Can you help me with some math?

#1

Hi,
I’ve missed you guys. Not planning vacations has been hard.

Last February, right before the start of the zombie apocalypse, when the only place I wouldn’t consider traveling was main land China, I bought into DVC. I bought at AK for $139.

Since there’s been a death in the family that has affected my financial situation. I can make the payments, but it’s tight enough that it may not be a good idea.

In other news, as we’ve all been reading, maybe seeing first had, Disney is cutting out many of the things that made the bubble the bubble. For the same money I could stay at a pretty nice hotel, pay only when I’m visiting, and feel like the only thing I’m missing is a view of the zebras.

On the other hand it may be just as magical by the time I actually go. Davids DVC can help offset some of the loss if they can rent my points.

Do I sell at an approximate 4K loss before fees, after paying for a year and not using my membership? (AK seems to be selling at about $120.

I’d be grateful for some perspective.

#2

I am sorry for your loss.

My gut instinct based on the information you provided is you should sell. A few things.

First, it sounds like you financed this (“I can make the payments”) rather than paid for it fully (other than annual dues). That alone generally makes it a less than ideal financial investment.

Second, if money is tight, then you throw in the added cost of a trip itself (tickets, food, etc) the question is you’ll actually be able to go as much as you hope.

Third, you can actually save a LOT of money staying off property while not having to commit money to your DVC. I get the appeal, but we also have to “live within our means.” I have almost always stayed off property for this reason!

Fourth, I think you already know the right answer, but the loss of the DVC can feel like added heartache. But your words: …it may not be a good idea.

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#3

Not to mention feeling like I’m throwing 4000 away.

#4

You’re not throwing away $4k, you are getting back years of future payments ($Xk) that can be used for anything you need at the time, rather than being pre-obligated to Disney.

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#5

I think you’re right, but… Yeah.

#6

I get the feeling for the $4000. We have had circumstances where we essentially threw away our money at times. It can be painful! But don’t let that hinder you from making the wisest financial decision for your foreseeable future.

I will say that this advice is limited on what information you provided. If I were close friends with you, I might go into all kinds of budget questions, such as if you are living paycheck to paycheck, if you have other unsecured debts, if you have a sufficient emergency fund, if your vehicles are paid, and if they might be due to repairs or replacement soon, etc. I won’t ask them, but they are things that play into your decision as well.

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#7

All good questions. I guess the answer is I’m actually not sure what my financial situation is or will be once probate is done, I sell the house, buy an apartment. And I don’t know how long probate will take.

The person at the bank so advised my uncle on his ira doesn’t think my situation is that dire. He doesn’t seem to have the same anxiety about debt that I do. Of course it’s not his debt.

One of the things I keep thinking is that interest rates are very low now, so maybe instead of selling I should look for a lower interest loan.

#8

I would consider renting your points (even privately) to generate the funds and buy you some time.

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#9

Awesome. If you don’t feel comfortable arranging it directly, we could probably have a broker as an intermediary.

#10

You can use a broker but you will get less money.

#11

I’m with this.

I’m so sorry for your loss, and right now I would strongly suggest to AVOID making any grand decisions unless absolutely required. I’m sure everything feels really unstable right now and anything that would create a bit of security, especially removing a monthly payment, is super tempting. And to make matters worse, things will come at you fast and furious for a bit. Probate takes roughly 6-9 months, if there’s no issues. It’s a frustratingly slow process.

If you can rent your points for a bit, that’ll allow you to give you a bit of breathing room to really decide what is right for you. A $4000 wash is nothing to sneeze at and I would be hesitant to tell anyone to immediately sell when everything is so uncertain. If your Uncle’s IRA person thinks you’ll be ok… you very well might just be, but with everything happening, it just doesn’t feel like that to you.

At the very least, I would at least wait a month or 2. Give yourself a chance to think.

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#12

I’m leaning toward siding with @Randall1028 on this, given the additional information you are providing.

Which does make me think you really should see if you can find someone close to you who you trust to talk through the entire picture. We are only seeing a glimpse of your situation.

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#13

I’ve always heard give yourself a year moratorium on big decisions. Let the dust settle - sometimes it’s good probate moves so sedately.

With some perspective your current unknowns will have sorted themselves out. You’ll have a more concrete sense of the way forward.

@PrincipalTinker’s idea of having your expenditure also generate a little income may be an excellent option.
Or @ISUamanda’s point of sacrificing some money to acquire the use of money currently obligated to future payments may seem like the smartest choice.

Giving yourself some breathing room now can only help in the long run.

In the meantime, relax. Focus on what must be focused on.

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#14

There is so much good counsel here.

I know sometimes in the midst of a trial I just want to cut and run and move forward in the black, so to speak. On the other hand, I’ve also regretted doing what felt most prudent in the moment, but ended up being overkill for what the situation really required.
You didn’t mention (nor do you need to) just how much grief you are also working your way through. That can also make every other decision harder. And make perspective ever changing.

:heart: :heart: :heart:

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