If you love to travel and immerse yourself in new cultures and experiences, there’s a good chance you’re looking forward to traveling in retirement.
Once you’re out of the workforce, you’ll have more time to visit the places and people you’ve always wanted to see. You can reach your goals by budgeting for travel expenses in your financial plan. Planning for travel helps ensure you have enough financial resources for other costs, can enjoy a quality of life at home, and pay for travel expenses. Here are several tips to help you budget for travel during your retirement years.
Lower your retirement expenses
Even if retirement is years away, it’s a good idea to consider what you might pay for housing, food, health insurance, and other expenses after you stop working. Once you know your monthly expenses, look for ways to lower or cut some of them to increase the amount of money you spend on travel.
Create a travel bucket list
Maybe you’d like to travel to a few different states yearly. Or perhaps you hope to explore a new country every few years. Design a travel itinerary for your retirement years with the understanding that it can change due to health concerns, financial emergencies, and other factors.
Research travel costs
After you decide where you want to travel to during retirement, create an estimated budget for each trip. You may have to research online or ask a travel professional to understand what specific trips will cost. Don’t forget to include daily expenses such as rides to and from the airport and tickets to museums. You may want to work with a travel professional to make this step easier.
Add cost buffers
Once you know how much your dream trips may cost, build a buffer into each trip to account for unexpected expenses. For example, you may budget for a cruise to Europe with everything in one price but decide to enjoy some excursions at the last minute. Wiggle room in your travel budget can be beneficial in situations like this.
Maximize your travel dollars
Since retirement can allow for time and flexibility, you can lower the cost of your trips. To do so, consider traveling during off-seasons or watch for online deals to score the best deals. Another option is to combine trips to save on airfare or visit family and friends to reduce the amount you spend on accommodations. Get creative and make the most out of your travel budget.
SWG 2306340-0722a The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.
Our family financial services firm, August H. Velten & Associates, has been in business for 12-years in Melbourne, FL. August Velten (CLU) is a 40-year veteran of the Financial Services industry. August is a former instructor for the Life Underwriter Training Council and once occupied the legislative seat for the Maine Association of Life Insurers. In Brevard County, you may have seen him on local access TV or read one of his articles in a local area magazine. Jessica Waterhouse, August’s daughter, left her own practice to join the firm in 2019. Jessica is a Florida licensed insurance producer, securities licensed (Series 65), a long term care specialist (CLTC) and holds certification as a National Social Security Advisor. Both August & Jessica are instructors for financial literacy workshops in both Brevard and Indian River County offering education in Social Security and Financial Planning. Contact the office today to schedule an introductory meeting or review of your current financial plan.
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