Wednesday, September 21, 2011

Paying for Your Hobby

Have you ever considered the costs of paying for your hobby during retirement?  We recently came across some interesting numbers to help put this question into perspective for our readers. 

A 60 year old retiree, who plays three (3) rounds of golf per week, would need to set aside a lump sum amount today of $138,000 to cover their green fees over the next 22 ½ years.  This assumes that he or she pays an average fee of $36 per round, incurs a 4% inflation rate, experiences a 3% annual rate of return on the money saved and never loses any balls or replaces any equipment. 

These statistics are not only fun to see but interesting in their magnitude…..$138,000 for golf!  When you are seeking financial security in retirement, diligent planning is critical to your success.  Just think about how big the number would be if you lost a few balls along the way!

Source:  Center for Disease Control and BTN Research