Reply to Early retirement, vacation home or travel? Hard decision

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=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.

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Sorry to break it to you, but if you cannot afford to do both, you are not 'set for life'. [/quote]

This is just silly. Typical DCUM snark. Of course someone can be "set for life" but not feel comfortable buying and maintaining two homes [u]and[/u] traveling extensively.  Or, perhaps they could afford to do all three for some period of time, but it wouldn't leave the kind of "cushion" that they need to feel comfortable that their money will last as long as it needs to.  Retirement calculators just give you predictions -- most of us don't want to cut it that close.  [/quote]

When someone says set for life, I think it has a connotation of a level of income that is not going to really restrict your activities.  Technically, if you live in a trailer that costs $500/mo and you are collecting 2k a month in SS, ypu would be set for life, but I don't think that's what most people think of when they hear that term.  [/quote]

But define "really restrict your activities."  If you mean truly unlimited, then almost no none would ever retire.  If you want to retire early, and come up with a budget of say, $250,000 per year in retirement, and you save enough money to throw off that much income every year (on average, adjusted for inflation), by my definition you could be "set for life."  With that income, you could afford a million dollar house (you probably have about that much equity in your existing house), and be able to spend $20 to 30k per year on travel, but you probably couldn't afford a million dollar beach house, as well (depending on what else you spend money on  -- country club, boat, etc).  I know, because I'm doing this calculation right now. If you want to have money to travel extensively [u]and[/u] have the beach house, you're going to work a little while longer.  But that doesn't mean that, if you decide that second home isn't important to you, that you aren't "set for life." [/quote]

To me, "set for life" means you have millions and can factor in the cost of the very best around the clock private nursing care if you or spouse should need it, and have money left over to leave some inheritance. 
You and the OP are well off, planned well, doing great, but "set for life" is not what I'm getting out of either of your situations. (No snark intended, it was just an interesting phrase to use to describe the OP's situation)[/quote]

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