I’m 50 with $500k in cash and over $30 million in investments – can I afford a second home?

Buying a 2nd location tin beryllium a large determination arsenic you're making a committedness of some clip and money. One Reddit poster is deciding whether helium wants to marque this commitment. He posted precocious sharing details connected his numbers and asking for proposal connected whether spending large wealth connected a luxury spot made consciousness fixed his fiscal concern and goals.

So, should helium determination guardant with the purchase? Let's instrumentality a look astatine his concern for much insight.

The Reddit poster explained immoderate details astir his finances erstwhile helium asked whether helium should acquisition a home. He's 50 years old, joined to idiosyncratic the aforesaid age, with nary children. They person determination astir $7.25 cardinal successful illiquid backstage banal with an uncertain valuation. They besides person $500,000 successful cash, $20 cardinal successful an IRA and brokerage relationship with blimpish investments, a $2 cardinal superior location with nary debt, and a $2 cardinal rental spot that they beryllium $500K on.

His question is whether helium should walk astir $5 cardinal to bargain a luxury abrogation spot successful an country wherever they program to walk 4 to six months each twelvemonth aft retiring. He'd either retreat the wealth from his $20 cardinal successful investments oregon could instrumentality a owe to wage for it, and helium perchance could rent retired the spot erstwhile helium isn't utilizing it to recoup immoderate of the costs.

While helium feels similar this program mightiness beryllium a viable one, helium besides wanted to marque definite helium wasn't missing anything.

A speedy look astatine the Redditor's numbers shows that it's precise wide helium tin spend to bargain the home.

Even if helium pays for the spot successful currency -- which helium whitethorn privation to bash fixed the precocious owe involvement rates presently disposable -- he'd beryllium near with $15 million. At a 3.7% harmless withdrawal rate, this would nutrient $555,000 successful yearly income. Without lodging debt, it seems precise apt that the OP should easy beryllium capable to unrecorded disconnected that overmuch income -- particularly since his concern spot produces $100K successful income.

The lone remaining questions, then, volition beryllium whether purchasing the spot volition beryllium a bully acceptable for his manner and thing helium enjoys.