Caller: Dave, I’m 54, recently widowed, retired. $8 million net worth, $7 million invested, up over 16% last year. I want a $75,000 quarter horse for reining plus about $45,000 a year to keep it. My advisor says wait and let the portfolio grow. Am I being reckless?
Dave: I don’t know why your financial advisor even gets a vote.
Caller: He thinks I should be more conservative after losing my husband.
Dave: You’re about to take $150,000, throw it in the middle of the floor, and set it on fire. That’s what a horse is. Ridiculous consumption.
Caller: So I shouldn’t?
Dave: If you’ve got $7 million, you can do that. You can afford it. Buy the horse.
Caller: It won’t hurt me long-term?
Dave: A one-time $75k plus the upkeep is a rounding error on what that portfolio is throwing off. You’re fine. Pay off the leftover $140k mortgage while you’re at it and simplify your life. Then go ride.
Just don’t buy the horse to medicate the grief. Buy it because you actually want the horse. Your advisor should be a teacher, not your dad.