By Bennett Whitlock, CRPC®, Private Wealth Advisor
Years of hard work often leave people dreaming of a time when they’ll have a chance to get away from it all in retirement. It could be in the form of travel to exotic locations they’ve never visited before, or a vacation getaway spot they’ll visit regularly. Either way, it requires having enough money to do so.
If you dream of travel in retirement, you need to build a strategy to save and accumulate the necessary funds without hindering the ability to meet the basic costs of day-to-day living in retirement.
Planning for Extensive Travel in Retirement
Traveling the country or world is a dream for many. While you are working, it can be difficult to accomplish because of time constraints. Retirement changes all that. Depending on the extent of your plans, the price tag can be considerable, including the cost of flights, accommodations, eating out and other expenses.
Study your options and try to identify specific places you want to visit. Then try to get a handle on the projected costs, and set aside money in a special account that you can tap for that purpose. If you plan to make travel a regular part of your retirement routine, you’ll need to budget accordingly as you lay out your retirement income plan.
Finding a Vacation Place
A retirement “getaway” for some may be to own or rent a second home in another area of the country or in a different setting from their primary home. This could double your housing expense, so you need to be sure you have enough cash flow to cover those costs. One option you may consider is a timeshare unit that allows you to “own” a share of a vacation property that can be used once or several weeks a year. Be aware of the fees, the financial commitment required and the potential to exit the arrangement, if you desire later in life.
Put Time to Your Advantage
The best strategy is to start making your plans in advance of retirement. Use the time you have to set specific goals and build savings that will help make your dreams a reality.
Bennett Whitlock, CRPC ®, is a private wealth advisor and managing director with Whitlock Wealth Management, a franchise of Ameriprise Financial Services, Inc. Learn more at WhitlockWealth.com or call 703-492-7732.