This week, I’m talking about the decision to rent vs. buy. Anytime you’re contemplating a large purchase, you should always seriously ask: Does it make sense to rent instead? 

Today I’m talking about whether you should buy or rent a leaf blower. I don’t actually mean a leaf blower per se, but rather a whole group of purchases that can add up...ski equipment, household tools, power washers...you get the idea. 

In our self-sufficient, individualistic culture we live in, it’s natural to default to the buying decision when you need to power wash your driveway, or decide to upgrade your ski equipment. 

First of all, especially for seldom-used items like a power washer, it’s important to compare the cost of ownership with the cost of renting for 1-2 days a year which is probably all you’ll need it for. Then there’s the consideration of storage. Power washers, leaf blowers, ski equipment, all take up a lot of room. If it’s something you’re dead-set on buying, maybe it makes sense to go in with a neighbor, a friend, or a family member. You’ll halve the cost of ownership, plus it won’t always need to live in your garage either. 

When it comes to ski equipment or a golf club membership even...is the expense justified given your expected usage, or does it make more sense to rent skis when you need to or just pay greens fees at the public course vs. paying hundreds of dollars a month for the golf membership. You might make the decision anyways on the golf club membership - I certainly did - but that decision should be made weighing the cost with the expected usage, and seriously considering the other available options. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, rent or buy, rent vs buy, is it better to rent or buy, should i rent or buy

This week, I’m talking about the decision to rent vs. buy. Anytime you’re contemplating a large purchase, you should always seriously ask: Does it make sense to rent instead? 

Today I’m talking about buying vs. renting a boat. I love boats. When I was a kid, our family had a jet ski and some of my best summertime memories growing up were playing around on that thing. Then in college I worked at a summer camp on the puget sound for 2 summers, and I learned how to sail several different kind of boats. I also love canoes and kayaks...I just love being on the water. 

I’ve also heard it said that the best 2 days of boat ownership are the day you buy and the day you sell it. But the real question here is not whether or not a boat is a good investment. Anyone with any sense knows that it’s a complete money pit. 

The real question here is can you afford it? Do you understand all of the costs involved - with boats, there are storage fees, repairs, maintenance that is often expensive. 

All those costs need to be carefully calculated and compared to the expected usage. I would love to own a boat, but a couple things prevent me from doing so - #1: the hassle-factor. I don’t live on the water. I don’t have room to store the boat, so any time I would want to use the thing, it just sounds like a lot of work. #2: time constraints. I live in a part of the country where the boating season is about 3 months. Every day spent out on the water is a day that I couldn’t spend doing something else with my kids or be on the golf course, which is really where I prefer to spend my free time in the summer. 

So in reality, I just wouldn’t use the thing that much and it would be a total waste of money to buy one, especially since I could rent a boat a couple times a year for a tiny fraction of the expense and all scratch my boat itch. 

If you’ve been listening to these tips all week, you probably think I’m trying to dissuade you from making any large discretionary purchase, and rent instead. I think it would be bad advice to say you should never buy a 2nd home, an RV, or a boat, but I do think it’s very important to factor in the real cost of ownership along with your expected usage and the headache factor. If you can do that and still come out ahead on the buy decision, then buy the darn thing. But too many people make emotional decisions and don’t consider all the factors, which is what I hope you’ll be better equipped to do after listening to these tips this week.

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, rent or buy, rent vs buy, is it better to rent or buy, should i rent or buy

This week, I’m talking about the decision to rent vs. buy. Anytime you’re contemplating a large purchase, you should always seriously ask: Does it make sense to rent instead? 

Today, I’m looking at the rent vs. buy decision from the point of view of an RV. Now if I’m being honest, I would go out and buy an RV or some kind of camper right now if I knew my husband wouldn’t freak out and have divorce papers drafted in response. He wants a beach house, I want an RV, and unfortunately, I don’t think either of us are going to get what we want. 

Just like buying a vacation home, RVs can often be very expensive and sit unused for much of the year. One big reason why you wouldn't want to buy an RV is because it’s a depreciating asset. I read online that the value drops as much as 40% in the first 2 years - yikes! Then there’s insurance, interest costs to consider since most people take out a loan to buy the RV, storage fees, camping fees, the extra gas costs, etc. 

These all need to be factored in with the expected frequency of use. This is one area especially where I think it makes a lot of sense to rent, since you can also try out different types of RVs, get a realistic picture of how often you’ll actually use it before you drop $50,000 to 100,000+ on something. 

So if you have dreams of travelling the country in your camper trailer, just be sure that you calculate the true cost of ownership and your expected usage, to see if it might make more sense to rent when you need to and leave the headaches and depreciation for someone else to worry about. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, rent or buy, rent vs buy, is it better to rent or buy, should i rent or buy

This week, I’m talking about the decision to rent vs. buy. While it’s a dream for many of us to own a cabin in the woods or a beach house, anytime you’re contemplating a large purchase, you should always seriously ask: Does it make sense to rent instead? 

Today, I’m looking at the rent vs. buy decision when it comes to buying a vacation home. We live in Oregon, just over an hour from the Oregon coast. We go there a few times a year, and if you have been to the Oregon coast, it’s one of the most beautiful and scenic places anywhere in the world. I’m a little bias obviously, but between the cliffs, miles of sandy beaches, and famous giant rocks, you quickly see why no one really minds that you can almost never wear a bathing suit at the beach in Oregon. 

One of my husband’s dreams is to someday buy a beach house in Manzanita, OR. It’s a cute little beach town with an amazing pizza place, lots of cute little shops, miles of sandy beach, and the quintessentially Oregon legal pot shop. 

But a beach house in Manzanita isn’t cheap. My husband thinks if we owned a beach house that we’d go to the beach more. I say, let’s go to the beach more and then we can talk about buying a beach house. Vacation homes are a particular difficult decision when it comes to rent vs. buy, because the considerations are complex. And it’s often a massive investment up front and over time. 

You have the mortgage and the taxes and insurance, plus all the maintenance and repairs. Interest cost of the debt. I would hardly consider most vacation locales investments, because the housing prices don’t grow enough to justify it for investment purposes. Then there’s the decision of whether you’ll rent out your vacation home when you’re not using it - the extra wear and tear that will cause, and the net income after expenses that you can expect. 

And then there’s the big question, which I alluded to with my husband and our ain’t-gonna-happen Manzanita beach house. And that is the question of usage. Most people overestimate how much they will use a 2nd home. If you think you’re going to pack up and head there every weekend, or spend 6 months out of the year there, it’s best to try that out with renting first before you commit to buying. 

The point here is that the cost of ownership needs to be carefully calculated, and then you have to take it a step further and calculate your expected and realistic usage to see if it really makes financial sense and practical sense to buy vs. rent. If owning a 2nd home costs you $4000/week because of how seldom you spend time there, but you could rent a place that’s twice as nice for $2000/week and none of the headaches of ownership, you definitely don’t want to find that out after you drop six figures or sign up for a 30-year mortgage for that beloved Manzanita beach house. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, rent or buy, rent vs buy, is it better to rent or buy, should i rent or buy

Welcome to a new week and a new theme here on the One Minute Retirement Tip! 

This week, I’m talking about the decision to rent or buy. Anytime you’re contemplating a large purchase, you should always seriously ask: Does it make sense to rent instead? 

So this week we’ll be exploring the rent vs. buy decision when it comes to vacation homes, RVs, boats, and even that leafblower you bought last fall. 

Too often we don’t look seriously at the rent vs. buy decision, so this week I’ll help you think through the best option for you and how to think through the rent vs. buy decision of these big ticket items in a rational and thoughtful way. 

The key point with the purchase of any big ticket item is to remember that money is a limited resource, and that money used in one way prevents it for being used for something else. So it’s important that the purchase is a worthwhile one that considers not just the benefits of that purchase but the drain that the purchase will place on other resources, like your emergency savings, your expenses, and other things that your money could be used for instead. 

That’s it for today. Before you go, though, if you haven’t already left a review in Amazon or iTunes for the One Minute Retirement Tip, can I ask a favor of you to go do that right now? It just takes a few seconds and it helps to spread the word, and helps other people find this podcast. 

Thank you for listening and a special thank you to those of you who have already left a review. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, rent or buy, rent vs buy, is it better to rent or buy, should i rent or buy

It’s Sunday, which means...It’s recap time! 

This week, I talked about “would you rather” - retirement edition. We all have limited resources and with those limitations in mind, you’ll definitely need to make trade-offs in retirement.

Here’s what I covered in each episode this week:

• Would You Rather Sacrifice Kid’s College or Sacrifice Your Retirement?
• Would You Rather Take Twice As Many Vacations or Dine Out Twice As Often?
• Work Longer And Build More Wealth Or Retire Sooner But Live On Less Income?
• Would You Rather Die In 10 Years With No Regrets Or Die In 40 Years With A Lot Of Regrets?
• Leave your child with $10 million or leave your child with nothing but the memories?

Hopefully after listening to the One Minute Retirement Tip this week, you’ll be better equipped to make well-thought out and sound decisions about the important conundrums you’ll face when it comes to your own retirement choices.

If you missed any of these episodes or if you want to revisit any of them, you can find them on iTunes, Spotify, or Google Play by searching for the “One Minute Retirement Tip with Ashley”. 

Tomorrow, we are starting a brand new theme: Big ticket items - should you rent or buy? We’ll take a look at several big ticket items you might be contemplating in your retirement, and whether or not it makes better financial sense to rent or buy. 

That’s it for this week! Thanks for listening and I hope you have a blessed Sunday! 

My name is Ashley Micciche and this is the “One Minute Retirement Tip”.

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, 

This week, we’re playing “would you rather” - retirement edition. We all have limited resources and with those limitations in mind, you’ll definitely need to make trade-offs in retirement. By thinking about these conundrums ahead of time, you’ll be equipping yourself to make thoughtful and smart decisions when the time comes. 

Today’s “would you rather” question is: Would you rather leave your child an inheritance of $10 million or leave your child with nothing but the memories? 

Many parents who pass wealth to their children, seldom think about the consequences of what that inheritance will do to their children. If you have inherited wealth or know someone who does, it can be a blessing, but just as often I find it can be a curse. 

Money is powerful, and sudden wealth through inheritance or even winning the lottery can be problematic. You’ve probably heard the startling statistic that found that a third of lottery winners declare bankruptcy after winning the lottery. This leads a lot of people to scratch their heads, but to me, it makes perfect sense. Unearned wealth magnifies existing temptations and can produce new ones - addictions, gambling, frivolous spending on luxuries, etc. 

Unearned wealth very often makes people unproductive, and robs them of sound judgement and initiative. It has the power to create ugly side effects like greed, entitled attitudes, and it very often destroys incentives to work. 

While there’s no right or wrong answer to how much inheritance is too much, the sad reality is that few people think about the consequences of transferring wealth of any size to their children, yet it’s so vital to be thoughtful about how and how much wealth you transfer to your children, and should be done only when you’re confident that your children can handle the wealth responsibly. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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----------

Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, 

This week, we’re playing “would you rather” - retirement edition. We all have limited resources and with those limitations in mind, you’ll definitely need to make trade-offs in retirement. By thinking about these conundrums ahead of time, you’ll be equipping yourself to make thoughtful and smart decisions when the time comes. 

Today’s “would you rather” question is: Would you rather die in 10 years with no regrets or die in 40 years with a lot of regrets? 

Oh, boy this one is deep and gets to the heart of long life vs. quality of life. Personally, I would rather die tomorrow with no regrets then die at any age with a lot of regrets. But regrets are inevitable, I think, if most of us take the time to examine our lives and take a good look in the mirror at the self-centered and broken creatures we are. 

Bronnie Ware, an Australian palliative care nurse, wrote a book called The Top Five Regrets of the Dying. In the book she goes into detail about the common regrets she witnessed most often among her dying patients. Here they are: 

1. I wish I hadn't worked so hard.
2. I wish I'd had the courage to express my feelings.
3. I wish I had stayed in touch with my friends.
4. I wish that I had let myself be happier.
5. And the most common regret of all - I wish I'd had the courage to live a life true to myself, not the life others expected of me. 

What would your top regret be if you died today? It takes a lot of courage, thoughtfulness, and intention to live a fulfilling and meaningful life, and it is my sincere hope that you don’t have to choose between living 10 more years with no regrets vs. living 40 more years with a lot of regrets, but rather, that you live a long life with few to no regrets. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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----------

Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, 

This week, we’re playing “would you rather” - retirement edition. We all have limited resources and with those limitations in mind, you’ll definitely need to make trade-offs in retirement. By thinking about these conundrums ahead of time, you’ll be equipping yourself to make thoughtful and smart decisions when the time comes. 

Today’s “would you rather” question is: would you rather work longer and build more wealth or retire sooner but live on less income? As you might imagine, this is a very common trade-off that many of us face. If you’ve reached retirement age and are still in good health, you enjoy your work and could see yourself working another 5-10 years, that’s great. 

The bottom line here is that no one should enter retirement without the financial means to live comfortably - however you define that. Now that may very well mean that you retire earlier and make some sacrifices so you can sustainably live on less, and that’s okay. 

However, many people I talk with who are trying to decide what to do about working longer vs. living on less income need to be aware of a couple of traps: 

• First of all, if your motivation for retiring early is because you hate your job, your boss, your co-workers - basically trying to escape where you are right now, that is not a good reason to retire early, but instead maybe it’s an opportunity to consider other employment options or part-time work if you can afford to work less. Many people are so dissatisfied in their work that they would rather put a sharp stick in their eye than work one more day in their living hell, but don’t let your desperation cloud your judgement in making a good, rational decision that is going to have long-term ramifications for you.
• Ok, the other pitfall that I see people fall into with the decision to retire earlier and live on less is that they put themselves in a position of being constantly strapped for cash. The income you draw from your portfolio might support your monthly needs, but when people retire with just barely enough, there aren't any additional safety nets with cash savings or a larger nest egg that can support the new car you’re going to need in 3 years, or the new roof that’s due in 10 years, or the nursing home stay in 20 years that’s going to cost double what you’re drawing from your portfolio in the early years of retirement. 

Again, you need to make the decision that’s right for you, but the risk of retiring early and living on less offers more risk, less options and less flexibility, so if you’re leaning in that direction, be sure that you run the numbers, make sure you have enough cushion for emergencies, the occasional big expenses, and the inevitable curve balls of life. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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----------

Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, 

This week, we’re playing “would you rather” - retirement edition. We all have limited resources and with those limitations in mind, you’ll definitely need to make trade-offs in retirement. By thinking about these conundrums ahead of time, you’ll be equipping yourself to make thoughtful and smart decisions when the time comes. 

Today’s “would you rather” question is: Would you rather take twice as many vacations or dine out twice as often? 

Ah, the dilemma of how to spend your discretionary income and your free time in retirement. What is more valuable, fulfilling, and fun - more travel or more eating out? 

This is a personal decision obviously that is going to be different for everyone, but like many other lifestyle choices in retirement, it’s one that needs to be carefully considered, since most of us just don’t have the means to do whatever we want, when we want. When it comes to how we spend money, it’s vital to our life satisfaction that we spend it in a way that is consistent with what we value. 

Personally, I enjoy travelling and visiting new places, but I would have to go with eating out twice as much over travelling twice as much. Many of you listening probably think I’m nuts and would choose travel over eating out, and that’s why it’s so important to be thoughtful about the choices you make in how you allocate your discretionary funds in retirement, ensuring that where you spend your money is contributing to your happiness and fulfillment, and your not just flushing your money down the drain by spending it on things that don’t actually matter to you all that much. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast,