Minimize vacations to retire early?

[2177V]

But, our big passion in life is travel. No point in moving up our FIRE date and not be able to travel. And no point in not traveling now just to move up our FIRE date.

We always pay ourselves first (max both 401k, max both Roth IRA, max HSA, contribute to brokerage, etc.) and figure out the travel budget from there.

My daughter's mindset is travel first in her 20's and make Early Retirement a secondary priority to travel. However, I will attempt to make her consider paying her 401K, Roth, etc first....and then whatever is left over is her travel budget. This forces her to save money on her other budgetary expenses.

Great strategy. Thank you.

 

[Mdlerth]

Travel broadens the mind and tones the abs

I'm not keen on travel, but my wife and kids sure are.

My oldest DD recently returned from a week in Thailand. Spent 3 days of it projectile vomiting after eating some food from a street vendor. Says she had a great time on the trip!

I told her she could have saved thousands and gotten the same experience by staying home with a jar of expired oysters. Nobody ever listens to Dad.

 

[Music Lover]

I'm not keen on travel, but my wife and kids sure are.

My GF and myself are not really into travel...we're "get away from the cold for a while" people, so we're able to limit travel expenses by finding a last minute seat sale or by driving south and renting for a month or so. And that's good because my budget doesn't really lend itself to extensive world travel to exotic locations.

 

[RxMan]

My wife always says “I know we’re doing fine but it always feels like we don’t have any money.” We’ve taken a few “big” vacations since getting married 6 years ago: Costa Rica for our honeymoon, all inclusive in Cancun, Mexico a couple of years ago, and an all inclusive in the Bahamas in April 2017 for my SIL’s wedding. We’ve also done smaller vacations like Savannah or Charleston but nothing recently other than my wife going to Disney World with some friends last year.

The last couple of years have been difficult because we’ve both not been working at the same time. I quit a job I really grew to dislike in February 2018 and it took 6.5 months to find a new job. DW quit a job she hated in February this year and will go back to school for a year starting next month for an accounting degree. No kids and we aren’t interested in starting a family so that is a big advantage financially as well as no debt and a paid off home.

Honestly, the fact that I’ve been saving for retirement since starting work in my upper 20s after pharmacy school gave me the ability to say screw it and quit a job that was killing me with stress and physical and mental strain. My wife escaped a similarly bad situation in the public school system here (don’t get me started on the train wreck that is the school system) and honestly having the freedom to get the heck out of terrible job situations has meant more to me than any vacation.

I know my DW wants to travel. She is so much more of a world traveler than I have been so far. We will have to budget for traveling at least early in any retirement plan we develop. Honestly, we both want to leave our jobs and go full time RVing around the country as soon as possible but we’re assuming our timetable for that plan is at least 5 years out.

I’m 45 and DW is 32 so I have to make sure any retirement plan compensates for her expected long life after I’m gone. Otherwise we’re hoping to get out more on trips before we retire after we are both working again starting next summer.

In your working years it can feel like you either have the time to vacation or the money but not both. I can’t wait to be FI to be in the both category.

The other thing I look forward to in retirement is to be more flexible regarding when we can go on a big trip. In that situation you can potentially take advantage of travel deals that are usually difficult to do because of the timing of a vacation while still employed full time.

Life is a balance and tomorrow is not guaranteed. But I refuse to wish my life away to get to some future magical retirement period even if I FIRE and am “younger” than I thought I would be when I retire. Life is too short not to enjoy the journey and that includes the working years. I’m hoping to quit work in my early 50s but we’ll see how thing play out for us. The next 5 years of growth to our nest egg is critical to how and when we’re able to retire.

I just took a week off work and we went camping locally for a couple of nights with our two dogs. We really enjoyed it and did a lot of hiking. Not expensive as vacations go but it was “getting away from it all” which is important sometimes.

It’s all about priorities. Some people value toys more than trips. As long as you plan and budget accordingly you can make anything work including jumping out of a perfectly good plane.

 

[2177V]

My daughter's primary language is mandarin and she is going to nursing college which she has to translate some difficult medical terminology words into mandarin so she can understand the subject material. She is stressed out. However, I told her that "greatness can only be achieved through hardships".

During her spring break and summer vacations from college, she takes overseas vacations to relax and recover from her final exams. After she finish this difficult stage of her young life, I have a duty as her father to plan for her retirement.

Everyone goes through hardships . Hardships build character and wisdom. She has a budget and she does not have any toys. I do provide some help but overall she is very responsible about spending and since her overseas vacations help her stress levels, then I fully support this.

 

[joeea]

My wife always says “I know we’re doing fine but it always feels like we don’t have any money.”

I quit a job I really grew to dislike in February 2018 and it took 6.5 months to find a new job. DW quit a job she hated in February this year and will go back to school for a year starting next month for an accounting degree.

honestly having the freedom to get the heck out of terrible job situations has meant more to me than any vacation.

I advise all my friends and family to find their next job first, and only then quit their current job. But you are apparently in a position financially to do it the other way around. That's a tradeoff many wouldn't make.

In your working years it can feel like you either have the time to vacation or the money but not both.

I suppose it depends on how much money you wish to spend on your vacations, and how much time they will consume. I never felt a lack of time or money.

It’s all about priorities.

Yup.

 

[joeea]

After she finish this difficult stage of her young life, I have a duty as her father to plan for her retirement.

I haven't heard that before. Is that a cultural thing?

I don't feel any duty as a father to plan for my childrens' retirements. My parents planned for their own. I planned for my own. I expect my children to do the same.

 

[Nick12]

Option 1 is what I took. Invested heavily in equities and FIREd at age 51.

 

[MarieIG]

I'm not keen on travel, but my wife and kids sure are.

My oldest DD recently returned from a week in Thailand. Spent 3 days of it projectile vomiting after eating some food from a street vendor. Says she had a great time on the trip!

I told her she could have saved thousands and gotten the same experience by staying home with a jar of expired oysters. Nobody ever listens to Dad.

LOL, my second son and his wife's last vacation was to Thailand. It seems to be a popular destination for the young ones. (I will pass.)

 

[athena53]

I haven't heard that before. Is that a cultural thing?

I don't feel any duty as a father to plan for my childrens' retirements. My parents planned for their own. I planned for my own. I expect my children to do the same.

I'm not the person to whom you addressed the question, but I'm standard-vanilla 3rd generation or so American and I hope to help fund DS' and DDIL's retirement. My priorities are in this order, and they know it: Don't outlive my savings, fund their kids' college educations, and leave them a legacy. DDIL is a stay-at-home Mom (and very good at it) and they're expecting their 3rd child soon. DS (my only child) has a good job but may never hit the C-suite and that's OK- I didn't, either. They may have to help her parents, who have worked hard but at modest jobs,when they can no longer live independently.

Having said that- I still take two major trips a year and several smaller ones. I just spent about $1,000 of their inheritance taking the 5-year old to Chicago- plane trip, 2 nights in a hotel on Hilton points, meals, museum admissions, etc. Fun times!

 

[joeea]

I'm not the person to whom you addressed the question, but I'm standard-vanilla 3rd generation or so American and I hope to help fund DS' and DDIL's retirement. My priorities are in this order, and they know it: Don't outlive my savings, fund their kids' college educations, and leave them a legacy. DDIL is a stay-at-home Mom (and very good at it) and they're expecting their 3rd child soon. DS (my only child) has a good job but may never hit the C-suite and that's OK- I didn't, either. They may have to help her parents, who have worked hard but at modest jobs,when they can no longer live independently.

You consider that your responsibility as a father? Interesting. That's not something I had heard before.

Did your dad fund your retirement?

 

[MarieIG]

I haven't heard that before. Is that a cultural thing?

I don't feel any duty as a father to plan for my childrens' retirements. My parents planned for their own. I planned for my own. I expect my children to do the same.

My father got it his head that he wanted to do something for my retirement as well.

I speak to my children often regarding saving for retirement, and started ROTHs for all of them.

YMMV

 

[athena53]

You consider that your responsibility as a father? Interesting. That's not something I had heard before.

Did your dad fund your retirement?

Ummm.... I'm a mother!

No- not my responsibility but my 3rd priority. My spending rate is sustainable (net worth up an average of 2.9%/year since I retired 5 years ago) and 40% is travel and charitable donations combined, with charity being the bigger part. I love my house; fancy cars and clothes not a priority. Nothing more on which I want to "blow that dough". I could give more to charity but prefer to keep total outgo at this level to provide a safety margin, so there will likely be leftover money when I go. And yes, that's what I prefer to do with it but I don't consider it my "responsibility", nor does DS expect it.

My parents funded my college education and that meant EVERYTHING to me. Dad is 88 and widowed and whatever he leaves behind will be split with my 4 siblings and not a life-changing amount. It will probably go straight into the 529s.

My plans over the next 18 months include Hawaii in November, the Galapagos (as well as Bolivia and Macchu Picchu) in March and probably a few weeks in Munich next summer. Flights will be Business Class. I'm not exactly depriving myself.

 

[joeea]

My father got it his head that he wanted to do something for my retirement as well.

Your dad is funding your retirement?

I speak to my children often regarding saving for retirement, and started ROTHs for all of them.

Speaking, educating, guiding, even starting them off well - I completely get that. Bravo to you.

Deciding that you are responsible for their retirement - I don't get that as much.

I'm responsible for my life. I'm responsible for my retirement. I have raised my sons to be responsible for themselves. I wouldn't want them dependent on me for their whole life. They need to learn independence.

 

[joeea]

Ummm.... I'm a mother!

Sorry, no offense meant.

No- not my responsibility but my 3rd priority. My spending rate is sustainable (net worth up an average of 2.9%/year since I retired 5 years ago) and 40% is travel and charitable donations combined, with charity being the bigger part. I love my house; fancy cars and clothes not a priority. Nothing more on which I want to "blow that dough". I could give more to charity but prefer to keep total outgo at this level to provide a safety margin, so there will likely be leftover money when I go. And yes, that's what I prefer to do with it but I don't consider it my "responsibility", nor does DS expect it.

So it's not your responsibility. That makes sense to me.

My parents funded my college education and that meant EVERYTHING to me.

My parents couldn't afford to do that. I always understood that.

I made sure my wife and I could fund our sons' college educations. That meant a lot to me, and I know it meant a lot to them.

Dad is 88 and widowed and whatever he leaves behind will be split with my 4 siblings and not a life-changing amount. It will probably go straight into the 529s.

What a terrific legacy!

 

[Nick12]

I haven't heard that before. Is that a cultural thing?

I don't feel any duty as a father to plan for my childrens' retirements. My parents planned for their own. I planned for my own. I expect my children to do the same.

My brother and I were on financial aid grants and we went to an exclusive private prep school for high school. The kids in school were from very wealthy backgrounds. How the parents fund their babies future-- trust funds and inheritances. My former classmates were set up for life.

 

[Dtail]

My parents paid for my college, but always worked throughout school.
I paid for my sons' college, although one dropped out.

 

[marko]

I haven't heard that before. Is that a cultural thing?

I don't feel any duty as a father to plan for my childrens' retirements. .

In the culture of trust fund kids it is!

 

[Oz investor]

My 25 years old daughter wants to retire early but she is fond of going on expensive vacations. (Skydiving in Dubai, Dog sledding in Alaska to see the Northern lights, etc)

I then asked her a question on which path she would take....

(1) Minimize vacations expenses to retire early or
(2) Take great vacations and retire later.

She prefer option 2 because she is in her 20's and she wants to enjoy life. She also claims that at age 40 or 50 she will be "too old" to enjoy these things in early retirement.

Any comments on which option you would take?

A video of her Dubai vacation is at:

an oddball thought

she hasn't thought of a youtube channel and trying to monetize selected videos ( and invest the cash from that )

cheers !!

 

[Bamaman]

It's taking too many vacations that made me especially want to retire early.

And seeing my family members traveling to every end of the earth also was a motivating factor in saving heavily for retirement. We have always led frugal lives--other than taking vacations.

 

[Chuckanut]

I would continte to take vacations in my younger years. After all, one doesn't know for sure what the future holds. But, keep them on the cheaper side of things. I am always amazed when I see young folks of middle class means or less, who think they 'deserve' to take a limo to their 5-star hotel instead of taking public transit to the 3.5-star hotel.

Before I retired I could have taken the elevator to the top of the Eiffel Tower. Instead, for less money, I had a nice lunch on the roof of a department store with a wonderful view of Paris that included the Eiffel Tower.

 

[kgtest]

I take vacations to de stress and get away although there is always a stressful moment on vacation. When I was in 20s about 12 years ago I too thought the way your DD does. Live for the now. I still kind of feel this way but priorities change when you have a family. I travelled to quite a few countries in my 20s usually with friends. Looks like she enjoyed herself. Fearless. Tell her to check out Nevis Bungee in Queenstown and wrap up the night with a hot pools watching the stars.

 

[marko]

Before I retired I could have taken the elevator to the top of the Eiffel Tower. Instead, for less money, I had a nice lunch on the roof of a department store with a wonderful view of Paris that included the Eiffel Tower.

Do you mean to say that you went all the way to Paris and didn't pay the $8.50 to take the elevator at the Eiffel Tower??!

 

[athena53]

Do you mean to say that you went all the way to Paris and didn't pay the $8.50 to take the elevator at the Eiffel Tower??!

I've been to Paris 3 times in my life and have not been to the top of the Eiffel Tower. Life is too short (especially the time you spend in special places) to spend it standing in line.

 

[marko]

I've been to Paris 3 times in my life and have not been to the top of the Eiffel Tower. Life is too short (especially the time you spend in special places) to spend it standing in line.

To each his own I guess.

We lived in Paris for several years and all our friends who visited had it on the top of their 'to do' list. (If you know what time to go the line can be a little as 4-5 minutes). You could also opt to go big-time and take a separate private elevator to dinner there at the Jules Verne.

To us, the Eiffel is such an iconic structure it would be like going to Egypt and not bothering with the Pyramids.