Is It the Right Moment for That Major Purchase?
by Alicia Wanek
Listen… is your home tranquil? If you find yourself as an empty nester, you’ve endured the hectic days of sibling squabbles, carpool duties, and the morning rush to get the kids ready for school. Now, the only sound of little feet may come from the occasional visit from the grandkids. It’s time to concentrate on yourself.
As couples transition into this new chapter of their lives, they often reassess their lifestyles. Many consider making what Chuck Cowell from Guaranty Bank & Trust refers to as “luxury purchases that aren’t necessities.” You might be thinking of acquiring a beach or mountain getaway where the whole family can gather, or perhaps you dream of an adventure to that far-off destination on your bucket list.
The question arises: Are you financially prepared to make that significant purchase without compromising your retirement savings?
First, Chuck suggests confirming that you can manage your monthly expenses. Even if your mortgage is settled, there are ongoing costs and taxes to consider. Next, ensure you evaluate all costs related to your planned purchase, adding a buffer for unexpected expenses. You never know when health issues might arise during travels or when maintenance will be needed on your new acquisition.
Finding a balance between your current financial situation and future spending is crucial. While many baby boomers have saved over the years, they have also been largely affected by the prolonged period of low interest rates. Their investments might struggle to keep pace with inflation, and if you’re not generating additional income, the value of your savings could remain stagnant.
Is there a positive aspect? Absolutely. This is a great time to travel. With reduced airline fuel prices and lower gas expenses, overall travel costs are dropping. There are plenty of deals available if you take the time to explore your options. Additionally, while investment portfolios can experience rapid downturns, they also have the potential to rebound just as quickly. Patience may just be key to making that luxury acquisition at the right time.
In the end, Chuck reminds us to “Enjoy life; that’s why you’ve saved.” Remember, you can’t take your possessions with you when your time comes.
Editor’s Note: Chuck Cowell is the Dallas Market Chairman for Guaranty Bank & Trust. For any inquiries regarding this topic or other financial questions, feel free to reach him at ccowell@gnty.com.
