The value of owning a second home can be very rewarding, fun, and tempting. You can buy it in your own city or that vacation spot you are longing for. It can also be a bad idea to purchase a new home. Today's episode talk about Tom Sightings article on Do You Really Want to Own a Second Home? and it details the pros and cons of owning a second home could become a drain on your retirement finances.
Kathy lives in the Palm Springs area of Southern California, which is also a dessert but not as humid as South Carolina where I live and the weather in Palm Springs is about 115 degrees. But instead of being there experiencing that heat, she’d stay on a mountain cabin that she and her husband rents every summer for a month. They’ve been doing it for 23 years. That is why they always get the question of why don’t you buy a second home because you go there every summer for a month? People don’t realize the downsides or the cons of buying another house to live in.
The size of our house is critically important when you are rightsizing. The reason Kathy called it rightsizing rather than downsizing is that she thinks it’s all very individual. What’s right for you might not be right for me. Also, rightsizing isn’t a sacrifice; instead of a downgrade, it’s an upgrade. The article, Think you need a 2000 sq ft house to be comfortable? Think again! talk about the benefits of rightsizing for you and your family.
If you listened to the previous episode in this series, you’ll remember that retirement is a new idea. The first episode of the series discussed that. The second episode discussed that so many baby boomers aren’t really planning on retiring until they are physically unable to work. Then, the third episode talks about maybe we don’t ever want to retire. Today’s episode discussed why you might want to hire some of the people who don’t even want to retire and have better skills.
The article, How hiring the over-50s is the key to beating the skills crunch, talks about the shortage of people with better skills and hiring the older worker will help.
The concept of retirement cannot be achieved in today's world without having the appropriate planning and funds in motion well before you reach retirement age. One of the problems is we’re stuck in a rut. It works for our parents it worked for our grandparents. But when you look at the whole picture of life, that was only a very short period of time. Things change but we are reluctant to change. That is why, when the economy went flat, we were trying to hold on to what we believe in, what we were groomed for and it wasn’t going to change.
This has happened in the past as well. If the people's concept hadn't changed, we would still have people who were building a horse and buggy.