26 Jun How Should I Incorporate Travel into Our Retirement Planning?
Many people dream of traveling the world or at least vacationing more during retirement since they’ll have more free time. From relaxing on an island in the South Pacific to taking a tour of Europe’s top landmarks, you can better achieve your travel goals by planning for them now.
Here are four steps that can help benefit your travel plans and retirement in general:
First, define your retirement goals, which should include travel plans such as dream vacations that you know you want to take.
Next, analyze how much retirement income you’ll have each month or year based on sources such as retirement savings accounts and Social Security benefits.
Then estimate your expenses, which can look quite different during retirement than they do currently. Some expenses like real estate costs might go down, such as if you pay off your mortgage by that time, while travel expenses will likely go up in retirement if you travel more.
Once you have more clarity on your retirement goals, income, and expenses, you can set a travel budget or increase your savings for retirement travel. Working with an independent, fee-only financial advisor, for instance, you could create a financial plan that includes a monthly savings goal to help ensure you have enough retirement income to support your ideal lifestyle, including travel.
By thinking about travel plans now as you save for retirement, you can better prepare your savings so that when retirement comes, you’ll know how much you can spend on seeing the world without hurting your savings.
Having a long-term financial plan can give you more peace of mind that you can reach your travel goals, and once you’re actually traveling the world, you’ll be more able to relax, confident that you can afford those well-earned trips.
Schedule a complimentary, 15-minute call with a fee-only financial advisor today to discuss your personal situation.
Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.