At what stage to enjoy your money?

Question

My father died recently and it got me thinking to sell my house.

I'd net around 750k and enjoy more of the things I'd envisioned doing when I bought this house 13 years ago. I'm 58 now and in OK health, so I could do the things that involve being mobile and some energy.

So I've been rocking around the 'sell -v- wait for price increase -v- unknown amount of time alive  etc...    and I find it no easy thing to come up with a decision.

But one thing I have noticed is that sometimes, people just seem to hang on far too long. Many people think they will live lives of good health and into their late 80's and beyond. All the while not really doing anything to proactively stay fit and healthy.

And so many stories of people retiring only to pass away shortly after.

At the moment I have 2 friends thinking over the same predicament.

One is 72, He's got enough equity in houses to live until he's about 300. Has a lot of stress off tenants, has things he wants to do. Has a medical condition related to stress that he says is due to tenant aggravation. He says he's going to make changes in a couple of years and then enjoy life? His brother just passed away mid 60's and had planned to retire in a couple of years.

Another friend has a job that will give him a good pension. But he hates the job, could sell his house now and net enough to retire, move to a smaller town. But he's hanging on for the pension. He's already lived 6 years longer than his father did, and his wife's had cancer twice.

It's a tricky one.

Sebastian Marroquin · Answer

I'm with @Ujwal Velagapudi on this one.

You have much more life experience than I do for sure. And a lot of moving parts for you and your 2 friends. I know that it's easy to think like this when life happens and you have something catastrophic happen to you or someone you know and for that reason, I would say, sit down and really think about it and give it some time for 'it' to settled in. The worst time to make a decision is when going through fear, stress or uncertainty. The fact that you posted on here tells me that you are thinking about it and willing to get other perspectives.

I think we all think about this one way or another. I've had the money to buy my new Tesla for about 5 years now...  :) and haven't bc I want to do other things with that money.... But I try my best to enjoy life in other ways.

There is a podcast called : Love Your Life

Everything on it is about enjoying life now: and that does not mean that you will sell your home and travel the world or spend it on cars... not at all, but it does mean that you will have to have a serious, honest, and raw conversation with yourself and ask yourself:

1. What makes you happy? What would make you happy now? and what would make you happy later?

In the podcast the host says describes how we often go after the shiny penny (any goal imaginable) because we think that the "car" the "house" the "investment" the "money" will make us happy. and in fact what we have to do is be happy first, be happy now and then go after the things or people or situations we want.

She says: where ever you go, you take yourself with you.

if you are an unhappy person : getting the car will only make you happy for a few mins. and then you will go back to being the unhappy person you always have been.

When it comes to the market: there's cycles: It goes up and it goes down :)

When it comes to selling: you can sell and buy smaller homes that can sustain you or not buy and live off of the cash...

Those are technical things that a good realtor can help you with.

I would suggest you make a list of what avenues you can take to re-invest portions of your net profits and how passive or active you want to be with those investments. There are many, many options out there that can benefit you depending on how involve you want to be.

First decide what path you want to take?

Decide what makes you happy?

Decides how you will add the things that you like through out the day that will add the zest you seek in all things. (think hobbies, think your favorite coffee, think favorite people to be around)

Focus on positivity, on being kind, on being happy and the rest will come!

April Munoz · Answer

A recent article by the Nation Association Of Realtors revealed that in September, If I recall correctly, the average home price increased at a rate greater to that of the average salary increase.

Meaning that home prices are going up faster than that of what people are actually getting paid. If this trend continues then there is going to be a surplus of inventory because people wont be able to afford the homes and simple economics state that when there is an increase in inventory, prices will come down.

Now take into consideration all those who lost their jobs do to the pandemic and had to go into forbearance. Once forbearance ends the banks will determine if they are eligible to push those payments owed to the end of the loan. (That's if their bank is doing that in the first place).

If they are not eligible then they are going to have to come up with a lump sum of money owed or spread the amount owed over a specified period of time on top of their regular monthly payments.

Not everyone is going to be eligible and not everyone can afford the lump sum or additional payments.

When that happens there will be even more inventory. People facing foreclosure may have to settle for reduced sale prices in order to sell quickly others may have to do short sales. Both of which will decrease the value of the homes in that area.

Right now homes are selling at a Premium, At least in my area. Will it be like that next year. I don't know. I can only go based off of what the data shows and hope for the best but plan for the worst.

Ujwal Velagapudi · Answer

I've always believed I should be in a constant state to enjoy. Not putting it off till tomorrow for a finite moment (retirement), but that I do things on a daily basis to enjoy the fruit of my labor. Also fortunate that little things make me happy, and it's not a financial burden to sustain it.

Just based off your post, enjoy every second. Sell it, that amount is plenty enough to live well & invest it into something else. I don't think anyone's ever regretted living life and enjoying their time here (reasonably), but I'd bet plenty have regretted not quitting sooner, trading work for life, or just other alternatives to enjoy what they truly wanted in life.

Personally, if possible, I'd find that happy medium where you can still make $$ to enjoy everything but still make enough to support that lifestyle and possibly grow your net worth simultaneously. i think that's kind of what a lot of BP'ers strive for, that passive income that exceeds their desired lifestyle expenses while working a minimum, w/less stress.

Forrest Faulconer · Answer

Hey @Dave Fairb, as a young man, you bring up some great questions. I too battle with the idea of retiring at an age where I am no longer able to enjoy the things I enjoy in my thirties. This is why I want to keep my expenses low, invest wisely, and reach financial freedom as young as possible. I want to enjoy life while I still have the energy and strength to do so. That is my dream.

Forrest Faulconer

At what stage to enjoy your money?

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