08/25/2026
Buying a Second Home in Retirement… or Just Travel More?
A second home is a common retirement goal. But is it always the best use of your retirement dollars?
Consider a simple example:
You could buy a $450,000 second home and potentially spend another $15,000–$20,000+ per year on property taxes, insurance, HOA fees, utilities, maintenance and repairs.
Or… you could keep that $450,000 invested and use some of your retirement income to take 3 great trips every year.
Here’s where the math gets interesting.
Assume the home appreciates at 3% per year while a diversified investment portfolio averages 7%.
After 20 years:
🏠 $450,000 home at 3%: ~$813,000
📈 $450,000 invested at 7%: ~$1.74 million
Of course, investment returns aren't guaranteed and neither is home appreciation. But there’s another factor that doesn't show up on a spreadsheet:
Freedom.
Instead of returning to the same second home every year, you could spend one year traveling through Spain, the next in Hawaii, the next in Italy, Scotland, Alaska or wherever retirement takes you.
You also don't have to worry about a second roof, HVAC system, water heater, insurance policy or an unexpected repair while you're 1,000 miles away.
And travel spending is flexible. If you want to travel less later in retirement, you simply spend less.
A second home's expenses don't necessarily work that way.
There isn't one right answer. If you love a particular location and plan to spend several months there every year, a second home can provide tremendous lifestyle value.
But if the goal is simply “I want to enjoy retirement and see more of the world,” buying another property may not be the only—or best—way to accomplish it.
Retirement planning isn't just about accumulating money. It's about deciding what you want your money to allow you to do.
Would you rather own the second home or take the trips?
