I'm 54 with $300,000 on top of retirement savings. My wife wants a vacation home. I want to invest it. Who's right?

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Have you always wanted a vacation home – say, in a beachy spot where you can spend the summer enjoying life by the sea? Or are you more focused on having as much money as possible in your retirement fund?

Imagine this scenario. At 54, Tony and Amelia have done what many people struggle to achieve: They've built a solid retirement foundation, and they even have an extra $300,000 to work with, beyond what their retirement savings goal was at this point.

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But instead of feeling like freedom, that money has become a point of contention in their relationship. Amelia has been dreaming of a luxurious vacation home that can be filled with family memories and weekend escapes. She wants to use this extra money as a down payment on that dream, while Tony's focused on growing that money into an even stronger, more secure retirement.

It's a classic midlife financial standoff, and it's one where both sides have a legitimate case.

Invest for tomorrow or spend for today?

From a strictly financial perspective, keeping the money invested could be seen as the more stable path. Compound growth can significantly increase your retirement savings and expected income over the next decade or two. According to Fidelity, the average 401(k) balance for people aged 50-54 is just under $200,000. (1) With that in mind, if you're not fully on track to having several times your salary saved for retirement by your early 50s, prioritizing investments can help close the gap and reduce future stress.

There's also flexibility to consider. Market investments can be rebalanced, drawn down gradually or adjusted as your needs change. A vacation home, on the other hand, locks your money into a single, illiquid asset that may be hard to sell, especially during a market downturn. Add in ongoing costs like property taxes, maintenance, insurance and unexpected repairs, and the real price tag can climb up pretty quickly, according to AARP (2).

But Amelia's argument could indicate a different philosophy about money. A second home can double as both a lifestyle upgrade and a long-term asset, with potential appreciation and even rental income if managed well. Aside from the potential financial benefits, a vacation home can also become a central gathering place for family and a place to make wonderful memories, something that's hard to quantify but is deeply valuable over time.

So how can Tony and Amelia come to a decision?

Read More: Non-millionaires can now hoard property like the 1% — how to start with as little as $100

How to decide without derailing your future

If you're stuck in a similar stalemate, the goal isn't to "win" the argument but to pressure-test the decision from both angles.

That’s where outside expertise could make a meaningful difference. A financial advisor can help strip emotion out of the equation and focus on the bigger financial picture, helping you reach a middle ground that’s financially sound.

For those with portfolios of $250,000 or more, getting advice from a professional financial advisor can help reduce potentially costly mistakes — and if you’re putting that money aside for retirement, you almost certainly want to be extra careful.

You can find vetted professionals who specialize in this kind of planning through platforms like WiserAdvisor.

Here’s how to get started: Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals. That way, you can make sure that their advice fits your goals.

Note: WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

Make sure your retirement is on track first

If that $300,000 plays a key role in closing a savings gap, investing should take priority. A home shouldn't come at the expense of long-term security or force you to scale back later. In Tony and Amelia's case, this isn't an issue for them, so they don't have to worry.

Aside from considering an advisor, Tony and Amelia could also build out an emergency fund. That way, if something big happens, they have a bit of money packed away to absorb a sudden medical emergency or unexpected job loss. Shaving off just a little bit of the $300,000 now could give them security later.

After this, the couple might want to get that money working for them in the market. Although working with an advisor is one option, investing independently through a self‑directed retirement could be the next step for making use of that $300,000, minus the bit siphoned off into an emergency fund.

With IRA Financial, you can use a tax‑advantaged IRA or Solo 401(k) to invest in alternatives and public markets, all in one place, while staying compliant with IRS rules.

IRA Financial gives you the freedom to invest in alternative assets like real estate, private equity, precious metals, and crypto within a self-directed retirement account. And now you can add real-time, public market investing, powered by Interactive Brokers, a trusted global brokerage.

For the first time, you can manage both traditional and alternative assets seamlessly within a single self‑directed retirement structure, all for a flat fee.

Complete the application online in minutes to open your self‑directed retirement account with stock trading access powered by Interactive Brokers.

Run the full cost of ownership

If you’re committed to real estate, a vacation home or second property isn’t the only option.

Besides, the purchase price isn’t your final bill for a home: Remember to factor in taxes, upkeep, insurance and potential vacancy periods if you plan to rent it out. Second homes often cost more than expected, especially over time.

The ongoing costs of homeownership aren’t cheap either. According to a recent Bankrate study, the average U.S. homeowner spent roughly $21,400 a year in 2025 on maintenance and other hidden costs (3). Depending on whether you hire a handyman to fix things or not, you could also be looking at midnight maintenance calls over burst pipes at your vacation property.

If you wish to dip your toes in real estate investing but don’t want the added financial burden, platforms like Arrived let you buy stakes in rental properties and vacation homes, earn dividends, and skip the responsibilities of property management.

Backed by world-class investors like Jeff Bezos, Arrived’s easy-to-use platform offers you access to shares of SEC-qualified investments in rental homes and vacation rentals for as little as $100.

To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation.

Arrived distributes any rental income generated by properties to investors monthly, allowing you to potentially set up a passive income stream without the extra work that comes with being a landlord of your own rental property.

The best part? For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match.

Those looking to further diversify their portfolios may also consider private real estate platforms focused on income-producing properties in different verticals.

Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.

With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.

Consider opportunity cost

Money tied up in real estate isn't growing in the stock market. Over time, that trade-off can meaningfully affect your retirement income and flexibility (4).

Test before you commit

What if you try renting in your desired location for a season or two? This can help you decide whether ownership is really worth it without locking in a costly decision you may later regret.

Talk through the "why"

Beyond the numbers, each person likely has a deeper motivation. Whether it's security, legacy or quality time, getting clear on that can make compromising easier.

Look for ways to compromise

You don't have to go all-in on one option. Some couples split the difference, investing most of the money while setting aside a smaller portion for lifestyle goals, or delaying a purchase by a few years while savings have time to grow. Perhaps Tony and Amelia could still get a vacation home without having to put a full $300,000 down – by either agreeing on a different amount to put down or even looking into lower-priced vacation homes.

In the end, the real question for Tony and Amelia is about how they want their life to look in the years leading up to and into retirement, and whether they can build a plan that supports both security and enjoyment along the way.

— With files from Jessica Wong

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Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Fidelity(1); AARP(2); Bankrate (3); Kiplinger (4)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.