Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
FYI: Some ideas are evergreen. Take second homes. As a personal finance columnist for Vogue magazine in the early 1970s I couldn’t write about plebeian things like buying your first home. So I wrote about posh things, like buying your second home. They were, I declared, savings accounts in disguise. Regards, Ted https://assetbuilder.com/knowledge-center/articles/the-second-home-retirement-plan
A second home needs to be commutable...for me, that was no more than 90 minutes door to door. The thing about the Cape (mentioned in the article) and other exotic destinations is that they take too long to get there. Your vacation home should be located in a place that, as you approach it, you feel "the monkey jumping off your back". For me, that was being near the ocean, but I chose a New England beach less traveled by.
The weather, as you age, is another big consideration. Have you ever been to the Cape in the winter? I spent too many cold wet windy winter days (on and sometimes in) the water along the coast of New England to ever warm up to the idea of this being my "happy place". It built character in me as a kid, but it drove most of my adult friends to drinking (too much), especially in the Winter. If you are going to drink (too much) at least do it where it's a bit warmer (think Key West) so that when you pass out you don't freeze to death.
Finally, If you are wise, you will develop "retirement hobbies" all throughout your life. Play an instrument, make your own beer or wine, grow vegetables, raise dogs, fix cars, play a sport, hunt, fish, learn to cook, or be a coach. Like owning a second home, these are activities that are merely an extension of who you are (or wish to be).
If you don't find and develop these interest early in life you will probably have a harder time finding and enjoying them later in life. More importantly, it is these interests (hobbies) that will also clue you in as to where this second home ought to be.
Absolutely agree with Bee. We "inherited" a second home which is a mere 1,300 miles from our residence. The location is remote (although scenic) but difficult to get there by car (unless you have many days available for driving to and fro) or flying (small commuter airport with pricey tickets). Can't use the place without a lot of planning. As a weekend get away a second home is doable and fine. Outside of that, and absent a legacy fund to maintain the second home expenses in a remote location, its a PITA.
Comments
I'll add a few other thoughts.
A second home needs to be commutable...for me, that was no more than 90 minutes door to door. The thing about the Cape (mentioned in the article) and other exotic destinations is that they take too long to get there. Your vacation home should be located in a place that, as you approach it, you feel "the monkey jumping off your back". For me, that was being near the ocean, but I chose a New England beach less traveled by.
The weather, as you age, is another big consideration. Have you ever been to the Cape in the winter? I spent too many cold wet windy winter days (on and sometimes in) the water along the coast of New England to ever warm up to the idea of this being my "happy place". It built character in me as a kid, but it drove most of my adult friends to drinking (too much), especially in the Winter. If you are going to drink (too much) at least do it where it's a bit warmer (think Key West) so that when you pass out you don't freeze to death.
Finally, If you are wise, you will develop "retirement hobbies" all throughout your life. Play an instrument, make your own beer or wine, grow vegetables, raise dogs, fix cars, play a sport, hunt, fish, learn to cook, or be a coach. Like owning a second home, these are activities that are merely an extension of who you are (or wish to be).
If you don't find and develop these interest early in life you will probably have a harder time finding and enjoying them later in life. More importantly, it is these interests (hobbies) that will also clue you in as to where this second home ought to be.