With $1.1 million in the bank, the math on an $80K pool might work, even if you're retired. But is a year-round maintenance commitment the best way to lure your grandkids to visit?
When you have grandchildren, your mindset tends to shift. Things you never would've spent money on for yourself, or even your own kids, are suddenly purchases you're willing to seriously contemplate.
Here, we have the example of a couple who can't agree on whether a pool is a sound investment. With $1.1 million saved and an estimated cost of $80,000, a pool would eat up a little under 7.5% of their portfolio.
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Spending your entire retirement nest egg on a pool probably isn't wise. Spending a portion of it is a different story.
Derilyn Freeman, a financial planner with Prudential Wealth Advisors, says, "If you were my client, I would tell you the question at hand is: 'Can you buy an $80,000 pool without it negatively affecting your retirement plans?'"
Since our couple covers most of their expenses with Social Security, they're probably withdrawing minimally from their savings. So the question is, what sort of pressure does the pool place on their nest egg going forward?