You spent your entire career working toward the day you could afford to live without worrying about a constant cash flow. Once you’ve established that lifestyle, aka retirement, you decided you would go all out, buying the most lavish, luxurious items you could get your paws on. Is this method of living the best kind to follow after tirelessly saving and investing for years? Or should you avoid certain purchases to prolong the longevity of your money? We’ve produced an article pinpointing unnecessary purchases retirees make that wipe out retirement funds. 

1. New Car

The allure of a new car sings to you. Heated seats in the winter, a computerized system that can drive itself. All those days spent learning how to drive a stick fade into oblivion with these self-driving models. Each time you drive past a dealership, the priciest, newest model catches your gaze like a long-lost love. 

The day you turn into the dealership, you plan to purchase a new model. However, as soon as you drive that car off the lot, its value dips and the insurance cost catapults. New car owners end up paying an exorbitant amount of money for high-tech systems and needless upgrades. 

2. New House

Houses and cars both operate under similar margins. A house might increase in value post-purchase though the entire act of purchasing a new home in retirement might border on the silly side. In situations where the house needs a lot of repairs or refurbishments you might want to stick to your current living situation to save thousands, maybe even millions. Owning a home bears potential benefits, yes. But do the benefits outweigh the money required to maintain the house? 

3. Boat 

You’ve spent years drooling over a bodacious boat, one boasting prime features for a glorious summer spent fishing, hanging out with grandkids, and cruising down the bay. Where do you live? Assess how practical the boat purchase is based on your location. For example, it doesn’t make much sense to donate millions of dollars to a boat if you live up north, where cold winters prevent you from sailing for over half of the year. If you live in southern climes, it makes more sense to buy a boat, though they aren’t cheap!

4. RV

How often do you camp? Prior to making any extensive purchase, overview the practicality of said purchase. Are you opting for an RV because you’re tired of driving an SUV up to a campground? Do you plan to downsize from a house into a recreational vehicle in an effort to see the world? Or, do you hope buying an RV expedites your life-long dream to camp? Lots of retirees complain that they regret purchasing expensive RVs because they didn’t get their money's worth from them. 

5. Adult Children

We all love our children. How could we not? But, there is always a time in a (grown) child’s life when they should stop relying on their parents for financial support. Groups of retirees drain their retirement savings by giving their adult kids thousands of dollars for down payments on houses or cars, not thinking about their future as retirees. Setting the boundary is difficult yet necessary. 

6. Timeshare

Timeshares succeed as the biggest scam in the marketplace. I sat through a timeshare meeting the other day, wanting to receive the gifts they promised me. I emerged unscathed. Others didn’t enjoy the same fate. The majority of people in the meeting room were older, as timeshares workers employ scare tactics to trick vulnerable crowds into buying an unneeded product. 

Timeshare employees almost coerce potential customers into committing thousands of dollars to a shared vacation space over multiple years. Save your money for a space with year-round access. 

7. Eating Out Often

Dining out is a luxury. The ingredients used in kitchens are the same as those purchased in the grocery store, yet chefs curate a delicious dish and upcharge the price, causing the customer to overpay for convenience. And it works! We find ourselves stuck in a rut of eating out, wasting money when we could cook or subscribe to meal services to save money and reduce waste. 

8. Excess Travel

Traveling comprises a huge part of retirement for many. How much travel can one retiree afford? That depends on a few factors like the retiree’s fund, their interest, and the point of retirement they’re in. 

Planning travel helps alleviate worries, contributing to an expanded worldview with unbeatable experiences. Booking trips on an impulse can have a detrimental effect on one’s retirement fund. Like anything, ensure your fund holds enough money to support the itinerary and support your lifestyle at home. 

9. Remodeling Homes

Housing remodels clean out bank accounts. Chances are, where you find one issue, you’ll find another, especially when it comes to older houses. During appraisals, some people trust the worker, encouraging them to fix every issue popping up, inflating the price. Act on needed major repairs; do without fixing the minor issues to save money. If it won’t harm you. What’s the point of paying extra?

10. Unneeded Insurance

Today, it seems every company extends some form of insurance. Insurance on Spotify, car insurance, home insurance, and insurance on your upcoming vacation. Insurance protects customers from harm or unwanted expenses, still certain kinds of insurance demonstrate little use. Wait to purchase insurance until you read all about it and seek outside advice about the kind of insurance.  

11. Phone Bill

Do you pay a lofty amount for phone service? How much of that service do you use? Hundreds of people report they overpay for their phone service without knowing all they pay for. Always review the fine print on devices and show no fear when downgrading. 

Phone bills rack up hundreds of dollars quickly. Avoid that by reading the fine print and demonstrating zero remorse or fear with the phone company. Plus, phone companies flex their ability to target customers they think will pay higher prices for useless services, similar to timeshare workers. 

12. Jewelry

A surefire way to wipe through a lifetime of savings includes buying a fancy piece of jewelry. I understand the need to bedazzle up appearance with glamorous gems and accessories, though I can’t get behind the idea of paying the same amount of money for a ring or necklace as a house or car. Perhaps invest the money in another account, trying to grow the funds in lieu of disposing of them. 

13. Scams

Unfortunately, society has developed a system that pinpoints older individuals as cash barrels. Branching off overpaying for insurance, I knew someone who worked in a firm selling older people fake insurance packages. They capitalized on the customer’s vulnerability, a nasty yet common tactic utilized in business. 

I knew another person whose grandma responded to an email scam asking for a money transfer. A few scenarios cause this scam. One is greedy, vile people hoping to earn money from people. Another one is people who need money tricking older people into helping them. Always seek outside opinions about these “business” inquiries. 

14. Impulse

Like the look of that jacket? Why not throw it in the cart? Add it to the tab. After a day of shopping, you peek back at the receipt, gasping at the damage to your bank account. An excellent way to combat impulse purchases is the two-day rule. If you see something you like, meditate on it for 48 hours. After the time period passes, if you still yearn for the item, go ahead and buy it. Take a little longer with travel and large purchases. 

15. Retail Therapy

Remember the last time you had a bad day? Did you cheer yourself up by heading to the nearest mall to fix sadness with material gain? Retail therapy presents a quick fix to sadness or heavy emotions, although the root of the issues pops back up hours after you check out. Retirees indulging in retail therapy end up doling out money they may not have on things they don’t need. An alternative for retail therapy includes meditation or expressing emotions through a creative outlet.