Thoughts Behind a Vacation/Retirement Home
August 19, 2010I have to first say thank goodness for the “free upgrade” my wife and I received during our vacation in Playa Paraiso because it afforded me the ability to write this while viewing the tranquil waters of the Caribbean from our ocean view room. Nice.
Back to the topic at hand. We have been talking for a while about purchasing a home that we could spend some time in, if not live permanently, when we both retire. We both love the beach so that part of our decision was easy. The difficult part lies in the when, where and how we will complete this dream. Now what’s interesting about this process is that it also applies to other investment decisions we make. For example, every solid investment decision starts with a goal – what are you saving for? (For those keeping score, your goal is the “what” in the decision process.) Once you have your goal, it’s time to think about “when” you want to achieve that goal. This is a huge part of the decision process because that will guide you to the “how,” or to put it into real terms, your investment choice.
Here’s the dilemma we face though, we haven’t decided “where” we want to purchase our retirement/vacation property. Why is that a dilemma? Because we can’t make a solid investment decision until we galvanize what our goal is. If we purchase strictly for vacation purposes, we need to figure a whole different set of scenarios than we would if we purchase strictly for retirement. So as you can surmise, my wife and I need to really sit down and figure out “what” we are purchasing for because only when we have figured that out can we complete the “when and how” part of our decision.
Oh well, I can think of worse places to have these discussions then sitting oceanfront in Playa Paraiso!