Owning multiple homes can give you a great quality of life. Just make sure you think through the financial, logistical and emotional issues carefully and consider renting before you buy.
- Rent before you buy so you can really do your homework about the new area.
- Be realistic about the real cost of operating two or more homes.
- Make sure family distance is part of the equation.
- Being a permanent owner is not the same as being on a “long vacation.”
You have to know where you really want to go financially, or else you’ll never get there
- Smart investors and their advisors look at both the art and science of financial planning.
- The art side of it is about understanding how you feel, where do you want to go financially and what your future plans are.
- Knowing your balance sheet, you cash flow and your tax situation, are keys to financial success, especially from the scientific perspective.
Loaning money to family members is always a slippery slope. Before you write the check, make sure both sides are clear about how your hard-earned money is to be used and on what terms.
- When it comes to loaning money to a younger family member, make sure you and the recipient are clear about the terms of the loan and expected repayment obligations.
- When approached for a loan from a younger family member, it’s essential to understand if the money is to be used to fulfill a need or a want.
- A “family bank” loan can fulfill a younger person’s needs while teaching fiscal responsibility.
Social, mental, and emotional thoughts get stirred up with unexpected passing of a parent. Add to that the sudden receipt of money and most people are feeling extremely uncomfortable. Not only are you dealing with loss, you’ve suddenly got their home or maybe two homes. You have their personal property and all these different assets dropped in your lap.