Want to Travel in Retirement?
Darryl Rosen MBA, RICP?
Independent Fiduciary Wealth Advisor who helps retirees either spend more when they are younger and healthier or leave a greater legacy (if they like their offspring ??)
Plan to travel a lot during retirement?
Your dreams may be dashed if you read what I read this morning.
An article called… Boomer's remorse: These are the top 5 ‘big money’ purchases you will (probably) really regret in retirement
Here are a few purchases they sighted.
Too much spent on…
I? have a thought about travel.
The author says: “Several big trips at the start of your retirement means big withdrawals that limit the growth of your investments for the next 20 or 30 years. That can mean you’ll have less to rely on when health care expenses typically rise.”
This is accurate but a bit misleading. The way retirement plans get waylaid is not too much spending early in retirement, it’s too much spending early in retirement in a down market.?
So plan for it.
In my plan, I have allocated a specific amount of money for travel from 65 to 75. Here is how I will make this happen.
First, 5 years out from retirement, I will allocate enough money to cover the first 5 years of retirement spending in full.
With this step, there will be no market risk with the funds I need for these years.? Never use funds that are susceptible to market fluctuations.?
Second, I will keep the bulk of my money in equity ETFs. It’s true nobody knows where the market is going in the short term, but over the long haul - Nearly every 10 - 20 year period…Positive returns.
So, this may seem like a riddle but having too much “early year” money at risk and not enough “later year” money at risk is what might ground your travel plans in the future.