Decisions Big and Small, At Verde We Can Help You With Them All!

Today we want to highlight our clients Michael and Christing Kurzawa, who gave us permission to share their story with our Verde Community.  Christine (or Chris as she prefers to be called) and Mike are about two to three years away from retirement.  Mike is a physician, and Chris has an independent business with Mary Kay.  Before retiring, Chris and Mike were looking at ways they could spend more time in a warmer climate during their retirement, especially during the winter months.  They considered buying a home, or renting using AirBnb or VRBO, in places like Florida.  The Kurzawas love Michigan in the summertime, but they hate the cold and snow in the winter.  While their Verde Advisors had helped them plan for their retirement, the decision to buy or rent a home down south was not something the team had looked into previously during this part of Chris and Mike’s journey.

In order to help, Carl & Jack (Chris and Mike’s financial advisors) started to analyze the pros and cons of each option.


Ownership Option Pros:

  • They could bring their dog with them.
  • They could leave their stuff there.
  • They could build a community with their neighbors and friends.
  • They would be building equity over time as they paid off the mortgage.

Ownership Option Cons:

  • The house would be sitting empty a lot of the time, since they only intended to go to Florida for about six weeks out of the year.  They could rent it out during this time, but this option wasn’t appealing to the Kurzawas.
  • There were year-round costs, such as maintenance, utilities, property taxes, insurance, etc, that would have to be paid.
  • This was a very expensive option, given the rising real estate values in the Sunbelt, and the increase in interest rates for a mortgage.

Renting Option Pros:

  • This was (by far) the cheaper option.
  • It allowed them to travel anywhere they wanted, and not necessarily be tied down to the same place for their entire retirement.
  • There would be no need for additional monthly obligations such as a mortgage, maintenance costs, taxes, insurance, etc.  They would only pay for each trip when they decided to take it.

Renting Option Cons:

  • Not building equity in the property.
  • Dogs aren’t always allowed.
  • Hard to build a community when the home isn’t yours.
  • Quality of homes varied greatly between locations.


Based on thorough and thoughtful analysis, Carl and Jack recommended a third option to Chris and Mike: purchasing a fractional ownership real estate property through a new company called Pacaso.  

Pacaso was started by some of the same people that founded Zillow, and has built a business and solid reputation out of getting people to share a vacation home.  This model is already well established in areas such as private aviation where you might own 1/4 of a jet, be responsible for a quarter of the costs, and benefit from a quarter of the usage.  In a similar way, a vacation home is not an asset that most people will utilize all the time; due to this, it makes sense to share it.  

Pacaso gave Chris and Mike a lot of the pros of home ownership, including the concept of building equity, building community, and being able to bring their dog, with very few of the cons, such as year round maintenance costs, the full brunt of taxes, and insurance.  By sharing their Pacaso vacation property with others in the network, they only pay for the six week period they are using.  This allowed Chris and Mike to get a much better home than they could have ever imagined, travel there, and know that when they leave the property will be well taken care of by the other owners with the help of Pacaso.  

While this scenario seems unique, it really highlights the capabilities of a good financial advisor supported by the right technology.  With a tool like Decision Center, Carl and Jack were able to run numbers, plot out different scenarios, and show Chris and Mike the consequences (good and bad) of each of their possible decisions.  Empowered with data, Chris and Mike were able to make the best possible decision for them – which is why we are passionate about what we do at Verde.

Each of our clients at Verde is writing their own unique life story.  In your story, YOU are the hero!  As a financial advisor our role is that of the guide, which is someone who scouts the financial path ahead for opportunities and pitfalls, provides well informed counsel, and presents different options so YOU can choose the best route toward your dreams.  

Please take a couple of minutes to watch the video below showcasing Chris and Mike at their new Pacaso home in the Florida Keys.

The viewpoints and opinions shared in this video were made voluntarily by the speakers to a third party.  Verde Capital Management did not request this feedback or commentary, nor did it compensate the speakers in any way for sharing their views and opinions.  Verde Capital Management is not affiliated with Pacaso, and did not receive any compensation from Pacaso or any of its affiliates for assisting the speakers in purchasing their property, or in the making of this video. This savings strategy may not be for everyone, and should be based on an investors unique needs, goals, and risk tolerance.  This is not an endorsement by Verde Capital Management of Pacaso or any of its affiliates.

Verde Capital Management, Inc. is a federally registered investment adviser. The information, statements and opinions expressed in this material are provided for general information only, are based on data we believe to be accurate at the time of writing, and are subject to change without notice. This material does not take into account your particular investment objectives, financial situation or needs, is not intended as a recommendation to purchase or sell any security, and is not intended as individual or specific advice. Investing involves risk and possible loss of principal capital. Diversification does not ensure a profit or protect against a loss. Past performance is not indicative of future returns. Advisory services are only offered to clients or prospective clients where Verde Capital Management, Inc.  and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Verde Capital Management, Inc. unless a client service agreement is in place.