The last few years over the summer, my family rents a house on a quiet Michigan lake—a week filled with laughter, shared meals, and memories that tie us closer. As a wealth planner with over 30 years of experience, I can now afford a second home. But I keep asking myself, and maybe you’re wondering too: should we buy a vacation home or keep renting? It’s a question that blends dollars with dreams, and I’d like to share some thoughts to help you find your answer.

Growing up, my parents rented summer homes in Michigan, and those days by the water shaped me. The joy of family togetherness led me to Western Michigan University and still draws me to rent there today. But I also carry lessons from two real estate stories.(1)  In 1985, my mom considered a $10,000 lot in Tierra Verde, Florida, now worth $530,000—a 10.44% annual return over 40 years.(2)  A missed chance? Maybe not. That same $10,000 in an S&P 500 index (3) would be $868,891 today—a 11.67% return.(4) Then there’s a client who sold a New Buffalo, Michigan home in 2011 for $358,000, now valued at $1.1 million (8.35% return).(5) But the S&P 500 over that time? Over $2.2 million, a 13.45% return.(6)

The numbers suggest renting and investing the difference often makes financial sense—more flexibility, less upkeep, and stronger growth. But a vacation home isn’t just an investment. It’s a place for grandchildren’s visits, family traditions, and quiet evenings. Owning means consistency but also commitment. Renting offers freedom to explore new places. The real question is: what will enrich your life most—stability in one cherished spot or the adventure of variety?

For over 30 years, I’ve helped families like yours make decisions that honor both their wealth and their values. A vacation home may be the perfect choice, or renting might free you to live more fully in other ways. I’d love to hear your thoughts and help you weigh this decision in light of your retirement dreams. If you’re wondering about your own “lake house” question, reach out to us. Let’s talk about what matters most to you and your family.

(1) For illustrative purposes only. Information does not represent any specific investment, yield or return or the experience of individual investors. This information does not constitute a recommendation to invest in any particular asset class or strategy and is not a promise of future performance or an estimate of actual returns an investor's portfolio may achieve.

(2) https://www.zillow.com/homedetails/408-7th-Ave-N-110-Saint-Petersburg-FL-33715/2053322928_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare

(3) S&P 500 Index is a capitalization-weighted index calculated on a total return basis with dividends reinvested. The index includes 500 widely held U.S. market industrial, utility, transportation and financial companies.

(4) Hypothetical Portfolio Illustration: (Retail) 01-01-1985 to 05-31-2025

(5) https://www.zillow.com/homedetails/123-E-Mechanic-St-New-Buffalo-MI-49117/120517669_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare

(6) Hypothetical Portfolio Illustration: (Retail) 01-01-2011 to 05-31-2025