We're empty-nesters and want to spend $150,000 on a home renovation - is it worth delaying retirement?

Before moving forward, Bill and Karen need to understand the full financial impact of spending $150,000 on the renovation. While they plan to pay in cash and avoid taking on debt, this would significantly reduce their savings and could slow the growth of their retirement investments. Even though it feels good to avoid debt, using this large sum now means losing the potential returns it could generate if left invested.

If they left the $150,000 in a well-diversified portfolio earning an average return of 5% annually, it could grow to nearly $190,000 in five years. By spending it now, they may miss out on that growth, and their overall retirement fund may not be as robust as they had planned.

It's also essential for Bill and Karen to consider the emotional and lifestyle benefits of the renovation. With their children no longer living at home, they now have the flexibility to focus on themselves and their dream home.

If a new kitchen or a more open living space will bring them more enjoyment and improve their quality of life, the investment could be worth it, even if it impacts their retirement timeline.

Read at 24/7 Wall St.