Early retirement, vacation home or travel? Hard decision

[Anonymous]

Okay, I don't mean to piss anyone off or come off like a troll but here's my dilemma and I was hoping for opinion's from other's that might have been in the same boat. I was able to retire fairly young at 55 along with being financially set for life. The problem is my wife and I love to travel but at the same time would love to buy a vacation home for retirement. The issue is I really can't do both and spend the kind of money I'm looking at.

I guess my big question is, would you rather have a vacation home or several beautiful vacations around the world each year? Seem's like it should be easy to answer but it's not. Any serious suggestions or past experience would be appreciated. Also, I've heard all the pro's and con's of owning a second home.

[Anonymous]

Post in the Money Forum.

[Anonymous]

Since you don't have to work why not make the vacation home your permanent residence and then still travel. You'll have both!

[Anonymous]

Easy for me - vacations. I'd rather explore the world than go to the same place over and over. Also, I've got enough appliances to repair, windows to replace, etc. with my one house. Not interested in fixing more toilets and replacing another roof!

[Anonymous]

Depending on your assets, you could look at the vacation home as an investment - especially if you're willing to get a property manager and do the AirB&B thing when you aren't using the property. Just set the cost really high to avoid low-quality renters.

Even if you don't want to recoup some cost through renting it out though, if you have enough assets to be "set for life," I'd think you could get a vacation home and plan to sell it further on into your retirement if you need the money for a nursing home, etc. It doesn't have to be a forever decision.

Unless you're looking at a reallllllly expensive vacation home, I think that real estate that you could potentially liquidate being a part of your investment portfolio for/in retirement is entirely appropriate.

[Anonymous]

Travel, no question!

[Anonymous]

We have the vacation home and while we still travel quite a bit it's not as much as we would otherwise. I personally really like the vacation/second home - I love travel but it's not relaxing. I really enjoy living at the beach for 2-3 months. However I am not retired, I am still working full time and travel a lot for work so my perspective may be different.

[Anonymous]

Upkeep of two homes is tiring. Travel travel travel.

[Anonymous]

Travel now. As you get older the idea of long adventurous trips will be less appealing and a nice vacation home will be relaxing.

[Anonymous]

Travel. Buy the vacation place in ten years.

[Anonymous]

Op, live your live. You will answer your own question.

[Anonymous]

Meant ~ live your life. If you find yourself unhappy to leave someplace and yearn to go back again-and-again, you have your answer.

[Anonymous]

I don't understand the dilemma - are you not selling your current home?

At 55, I'd cash out on the current home. I'd roll that money into purchasing a modest, easy to maintain full-time home in a desirable/vacation area where you will want to retire. You'll still have plenty of cash to travel. I'd also rent out the retirement on AirBnB/VRBO to generate extra income and get some tax deductions.

With the retirement home, you want something with one or two levels and probably max of 2500 square feet. Get a place you'll want to age in and will be easy to make adjustments as you become less mobile.

[Anonymous]

I would downsize to a college town. All the amenities of larger communities but with less people. The people change so you would get to see a different crowd all the time sort of like a vacation spot without the resort pricing. Generally higher IQ's than the rest of the populous with a nice influx of ideas and money. Great resale value due to high turnover rate. I would then buy a vacation home for now with plans to sell later. As the upkeep gets more of a burden and the novelty wears off you could free up that income to then travel. At your age you can have it all, but you have to realize that eventually owning properties becomes a burden unless they are bringing in investment dollars.

[Anonymous]

Anonymous wrote:Easy for me - vacations. I'd rather explore the world than go to the same place over and over. Also, I've got enough appliances to repair, windows to replace, etc. with my one house. Not interested in fixing more toilets and replacing another roof!

+1 or, as one PP suggested, sell the primary residence, live at the vacation house, and still travel!