Factoring opportunity cost into major purchases?

[HI Bill]

My guess is that you also mentally considered the cost in remaining years and health. The next few years have a greater value for some purposes than those farther out.

Absolutely! I haven't been able to travel due to my wife's health issues, and had a friend die last year at 62, which is way too close to my age (58). To me, the largest failure would be to FIRE at 55, then die less than 15 years later. Spend and enjoy while you can! By 75, you're probably done with travel, and home improvement projects probably won't do much for you. Driving a Ferrari also probably isn't such a good idea, as well.

 

[RetiredHappy]

To me, the largest failure would be to FIRE at 55, then die less than 15 years later. Spend and enjoy while you can! By 75, you're probably done with travel, and home improvement projects probably won't do much for you. Driving a Ferrari also probably isn't such a good idea, as well.

Tell that to my 75/76 yo husband (76 this year). We still travel alot, 3 months out of a year and spread over 3 to 4 trips. We just had more projects done on our house by contractors. He would like to buy a Bentley and I would like to buy the cheaper brother of Ferrari, a Maserati, but neither will happen because we don't need fancy and fast cars anymore.

My point is life does not necessarily slow down at 75 yo. It is individual.

 

[FLSUnFIRE]

Tell that to my 75/76 yo husband (76 this year). We still travel alot, 3 months out of a year and spread over 3 to 4 trips. We just had more projects done on our house by contractors. He would like to buy a Bentley and I would like to buy the cheaper brother of Ferrari, a Maserati, but neither will happen because we don't need fancy and fast cars anymore.

My point is life does not necessarily slow down at 75 yo. It is individual.

Quite a few of my bike tour guests are in their 70s+. Lots of active people and many could pass for being in their 50's.

 

[Romer]

Cars are always an interesting question. Some have cars simply to go from point A to Pint B and don't care what it is. For others, the vehicle they have can bring joy just getting behind the wheel.

As others have stated, it is also about personal freedom to go where you want when you want. To pickup stuff and no your vehicle can handle the load from the Grocery store, Hardware store etc. To be able to drive your family around or pickup your kids or grandkids. To be able to go help your parents and in-laws when they need it.

I can understand the case for someone living in the heart of NY city not needing a car and being cheaper. Living in the suburbs of Denver that becomes much harder as I would rely on Uber.

My vehicles are part of my retirement toy set and bring me pleasure. No financial opportunity analysis will indicate these are a good move, BUT the life opportunity for what these do for me and where they allow me to go is worth it to me.

 

[RetiredHappy]

Diuplicate.

 

[RetiredHappy]

My ideal living situation is a 1000 sq ft home with a 10-car garage.

Right now we settle for a 3000sq ft home with a 3-car garage for 1 car and 2 golf carts

 

[Chuckanut]

Opportunity costs don’t have to be financial.

 

[TickTock]

^^^^^^^^

Very true! +1