Personal Finance

My wife and I are about to retire with no debt and no kids - can we afford to splurge on a $100k RV to see the country?

Joey Frenette

Published: December 1, 2024 7:15 am

Sometimes, it’s the meaningful life experiences with family that can pay the biggest dividends. Undoubtedly, provided one is in great financial shape, as this couple who took to the r/ChubbyFIRE subreddit is, a splurge not only makes sense but could be a good move for those who value creating memories that last a lifetime. Of course, such big-ticket expenses need to be thought out and planned.

At the end of the day, rushed impulse purchases may not bring nearly as much happiness as one may have thought prior to hitting that buy button. Indeed, it would be a real shame if one made a big purchase and wasn’t able to get the most out of it. For many who don’t know what the RV experience is like, renting could trump buying. However, when it comes to this couple seeking the ultimate “feel good” purchase, I do think an RV buy can fit in the budget, given the massive nest egg ($4 million worth of savings), zero debt, no dependents to look after, and a home that’s mortgage-free.

Though I’d suggest everyone crunch the numbers with a bit of help from a financial adviser, I do think they do not have all the answers, especially when it comes to such discretionary purchases. Either way, the couple has a wealth planner, and, as you’d imagine, they’re not exactly aboard with the idea. Of course, splurging on a top-of-the-line RV isn’t the most prudent of financial decisions, but if traveling the country is one’s dream, the financial sacrifice could be more than worth making.

In any case, here are some quick notes that someone in a similar situation should consider before making one of the biggest purchases of their golden years:

Key Points About This Article

• Spending a six-figure sum on an RV seems absurd. But isn’t that what chubby FIRE (financial independence, retire early) is all about?
• Buying an RV can make sense for some. However, the hidden costs and renting are also worth thinking about.
• Also: Take this quiz to see if you’re on track to retire (Sponsored)

Consider those “invisible” expenses.

If the six-figure sticker price on an RV isn’t offputting enough, perhaps the maintenance costs, depreciation, RV park fees, insurance, fuel, and more could be for some with a stricter budget. Undoubtedly, an RV may be a great asset to invest in experiences. However, it’s a depreciating asset and liability that one will need to really need to crunch the numbers with. Given that the Reddit couple already has a wealth planner in place, I’d say it’s likely that the numbers have already been crunched, and the couple is still set on proceeding with the purchase.

While all expenses that could arise won’t derail the retirement plan (a $4 million nest egg is tough to crack, even with the occasional splurge), I do think the trade-off between flying in and staying at a hotel alternative should be considered. Indeed, traditional travel isn’t all too expensive these days, especially with the modest cost of budget airfare. Also, there are no hidden costs beyond the sticker price!

Of course, the traditional travel experience just isn’t the same as road-tripping across the country in one’s own RV. Indeed, it is like a home on wheels! If the couple is serious about frequent travel and upscale accommodations, perhaps the RV could make more sense than the airfare and hotel stays that are sure to add up in any given year!

There’s nothing wrong with renting an RV

Finally, I think renting an RV would be the more responsible financial decision. That is, of course, the couple is keen on getting every last mile of excitement out of it during the so-called go-go years of retirement.

In any case, weighing the rent vs. own trade-off is worth considering, especially since some may grow tired of RVing after a few weeks or months on the road, with no intent to do it again over the medium term. In such a scenario, one could find themselves selling an RV at a hefty loss.

Either way, the risks of renting are far lower. But for those who are serious about living the RV lifestyle for the long haul, owning can be the better financial move. In any case, if you’ve got a chubby FIRE, you’re entitled to make the odd splurge so as long as it doesn’t weigh too heavily on your nest egg! As always, try to get the blessing of one’s wealth planner before making the plunge!