Travel is at the top of 83 percent of Baby Boomers’ bucket lists. You have time, energy, and a travel budget. But you want to be wise about how you spend your travel dollars. Maybe you've been dreaming about that luxury trip, but I suggest that you make a 5 year plan. Where do you want to go in the next 5 years and where will the money come from.
One of the first things to talk about is taking full advantage of savings options including catch-up contributions to IRAs and 401(k)s. That is critical in creating a nest egg,” said Chief Financial Analyst Greg McBride of Bankrate.com
Travel expenses may need to be funded from those savings. You should actually preplan for retirement trips before you retire. Start putting money away for your dream vacation before you retire. If you haven't saved during your working years, using your fixed income after retirement might be tight.
Second is to think about other options you have to reduce travel expenses.
--One of those things is to use credit card credits. If you have a lot of points on your credit cards use them to book flights or hotels.
--Don't hesitate to express interest in gift cards if asked what you want for a present. VISA has nice gift cards that you can use on anything. Experiences are one of the most fulfilling gifts you can have.
--Work with a travel agent. They have a lot of experience and can help you plan a trip within your budget. Great experiences can be affordable for almost anyone. Even retirees with fixed incomes are able to find a great vacation with no compromise on quality.
--Travel in the off season. The off seasons are the times that are not holidays or when kids have time off from school. The best times to travel are February, March, and Sept- November. It is not only less expensive but also less crowded.
--Know your limits. Plan a vacation that meets your energy needs. Fit in travel during the early years of retirement when health and mobility might make travel easier.
--Think about who your travel companions are. Build relationships with people that will be good travel companions. Maybe you like traveling by yourself. There has been a surge in solo travel in recent years. However, it is nice to travel with someone that you can share your experiences with later. But don't fear, often times solo travelers form close friendships with their group members that enrich their lives and future travels
-Consider cruising. Cruising offers many choices, from river cruises in Europe, Asia, and South America, to ocean cruises just about anywhere in the world. Nearly all-inclusive with most details planned ahead, the ability to visit many places easily, onboard entertainment, quality dining, and specialized themes. Cruises are attracting more travelers each year.
--Consider all-inclusive resorts. Similar to cruises, they offer daily entertainment, quality dining, optional activities such as yoga or dancing, and optional excursions. No need to pack up and move from place to place. Everything is available to you in one spot.
The bottom line is that planning for a vacation takes a lot of planning Plan with your financial adviser, travel agent, and friends and family. Don't leave it to the last minute. A dream without a plan is just a dream..
Check out more tips on how to save for a vacation.
For more help, contact me at https://www.PetersonTravelPros.com