7 items retirees buy, but almost always regret

After working so hard for most of their lives, when they retire, Thousands of Americans think it’s time to spend wealth that they have saved on many things that they wanted and could not acquire before.

However, without proper financial planning and budgeting, this can sometimes lead to a disastrous combination.

If retirees overspend immediately after leaving work, they may fall short in their later yearseven for the most basic needs.

According to the site GoBankingRatesHere are some of the purchases retirees almost always regret:

1.- A big house

Generally speaking, that is actually the worst time to buy a bigger house or add to the one you already have. If you have children, they have most likely moved out of the house, so occupying and maintaining a large house will be more complicated.

When a retired person decides to buy a bigger house, they usually they don’t take into account that all their other expenses will increasefrom your property taxes to your heating bills to your maintenance costs.

2.- Many trips

Many older Americans have travel on their mind when they finally retire, and it’s a great way to fill their time. However, if you spend a lot of money on a round-the-world cruise for two when you retire, could be harming your future financial well-being.

Not only will that money be gone immediately, but you’ll also lose up to 30 years or more of ROI on that cash.

3.- Expensive gifts

Those who are generous in mind and spirit may see retirement as a time to spend on nice gifts for friends and former co-workers. While tokens of appreciation are always in good taste, it is important to balance kindness to others with preserving your financial well-being.

Feel free to be generous, but keep your gifts within reason.

4.- Expensive cars

Expensive cars fall into the “earned it, so I’m going to spend it” category when it comes to retirement. While it’s completely understandable to want a comfortable car when you retire, you’ll need to balance costs with your budget.

Remember that an expensive car is an ongoing expense, not a one-time purchase. Additionally, luxury cars tend to have higher maintenance costs, higher insurance premiums, and higher fuel costs, since many require premium gasoline.

Also, luxury cars tend to depreciate quickly.

5.- Online purchases not necessary

If you’re prone to late-night TV requests for “only available on TV” products, or if you spend a lot of time on the computer visiting shopping sites like Amazon, you may be spending a lot more.

Usually the items that people buy when they are bored tend to be non-essential and pitiful.

6.- Additional Insurance

It’s important to have insurance as a retiree, but spending too much on insurance you don’t need is wasteful and may be an unnecessary waste of your savings. Life insurance is a great example.

Working adults typically purchase these products so that their loved ones are covered in the event the breadwinner dies prematurely. But after retirement, the children are likely to have completed their education and are out of the house, and the mortgage on your home is likely to be almost or fully paid off.

7.- A vacation home

A vacation home is a fun way to spend time with friends and family, but it’s often a purchase retirees regret. The main reason is because will drastically increase expenses.

Second homes also tend to have more unfavorable tax consequences. Over time, you may find that you don’t even use your vacation home as often as you thought, as you now have the freedom to travel to more places.

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