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Travel in Retirement: Tips to Finance Your Adventures

The opportunity to travel is something many people look forward to in retirement. All that time and freedom to explore the places you’ve always dreamed of visiting! We want to help you live your adventure. Here’s a few financial considerations to keep in mind before you plan your itinerary and pack your walking shoes.

Invest Appropriately

To best finance your retirement travels, you have to invest smart! Because of the market’s volatility and despite our best predictions, it’s important to protect the funds you’ve set aside for your jetsetting. Generally, one-time expenses, like a trip you plan to take within the next two years, should be held in cash alternatives, rather than portfolios.

To avoid the risk of market downturns affecting your travel budget, we would urge you to consider keeping these short-term funds in things like treasury bills, certificates of deposit (CDs), or money market funds. These options offer principal protection so you’ll have the funds for the travel you’re planning for the relatively near future.

For travel plans further into the future, you can afford to take on a bit more risk with your investments. For instance, expenses planned three or more years in the future might be better financed by a mix of fixed-income investments and stocks. This balanced approach can provide higher returns over time, helping your travel savings grow, grow, grow.

Building a Budget

Having some semblance of a plan for what kind of travel you’d like to do can help you best budget for it. If you imagine you’ll go on a few major trips a year, allocating a lump sum at the beginning of the year can be most helpful as you plan out your retirement withdrawal strategy. If you think you’ll be taking shorter, more frequent trips, maybe to visit loved ones, it might be better to incorporate those anticipated costs into your monthly budget. With an idea of your travel-style in mind, you can best tailor your budget to your lifestyle!

Quick Tips To Keep In Your Rucksack

And now it’s time for the portion of our show when we hand out some quick tips to maximize your travels. Whether you’re planning your Alaskan cruise adventure or a relaxing stay in the south of France, these smart strategies will serve you well:

  • Secure Travel Insurance: While it does add a little to your travel expenses, travel insurance is an investment that’s well worth it in the event of the unexpected – illness, injury, or otherwise. It can also cover lost luggage and trips to the emergency room, potentially saving you from substantial financial setbacks and protecting you abroad.
  • Maximize Credit Card Rewards: Many credit cards provide points, miles, or cashback on travel-related purchases, along with perks like rental car insurance discounts and airport lounge access. There are so many ways to get a greater bang for your buck with reward cards, especially while traveling. If one of your main goals for retirement is travel, we highly recommend learning the ins and outs of the world of travel credit cards. Of course, to avoid interest charges and get the most out of these rewards, it’s essential to pay off your balance each month.
  • Leverage Senior Discounts and Travel Groups: Take advantage of senior discounts available through various travel companies, airlines, and accommodation providers. They are designed to allow you to celebrate your golden years! Joining travel clubs for retirees can also offer unique group travel experiences at reduced rates. Who knows – you might even make some new friends along the way.
  • Stay Flexible: You know this already, but when planning a trip, shop around for the best prices on flights, hotels, and activities. Even better, staying flexible with your travel dates and destinations can lead to significant savings. If you’re able to travel mid-week when others aren’t, do it! Additionally, consider traveling during off-peak seasons to stretch your travel budget further.

Investing in experiences, like that dream trip to Italy or a cross-country road trip, is a significant part of enjoying your retirement. Planning ahead ensures that you won’t have to worry about financial setbacks, allowing you to enjoy your experiences to the fullest. If you want to learn more about planning out your finances for travel in retirement, give us a call: 952-460-3290. Bon voyage!

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Danielle Christensen

Paraplanner

Danielle is dedicated to serving clients to achieve their retirement goals. As a Paraplanner, Danielle helps the advisors with the administrative side of preparing and documenting meetings. She is a graduate of the College of St. Benedict, with a degree in Business Administration and began working with Secured Retirement in May of 2023.

Danielle is a lifelong Minnesotan and currently resides in Farmington with her boyfriend and their senior rescue pittie/American Bulldog mix, Tukka.  In her free time, Danielle enjoys attending concerts and traveling. She is also an avid fan of the Minnesota Wild and loves to be at as many games as possible during the season!