is that it has to fit in my garage because the HOA won't allow it parked in the backyard. I have decided just to rent different travel trailers that will fit in my garage to see if I will really like it and how much I would use it. In two years, I will decided wheter to purchase one or just kept renting.
I just bought a vintage truck as a hobby, it only cost about half a percent of my total wealth and won't cost much to keep on the road and improve and will keep it's value so if I need to get rid of it it won't be a loss. I have zero interest in boats. I looked at motor homes vs motel rooms and it would take many years of several trips/year to break even on the purchase of even a small used motor home, I travel little so it's a no brainer to just stick with motel rooms. I don't own a home at all, I'm content to rent a modest duplex, in my case buying a home makes zero financial sense, even after projecting 20 or 30 years into the future. Time shares have never interested me.
I have to say that bridge looks awfully familiar being that I’m from the Central Coast originally. It looks like someone’s heading up north from Big Sur. I think staying in hotels would be a lot cheaper than staying in that RV. On another note, I retired at 56 and have come to terms with the fact that I need to live on a budget of less than half of my annual salary. I live in the same house and drive the same cars, but I’ve had to cancel a few subscriptions, don’t go to barbers, don’t go to restaurants, stay home most of the time in the garden or out hiking locally and don’t spend money on Amazon for things I don’t really need. I have a library card and don’t buy books. I know my priorities and you should too. I chose freedom over material wealth.
That's exactly what we do. We're debt free. I'm using my free pass to the huge reck center. Volunteer in the city garden etc. We're thrifty when traveling and will pack a lunch and healthy snacks. Airbnbs offers kitchens and more space to cook .
Thank you for this…your insights and advice are excellent. Thank goodness I’ve never been a car/motorhome/boat/timeshare person. Driving a jalopy is so liberating. For everything you describe here, my habit has been to rent, not purchase.
Great information. I however am considering buying a large pickup truck and tow-able camper as part of my retirement. I have dreamed about traveling the US in this manner for many years.
paid off all the cars sold my 3400 sqft home bought a 2 bedroom townhouse out right. don't want an expensive sports car a motorhome or a boat. I want a get away cabin and travels while I still can. Life is not complicated make it simple.
Interesting topic and video. I think your view on motor homes will be unpopular. While we don't have one, I see a lot of folks in their 60s, 70s and 80s piloting these humongous vehicles down the road. Some I am sure sold their home and put the money into the motorhome.
I am with you. I would rather sleep in a hotel. Also when you get home there is a question of where do you park the thing. Our local storage place charges upwards of $1200/mo for a large RV parking spot.
@@JBoy340aWell, in my town we are allowed to park our RVs in our driveways. And the great thing about my Winnebago is that we can travel all over and then sleep in our own bed every night. It’s strange how an RV can be a vehicle when you are driving but then when you park and shut the curtains it turns into a home.
On a similar topic to owning a boat, I am thinking of an airplane. The one I want cost more than $100k but I could buy a used one for about $34k. The question then becomes, how much enjoyment do I get from either purchase. The $100k plane would be a lot of fun because it is much faster and can perform maneuvers the more basic $34k plane could do, but in either case the cost of maintenance, hanger rental, etc. is just an expense to have a toy I might use a few times a year. I think having a boat is similar. I live on long island sound. Having a seaworthy boat would let me cross the sound, but how often would I actually make the trip?
Great video! The advice is really helpful. I’m curious, how do you determine the right time to sell these items before retirement? Also, are there any specific strategies for getting the best value when selling things like property or investments?
I have a 300 cc Honda Forza scooter as a second vehicle. Much more fun than driving a car, can be used for shopping and joy-riding. Gets 75 MPG. BTW I am 70 and live in a Northern climate. Not a cool bike, but at my age my cool days are long gone.
Actually the thought of driving a motor home terrifies me. I have no desire to own one. Same goes for a boat. Not the least bit interested in a time share. It’s hard to downsize with nine grandchildren all living close by. I would like to own a Corvette. They’re much cheaper to own and maintain than a Ferrari or Porsche. At least that’s what I tell myself……
Ferrari service was MUCH cheaper than I expected... I figured oil change alone would be $2k. The oil change on my R8 is a bit of work - much more involved than a regular car (I do my own work). I'd like an airplane, but the overall costs just aren't reasonable and I'd never buy a boat or motorhome and will downsize my house as soon as practical. You know the old chestnut - "if it flys, floats or f***s, rent it!" (PS, buying the biggest home you can afford is terrible advice! 1,800sq is more than plenty for me when we retire. Running costs on our "estate"/McMansion is nuts, and timeshares are a scam)
You neglected to cover the retired couple who is going to full time live in a motor home. Depending how you do it. It is cheaper than maintaining a brick and mortar home with high property taxes
Thank God I don't want or own any of these things, except my hobby cars. They are paid for and I fix them myself for fun. None of them are worth very much also.
CARS GET US AROUND AND A 20K CAR DOES IT JUST AS WELL AS ONE COSTING 120K. WE CAN ONLY LIVE IN ONE HOUSE AT A TIME, AND WHEN OUR KIDS LEAVE HOME, A SMALLER HOME IN THE IDEAL LOCATION BECOMES A BETTER CHOICE, SOME LOVE MOTOR HOMES AND IF THAT IS YOUR ONLY HOME, IT CAN BE AFFORDABLE COMPARED TO A BIG HOUSE OR EXPENSIVE RENTAL. DO RATIONAL PEOPLE EVER BUY TIMESHARES?
I'll keep my 30' sailboat in retirement, thank you. I paid cash for it and will use it until I'm no longer able. Won't care what it sells for when the time comes. Sports cars, planes and RVs? Thank you, no.
I don’t want a boat - I want a friend with a boat…
I once had a brother-in-law with a boat. It was the best. Still have the brother-in-law but no boat.
Same
Very wise!
I have always had a truck, now I have a son with a truck. When I need a truck, he brings it over. I get his truck and his strong back.
Exactly. I keep kayaks at my boat dock and rely on others for boat action.
Through 40 years of marriage, we rented a beach house nearly annually. Owning our own was a dream.
After hubby retired, we had the cash and got serious about it - and realized it would be a dumb decision.
We continue renting a beach house as needed, and maintaining it is the owner's problem, not ours!
Mary- very wise...! 😊
Depends where you are. A beach condo in Florida can be rented out almost year round and is a great investment.
Regarding buying a car; You need to know why you are buying the car. Four years ago, I made the decision to buy a new car. I had seen the advice not to buy new. Mostly because of depreciation but calculating the NPV for the car, assuming I would keep it at least 10 years, it was the correct decision. Today, 4 years later; my car has less than 12,000 miles and it basically a new car. Every 6 months, I bring it in for its standard maintenance, about $100 each six months. Each time I go back to the dealership, they offer to buy my car for more than I paid for it. So much for depreciation. I see the car as transportation. I am near retirement, some people would say I am already in retirement but never told my employer. In any case, I don't need to impress anyone. My car, if properly maintained, might just outlive me.
Love the “in retirement and never told my employer”
@@HolySchmidt When you reach the point where your investment income plus pension plus social security exceed your expenses, you are working because you want to not because you need to. I feel an obligation to the people that I work with, but if I don't feel that obligation back, I can leave without regrets. Currently I invest %100 of my net income. It is not for any other reason than to develop a discipline to not rely on the income. It feels good to work because you want to, not because you need to.
Not busting on your comment but you really need to consider increasing your insurance to cover this cars value. Sadly if that car gets totalled regardless of whose fault your going to b totally screwed by the insurance companies. Best friends Dad who was in his 70s bought a luxury car shortly after he retired. In 6 years he hadn't put 10k miles on it and a delivery truck totalled it while it was parked. Insurance company lowballed him and he refused to settle. Eventually after suing and several years of back and forth negotiations he settled for considerably less than the cars replacement value minus the attorneys fees. Which barely covered the difference on what was offered vs settled. He told me he was offered about 80% of the replacement value for their final offer and another 5% after litigation.
You are not a car guy. I live where the curves are amazing and a 2 seater sporty car like a Miata is fun to drive and cheap to maintain.
About 10 years ago, my wife and I were debating a 1) tow-able camper, or 2) just pay for cheap hotels. The camper would have been $15k (used), a tow vehicle would have been an extra $15k over the sedan I was going to buy. That's $30k...not including insurance, storage, gas, maintenance..even campsite fees. Divide that by $100 per night hotels, and that's 300 nights in hotels. The camper idea died quickly. Not to mention you're stuck at campsites.
When's the last time you priced a hotel room? Unless your talking a roach trap bed bug infested room your looking at $250 a night.
@@JohnJohn-wr1jo Two years ago we went out to AZ, CO, NM area for two weeks. Hotels ranged anywhere from $80 to $150 a night. Nowhere near $250. No bugs/roaches. (We looked)
Yes. We sold our 70,000 RV and realized we could have 7 great $10,000 vacations. LOL. Also got tired of draining the grey and black water tanks.
I totally agree!!
We did a month long road trip this past summer. NV, ID, coastal CA, OR, and WA. We also paid between $80 and $125 per night. Most places offered free hot breakfast and no parking or resort fees. All were clean and comfortable. In some places we had a suite and still stayed well within budget.
I am 78 years old. Everything you say is accurate.
I freely acknowledge that I am not the brightest crayon in the box. However, I deliberately avoided those 5 purchases. As a result, I am retired with no credit card debt, no car debt or deferred maintenance, and a house. The house is old and in move-in condition. I clean it. You can buy the new home two doors down. It is listed for $6.4 million. The new house at the end of the block is rented out for $15,000 a month. My total monthly house payment, including taxes and insurance is $1000 a month!
Love that!
Holy Moly! Expensive neighborhood & smart move!
I've been debt free since 2008.
I just pay insurance and utilities.
I have a townhouse across the street from a private lake and golf course.
All is well at age 65😊
The voice of reason ~ thank you for your wisdom Mr. Schmidt
My pleasure
Yeah, he doesn't know anything about cars but that's okay we get the gist. A boat/yacht is a money pit; the specialized boat brokers (like a real estate broker) make 10-12% that's just standard. Motorhomes 100% agreed another moneypit. Carefully consider any HOA place; no telling what that price will be in the future and they appreciate less in value than stand-alone non hoa places if you look at comps .
I'm retired and have sports cars and an RV however I do almost all of the maintenance myself for little cost. My RV is parked covered behind the home. Same with the home. I do most of the maintenance and yard work myself. Sold the timeshare a long time ago. So, you can still have all the toys at a reasonable cost.
Thanks for the comment Phil
Mother-in-law had a timeshare and when she passed the timeshare was a nightmare to get rid of. The maintenance fees continued. Took years to finalize her probate.
Yes. I’ve heard that
Why were those costs passed on to you ??
The general idea is that timeshares infinitely get inherited unless the heir does a ton of legal work to dump it prior to their death. You can’t just walk away from the contract. I had an acquaintance attorney who did nothing but represent people who owned time shares and fought on their behalf to get out of the contracts so their kids wouldn’t have to inherit the “asset” which had TONS of expenses.
I recently filled in my large backyard pool for this very reason. It was fun while the kids were growing up. But then was rarely used and still took lots of weekly time and money to maintain. Including expensive repairs with the ground shifting. So happy it's gone. I don't plan to move when I retire (I love CA and the ocean) but I'm setting myself up for a more simple life.
The two happiest times of boat ownership is when it is bought and when it is sold.
You neglected the biggest money suck most people have...children... even adult children.
And wife.
Most states have heavy taxes on the sale of children
Family, who wants one anyway?...
Mine are worth every penny and there is no money sucking from them. 😊
Im relying on my kids to let me move in if president musk gets his way
Instead of a boat pay for a fishing charter. Much cheaper and less stressful.
My wife and I have both been tempted by the RV and Time Share scenarios. Renting an Airbnb or VRBO has helped provide less expensive much more fiscally responsible alternatives.
Good alternatives
I am a fan of airbnb 😊
I have never wanted to own or drive a huge motor home, or even a medium one.
I have a Winnebago and it is expensive but very enjoyable. Trips can be a lot of money when you only get about 5 miles to the gallon.
2017 Miata paid for..Reliable, economical and I do all the maintenance.
Buy a dog. Love it, cherish it. Your heart will thank you.
Yep..we love our maltese.
If we can't take her with us, we don't go❤
One of life's pleasures is a good dog!
Yes, I have a Corolla LE. You just try and pry it from my hot little hands.
That’s what I’m talking about!
A friend with over $5M in retirement savings has less disposable income than i will have when i retire next year at 50 on much less than half of that. Because she has a large home, boat, jet ski’s and other toys, most of which she uses very infrequently but doesn’t want to let go of because these things signal her success. Her words not mine. Fascinating to me. And a good illustration of what you’re describing here.
Nowadays, $5 million isn't that much. You really need $10 million, $15 million, or $20 million to live in that kind of style.
@@vinyl1Earthlink not true in her case. I went through this friend's entire financial plan with her. She can afford the lifestyle. What's surprising to me is that since in addition to the lifestyle, she has so much in 401k money that she gets killed on taxes and can't take advantage of subsidies. She also did a bunch of annuities which will make it near impossible to manage taxes. These things, in combination with her lifestyle choices, make it look like she might have been better served retiring far sooner and doing Roth conversions when she still had the runway for those to help. It's an interesting lesson in more isn't always more.
She has more disposable income than you. She is just disposing it faster than you keeping up all those toys.
Regarding cars, I agree - in general. The thing about Ferraris is that some models don't always depreciate to nothing. Depending on model, they'll drop some but then start climbing and keep right on going. Soooo, *if* it's past the depreciating curve, and *if* it's appreciating faster than annual expenses, it may be financially smart to keep it.
The above aside, I'll stand up and say I'm guilty - not buying a Ferrari, but a used Jaguar F-Type R. It was shocking how much it had depreciated from new before we got it, more than 50%. In the year we kept it, it was perfectly reliable, but in that time, I became scared of its potential costs. One headlight assembly is $4,000. A used (not rebuilt) engine is $20,000, not counting installation. So, it's gone now and we now have a much more practical compact SUV, and I'm okay with that.
My husband bought a vintage Harley Sportster. He does drive it to work to save gas, and we store it at home. We only spent 3500.00 and he enjoys it. Our solar panels cost 42000.00 by comparison.
Get a fishing pole or two and go fish in the river. It's very relaxing and you'll probably meet some interesting people.
Don't buy things, buy experiences. I might splurge more on hotel travel in retirement as opposed to the 2 star places i usually use.
Sports cars are an experience..
I can have each and every one of these items, anytime I want. Simply Rent It. ❤
Large cost not mentioned: Opportunity Cost of Capital. Paid off Ferrari at say $100k is $8K opportunity cost at 8% average return (S&P 500 index)
While not Ferraris, I bought brand new 2001 and 2007 Corvette ZO6s. No problem.
08 Vette for me... easy car to maintain myself... 👍🏼
69 Stingray I've had for many years
I like the last idea of timeshare, very informatic, thanks for the video!
The title of this video could easily be called ''Don't Buy These Five Things AFTER You Retire.
Also, don't ever buy these things
Probably more important not to buy them before you retire. Especially early on. The money saved could be invested and growing.
I’m just glad that I never had the bug to own any of these. Also, I paid for my own college costs and so did my three children.
You didn’t mention my airplane!
Lol😂
It’s OK. This does not apply to airplanes. (From a Cessna owner). 😋
Oh dear god, that is the MOST expensive toy ever unless you have your own airstrip, hanger and an AP mechanics license. Huge overhead.
We are doing great!
I don’t want a flashy sports car. Been there done that twice.
I don’t want a boat at all. They are fun, I almost bought one, I’ll pass.
I don’t want a motor home, travel is ok, I wouldn’t use a motor home.
I don’t care to have an estate style home. We did move into my in laws house when he passed. And sold our home. More space as we had already downsized, but the daughter and grand daughter moved in. Appreciate the extra room.
No interest in a timeshare at all. I would buy property 1st rather than a timeshare.
I am retiring in 8 months or less and debt free. Our SS is the same as what we made when we both worked and had a house note.
$1M USD for an Estate Home???
Here in Silicon Valley, $1M will probably buy you a nice sized dog-house.
@@krwada in Indiana that would buy you a 7 to 10 thousand square foot mansion with 10+ acres of beautiful land. Not kidding.
But in SV a nice home will increase in resell value at 8-10%/year. Not so cars, boats, RVs, etc. They all decrease in resale value every year.
Time to move...😊
#6 Don't retire in Silicon Valley
When I got divorced in my forties I bought a sporty car. Not even a high end one, just one for fun. Was a lot of fun but the maintenance costs quickly made me realize the hidden costs of such a purchase. Brakes were 1300 and one time I had to do them twice in a year because of the miles I put on the car. Sports car tires don't last long either so I was paying almost $1000 a year on those. Oil changes cost more and any other little thing that came along was 2 or 3 three times the cost of a "regular" car. Loved the car, hated the maintenance costs.
My dream car is a Mini Truck. Trouble is they aren't allowed on US roads. So I'm moving to SE Asia where they're common. And I can hire my own private driver for $300-500/mo. Cool.
Regarding time shares, you cannot let sunk cost determine your future financial decisions. You made a mistake in buying the time share. Do your best to get out of this and move ahead. By the way also do your best not to enrich the seller of the time share. They are sleazy.
Wise words
I made one of the mistakes you warned me about. For my retirement “gift” to myself I bought a well equipped new pickup truck. After the honeymoon wore off I realized that I made a mistake. Then COVID hit. In 2 years I had only driven 9,000 km. Fortunately I had a horseshoe up my hind quarters. The dealer wanted it back as there was a shortage of new trucks. I managed to sell my 2 year old truck for $7,500 more than I paid for it. Dodged a bullet.
I have 3 Porsches, there all paid off, and I do all the work on them. There my hobby and my only vice so there staying. My GT4 is one of only 2500 and it’s worth the same as what I paid for it. My 1986 Carrera has appreciated $40,000 since I purchased it.
I agree with the boat and motor home. Real money pits.
They’re * or they are*
I don’t have a timeshare my boat is worth 16,000 dollars my sports car is by Chevy and is paid for. So I plan to keep them into retirement and enjoy them even more.
All seem reasonable
My brothers both returned their timeshares back to the builder rather than sell them. My wife and I have Disney Vacation Club. We had three contracts and sold one through a reseller and made $5,000 profit on the transaction. This was a case where the timeshare made sense. We're still going yearly to a Disney park but plan to sell the contracts when we can't travel anymore. I know, not the usual story.
A boat is a hole in the water that you throw money into.
People pay money to get rid of timeshares.
I'm glad you made an exception for retirees who are really rich - there are some out there. I know one retiree who pays $25K a year in property tax on his house, but he has more money than he can ever spend, and half of it will go to the government when he dies.
I’ve own class A, C and travel trailer. Those numbers and items you listed aren’t not accurate. We don’t spend that much annually, and yes, we take very good care of our RV. Lot of the stuff you listed can be done by yourself. I will say insurance has skyrocketed for whatever reason.
I got rid of the Acura MDX and bought a Hyundai Tucson. Couldn't be happier. Also living with one car...the Tucson...for both of us.
Regarding the boat, camper and car…sure, if you pay someone to do everything for you, it’s going to cost you. Most people who own these items are DIY people with mechanical and electrical skills, like myself. Sure, there will come a day that I’m not physically able but that’s not until I’ve gotten most of my use from them. Just another perspective.
Thank you for the insight.
I furnished steel for one of the Bass Brothers new garage / gym back in the 1980's. He had a 1980 Ferrari with VERY low miles. I asked him why the low mileage, he told me he figured it cost him ~ $100 for every mile he drove the thing. I figure if the maintenance costs give a Billionaire pause, I have zero business wanting one.
Thanks for ruining my recent retirement. The only thing I didn't want to consider was the time share. You are absolutely correct except some of the expenses are much more now.
Wow! The other items made the Ferrari sound reasonable! (But seriously, I'll have to settle for a Mazda Miata.)
I love the Miata!
Sports car - never had / don't want
Motor cycle - never had but could be could if main transportation in sw usa
Boat - same as sports car
Estate home - same as sports car
Time share - same as sports car
Rv - don't own, can't afford, but if it's your passion to travel, you can skimp elsewhere to afford what makes you happy / improves quality of life
My brother has a huge motorhome and he says many trip are cheaper to fly. He says the fuel alone can be ridiculous.
I want a Oliver travel trailer but the requirement is that it has to fit in my garage because the HOA won't allow it parked in the backyard.
I have decided just to rent different travel trailers that will fit in my garage to see if I will really like it and how much I would use it. In two years, I will decided wheter to purchase one or just kept renting.
I love my Ferraris. Maybe will part with them one day when I don’t enjoy driving fast anymore. They are certainly not cheap toys.
I just bought a vintage truck as a hobby, it only cost about half a percent of my total wealth and won't cost much to keep on the road and improve and will keep it's value so if I need to get rid of it it won't be a loss. I have zero interest in boats. I looked at motor homes vs motel rooms and it would take many years of several trips/year to break even on the purchase of even a small used motor home, I travel little so it's a no brainer to just stick with motel rooms. I don't own a home at all, I'm content to rent a modest duplex, in my case buying a home makes zero financial sense, even after projecting 20 or 30 years into the future. Time shares have never interested me.
I have to say that bridge looks awfully familiar being that I’m from the Central Coast originally. It looks like someone’s heading up north from Big Sur. I think staying in hotels would be a lot cheaper than staying in that RV. On another note, I retired at 56 and have come to terms with the fact that I need to live on a budget of less than half of my annual salary. I live in the same house and drive the same cars, but I’ve had to cancel a few subscriptions, don’t go to barbers, don’t go to restaurants, stay home most of the time in the garden or out hiking locally and don’t spend money on Amazon for things I don’t really need. I have a library card and don’t buy books. I know my priorities and you should too. I chose freedom over material wealth.
Very well said
Bixby Bridge right? I want to get my extended family back out to the Bay area one more time and would love a day trip down to Monterey.
Yeah, that’s the one.
That's exactly what we do.
We're debt free. I'm using my free pass to the huge reck center. Volunteer in the city garden etc.
We're thrifty when traveling and will pack a lunch and healthy snacks.
Airbnbs offers kitchens and more space to cook .
Thank you for this…your insights and advice are excellent. Thank goodness I’ve never been a car/motorhome/boat/timeshare person. Driving a jalopy is so liberating. For everything you describe here, my habit has been to rent, not purchase.
Thank God for comments. Saved me an 15 minutes.
Mike time to sell the Ferraris.
Shhhhhh.
Great information. I however am considering buying a large pickup truck and tow-able camper as part of my retirement. I have dreamed about traveling the US in this manner for many years.
Seems sensible
paid off all the cars sold my 3400 sqft home bought a 2 bedroom townhouse out right. don't want an expensive sports car a motorhome or a boat. I want a get away cabin and travels while I still can. Life is not complicated make it simple.
Interesting topic and video. I think your view on motor homes will be unpopular. While we don't have one, I see a lot of folks in their 60s, 70s and 80s piloting these humongous vehicles down the road. Some I am sure sold their home and put the money into the motorhome.
Can’t do it. While I love to take the Winnebago out for a trip, there’s nothing like coming home again.
I am with you. I would rather sleep in a hotel. Also when you get home there is a question of where do you park the thing. Our local storage place charges upwards of $1200/mo for a large RV parking spot.
@@JBoy340aWell, in my town we are allowed to park our RVs in our driveways. And the great thing about my Winnebago is that we can travel all over and then sleep in our own bed every night. It’s strange how an RV can be a vehicle when you are driving but then when you park and shut the curtains it turns into a home.
On a similar topic to owning a boat, I am thinking of an airplane. The one I want cost more than $100k but I could buy a used one for about $34k. The question then becomes, how much enjoyment do I get from either purchase. The $100k plane would be a lot of fun because it is much faster and can perform maneuvers the more basic $34k plane could do, but in either case the cost of maintenance, hanger rental, etc. is just an expense to have a toy I might use a few times a year. I think having a boat is similar. I live on long island sound. Having a seaworthy boat would let me cross the sound, but how often would I actually make the trip?
Perhaps rent one a few times first :)
@@HolySchmidt Maybe but you need to keep you hours up. Flying is an expensive hobby.
You have convinced me: We will save a lot by renting a motorhome rather than buying one.
Great video! The advice is really helpful. I’m curious, how do you determine the right time to sell these items before retirement? Also, are there any specific strategies for getting the best value when selling things like property or investments?
I'm so glad motorcycles weren't on that list.
Oh wait!
Me too. Love my Harley-Davidson 💯
Love my 5 Italian Bikes
I have a 300 cc Honda Forza scooter as a second vehicle. Much more fun than driving a car, can be used for shopping and joy-riding. Gets 75 MPG. BTW I am 70 and live in a Northern climate. Not a cool bike, but at my age my cool days are long gone.
I’m retired and I have 2 motorhomes. Worth every penny.
Expensive? Yes
Can I drive it for an hour?!?
Actually the thought of driving a motor home terrifies me. I have no desire to own one. Same goes for a boat. Not the least bit interested in a time share. It’s hard to downsize with nine grandchildren all living close by. I would like to own a Corvette. They’re much cheaper to own and maintain than a Ferrari or Porsche. At least that’s what I tell myself……
Maybe the subject of another video!
A man has got to know his limitations.
Not going to get much of an offshore boat for 80k
Thought this as well..Try 200-300K
Good point
Ferrari service was MUCH cheaper than I expected... I figured oil change alone would be $2k. The oil change on my R8 is a bit of work - much more involved than a regular car (I do my own work). I'd like an airplane, but the overall costs just aren't reasonable and I'd never buy a boat or motorhome and will downsize my house as soon as practical. You know the old chestnut - "if it flys, floats or f***s, rent it!" (PS, buying the biggest home you can afford is terrible advice! 1,800sq is more than plenty for me when we retire. Running costs on our "estate"/McMansion is nuts, and timeshares are a scam)
Agreed we just got rid of the Elephant.
$5-10k for brakes in a Ferrari? I didn't know Ferraris had brakes.
Podcasters this dapper are scarcer than hens' teeth.
lol. Thank you!
You neglected to cover the retired couple who is going to full time live in a motor home. Depending how you do it. It is cheaper than maintaining a brick and mortar home with high property taxes
Before you retire you should be exercising and eating right. That will save you money after you retire.
Thank God I don't want or own any of these things, except my hobby cars. They are paid for and I fix them myself for fun. None of them are worth very much also.
CARS GET US AROUND AND A 20K CAR DOES IT JUST AS WELL AS ONE COSTING 120K.
WE CAN ONLY LIVE IN ONE HOUSE AT A TIME, AND WHEN OUR KIDS LEAVE HOME, A SMALLER HOME IN THE IDEAL LOCATION BECOMES A BETTER CHOICE,
SOME LOVE MOTOR HOMES AND IF THAT IS YOUR ONLY HOME, IT CAN BE AFFORDABLE COMPARED TO A BIG HOUSE OR EXPENSIVE RENTAL.
DO RATIONAL PEOPLE EVER BUY TIMESHARES?
BOAT is an acronym. Does anybody know what it means?
Fortunately, I don't have or want any of these five.
60k on a Ferrari is like 300k on a Toyota Corolla
Is Mike's real name Spike? You're friends with Spike Lee??
Spike and Bella?
Swimming pool
BOAT = "Break Out Another Thousand"
Love it!
😂😂
Boats are a hole in the water into which you pourer money.
Timeshare? Runaway.
I'll keep my 30' sailboat in retirement, thank you. I paid cash for it and will use it until I'm no longer able. Won't care what it sells for when the time comes.
Sports cars, planes and RVs? Thank you, no.