Minimize vacations to retire early?

[meleana]

Life is all about balance and establishing priorities. If/when she marries- and certainly when/if she has children, she will see things differently- hopefully. Unless she marries a rich guy. Then- more power to her.


Then again, if she is working hard and responsible and also manages to save money, she should absolutely enjoy her life as she sees fit. No one knows what the future holds.


I definitely am glad we did not wait until we were older to travel places. And we were so happy to share our experiences with our son.


We did some traveling when young- certainly not like she has. But then again we were married at age 21 and had purchased a handyman special which required a lot of work and money. We both always worked full time and commuted. But we always saved some money in IRA's and so forth. WE managed a cruise and a trip to Disney and some staycations to do day trips and work on the house. We bought a lot that we sold eventually and also tried our hand at being landlords by purchasing a condo- which didn't work out.

After ten years had our one and only child. Moved and bought another home. Then child care expenses kicked in. Has to start saving for his college, etc.

At age 40 took our dream trip to Alaska. Did a couple fo more Florida trips and to St. Lucia and Hawaii. WE bought a timeshare with money gifted by my parents so we used that for mostly drive to vacations and also to go other places via airfare around the country.

No-- we did not retire early. Well- I am 62- some think that is early- LOL! But hubby is still working at 64 going on 65 very soon until he retires next year at 66.

I think we did ok considering. But I do think many of the young people today are spoiled and feel privileged and entitled and I blame that on the parents and the education system.

 

[EvrClrx311]

I spent next to nothing on vacations in my 20's and I regret it... I'm half way through my 30's and I've now been spending 8-10% of my income on hobbies/vacations. I'm much happier now and I figure it only pushes my retirement back a year or two... well worth it IMO.

 

[2177V]

Enjoy life before and after retirement

Life is all about balance and establishing priorities.

But I do think many of the young people today are spoiled and feel privileged and entitled and I blame that on the parents and the education system.

I totally agree that Life is all about balance and establishing priorities. For example, giving up your youth (as my daughter puts it) in order to retire super early does not make sense to her or me.

I served in the military US Army (72-79) and I experienced watching people die in front of me. This changed my life. I then realized that life is short and made me work harder than most other people. However, I did balance my life and in hindsight, I am glad that I did. This is exactly why I posed this question about option 1 or 2 on this forum. I do agree with my daughter that life is to be enjoyed during her ENTIRE life.

Some young people today are spoiled and feel privileged and entitled...but i don't blame it entirely on the parents and the education system. I do blame it on the entire generation who never went through real hardships such as the Great Depression, WWII, Korean War, Vietnam War. These hardships as well as my own traumatic experience changes people.

My daughter worked as a nurse intern and she did witness a person die in a hospital. My daughter shares some of my views that life is to be enjoyed and not to wait until retirement to enjoy life.

 

[brett]

We did not. We had some wonderful vacations during our working lives. Including quitting our jobs and travelling through Europe for four months in a camper van during our mid/late twenties.


You do not know what the future will bring. It is possible to travel. and to prepare for FIRE.

 

[JoeWras]

I wish we took a few more active vacations, but not a lot. I still like ER. Maybe it would have delayed us by a half year to a year.

I think the millennials actually have it right when it comes to the carpe diem thing. But some overdo it. I see some 30 somethings frequently traveling by plane (just for the weekend!) for stuff like semi-annual reunions with friends. Costs at that frequency really add up.

 

[ckelly78z]

If you live your whole life in flinty self denial, how are you going to enjoy your retirement....go on vacation, and enjoy it.

 

[dd564]

I've been fighting for option 1 but now in my 40's wish I would have leaned more to option 2.

I wanted to skydive when I was younger. Now that urge (with the dependencies upon me) has disappeared.

Much of my life has been banked about being safe and risk averse.
Missed out on a lot of things by being safer.

 

[Caskem]

My dad funneled everything he could toward a goal of retiring at age 58. He and the family gave up a lot of things and then he died at 55. Tomorrow isn’t guaranteed.

 

[Oakster]

I turn 50 this year, and I have no intentions of jumping out of a good airplane. If I am jumping out of an airplane it is because it is my best option for survival. Hopefully, with some good planning and conservative spending she can make both options work for her.

 

[Kim451]

Option 2 for me too.

I did the same and retired 'early' at 56. I'm really glad I did my more adventurous trips when younger with other single friends to go with. It also helped to know that if I went over my budget, I could work some overtime and make it up.

Nowadays, my 70 year old friend goes skydiving, but I won't try because landing is too risky for me because of lower back issues and sciatica (jumping while playing with the dogs can knock me off my feet for a couple of days). I've had plantar fascitis and now a stress fracture since I've retired and it's keeping me from hiking and the long walks I wanted to be doing, so no backpacking Europe. And no way I could stand to stay in a hostel full of 20-somethings now anyway.

If she has good genetics and stays slim and healthy (while working and raising kids), Option 1 would work. But doing it now, before she has to worry about paying for 3 or 4 plane tickets and hotel space for husband and kids, is an excellent idea IMHO.

I say do it now, while she can, and remembering her adventures and planning new ones, will give her incentive to get raises/promotions and stash cash for FIRE.

 

[2177V]

My dad funneled everything he could toward a goal of retiring at age 58. He and the family gave up a lot of things and then he died at 55. Tomorrow isn’t guaranteed.

This is the danger of choosing Option 1. Choosing option 2 allows people to enjoy life...because life is not guaranteed.

Just today, my wife was talking about driving around our beautiful country coast to coast visiting 30 cities after she retires. I responded "Why wait. Let's do that NOW! Just take a month off and let's GO!"

 

[aida2003]

Considering the vacations your daughter enjoys, it definitely makes sense to select option 2. I don't think it would be advisable to jump from airplanes or climb the Everest when you're in your 50's. And if she can afford it why not to enjoy it? But I still would advise her to max out her 401k and IRA and then blow the rest on such vacations or whatever. If she doesn't do it, then it's a bit concerning.
Hopefully she will slow down and think of the finances once she has children, but some people just want to continue enjoying their lives like there is no tomorrow. If I knew that I would drop dead in 15-20 years, I wouldn't even go to work on Monday probably and I start consuming the stash instead of w*rking and still saving.
As others have said your DD is an adult and it's up to her. I would be just happy that she is healthy, independent, and spends her own earned money. There are adults who a capable of earning money but are not even motivated to do it because their parents keep supporting them.

 

[2177V]

Considering the vacations your daughter enjoys, it definitely makes sense to select option 2. I don't think it would be advisable to jump from airplanes or climb the Everest when you're in your 50's. And if she can afford it why not to enjoy it? But I still would advise her to max out her 401k and IRA and then blow the rest on such vacations or whatever. If she doesn't do it, then it's a bit concerning.
Hopefully she will slow down and think of the finances once she has children, but some people just want to continue enjoying their lives like there is no tomorrow. If I knew that I would drop dead in 15-20 years, I wouldn't even go to work on Monday probably and I start consuming the stash instead of w*rking and still saving.
As others have said your DD is an adult and it's up to her. I would be just happy that she is healthy, independent, and spends her own earned money. There are adults who a capable of earning money but are not even motivated to do it because their parents keep supporting them.

As her Dad, I never lectured her about saving money and she never asked me to give her money either...even though I retired at age 65 but with a 6 figure annual retirement. She has visited more places in 5 years than I have in 20 years. She is studying to be a Registered Nurse and she married a really nice guy which I agreed that she made the right choice.

Other than vacations, she is very thrifty. She funded all her vacations by saving money so she knows how to save. When she gets a job as an RN in a few years, I will have a discussion with her about opening up a IRA.

 

[YoungSaver]

My advice is to make sure she's playing the reward credit card points game and make sure she is earning miles/points for all her trips.

 

[bclover]

2013 wonderful hubby of 30 years loses his battle with cancer. age 52
2014 baby brother loses his battle with cancer. age 50
2015 best friend and college roommate goes to walk the dog has a massive heart attack and dies. age 50.

I am no longer on the "wait" until I retire train.

last year when the Eagles made it to the superbowl, I encourage my two sons to spend the money and go to the game. I matched whatever they had saved. lol, now no way in heckdom was I going to Minnesota in January but that is an experience that they will have long after I've kick the bucket.

 

[kgtest]

I call this ER/Life balance. You need to balance your ER goals with living in the now, not too much sacrifice, not too little...has to be juuuust right...like Baby Bear.
By 25 I had been to Prague, Vienna, Budapest, Germany, Greenland, Canada, Mexico (three times), and almost every state in the continental US. Oh, I also went airborne in a '97 LT1 Camaro Z28, not quite the same as skydiving, but hey I was livin!


It sounds like she understands any outcomes from either choice though. I agree that you 'aint as young as you once were. I doubt I would enjoy skiing down a 14,500 ft mountain back country as much when I am 55 as I do now in my 30s. Maybe, but I hope the knees hold out.

 

[kgtest]

now no way in heckdom was I going to Minnesota in January but that is an experience that they will have long after I've kick the bucket.

Good call, I LEAVE MN in January hah.

 

[Music Lover]

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:

Nothing wrong with wanting to enjoy life. However, from my perspective (I'm "frugal"), skydiving in Dubai adds no additional value to me than skydiving 20 miles from home, so I'd do it that way for a fraction of the cost, and I'd dog sled in Manitoba or Minnesota rather than Alaska, etc. More expensive isn't always better...sometimes it's just more expensive.

 

[travelover]

Nothing wrong with wanting to enjoy life. However, from my perspective (I'm "frugal"), skydiving in Dubai adds no additional value to me than skydiving 20 miles from home, so I'd do it that way for a fraction of the cost, and I'd dog sled in Manitoba or Minnesota rather than Alaska, etc. More expensive isn't always better...sometimes it's just more expensive.

Yea, but you are leaving out bragging rights.

 

[MichaelB]

Nothing wrong with wanting to enjoy life. However, from my perspective (I'm "frugal"), skydiving in Dubai adds no additional value to me than skydiving 20 miles from home, so I'd do it that way for a fraction of the cost, and I'd dog sled in Manitoba or Minnesota rather than Alaska, etc. More expensive isn't always better...sometimes it's just more expensive.

Just returned from visiting Dubai. Didn’t consider skydiving there, but we did get out and about. You can skydive from home, but it won’t be the same. When you skydive over Dubai, everywhere you look, you can see miles and miles and miles of ——— sand. Not much else.

The best sights in Dubai are seen from the ground. When it comes to skydiving, even bragging rights aren’t enough to go all the way to Dubai for that, and there’s lots to see and do there.

It makes sense to look for a place closer to home. Besides which, if the chute doesn’t open, you also want to minimize the cost and hassle of scooping up your remains and getting them back home.

 

[2177V]

Nothing wrong with wanting to enjoy life. However, from my perspective (I'm "frugal"), skydiving in Dubai adds no additional value to me than skydiving 20 miles from home, so I'd do it that way for a fraction of the cost, and I'd dog sled in Manitoba or Minnesota rather than Alaska, etc. More expensive isn't always better...sometimes it's just more expensive.

Her trip to Alaska was to see the Northern Lights which you can't do in Minnesota. Dog sledding, ice fishing on a frozen lake, having a martini in a cocktail cup made of solid ice at a "ice bar", etc were "side visits" to seeing the Northern Lights. These side visits are things you can't do in California where she lives. She and three of her friends flew to Anchorage and then they drove 400 miles to the Arctic Circle in a rented 4WD SUV and this drive was an adventure in itself. I wish I was in my 20's again. Her Dad.

 

[Music Lover]

Her trip to Alaska was to see the Northern Lights which you can't do in Minnesota. Dog sledding, ice fishing on a frozen lake, having a martini in a cocktail cup made of solid ice at a "ice bar", etc were "side visits" to seeing the Northern Lights. These side visits are things you can't do in California where she lives. She and three of her friends flew to Anchorage and then they drove 400 miles to the Arctic Circle in a rented 4WD SUV and this drive was an adventure in itself. I wish I was in my 20's again. Her Dad.

Good points. I was looking at it from my perspective which is entirely different. For example, snow and ice around here is normal 5 months of the year.

As a side note...I do get to see the Northern Lights from my deck on occassion.

 

[2177V]

Her vacations to Alaska, Thailand, Dubai, etc were ALWAYS with 3 to 5 of her friends. I recently took a family vacation with 3 other families to Yosemite National Park and Yellowstone National Park and the enjoyment increases exponentially.

We also saved money by sharing expenses and cooking BBQ meals together. My daughter was the accountant who gathered all the receipts and made sure all expenses were split equally. When people take vacations together, you will find your cost decreases because expenses are shared and you can drive with less vehicles.

My daughter saved money by driving from Anchorage instead of taking a connecting flight to Fairfax. If you google "Northern Lights Alaska", the light show is spectacular north of Arctic Circle and this is a lot cheaper than going to Iceland, Norway, etc.

 

[MichaelB]

Her trip to Alaska was to see the Northern Lights which you can't do in Minnesota. Dog sledding, ice fishing on a frozen lake, having a martini in a cocktail cup made of solid ice at a "ice bar", etc were "side visits" to seeing the Northern Lights. These side visits are things you can't do in California where she lives. She and three of her friends flew to Anchorage and then they drove 400 miles to the Arctic Circle in a rented 4WD SUV and this drive was an adventure in itself. I wish I was in my 20's again. Her Dad.

My previous post was a bit tongue in cheek, but I will say while I have very few regrets about the choices I made during my work years, the few I do have are mostly travel opportunities I did not take advantage of and are no longer available.

Some opportunities should not be put off.

 

[SkinsFan0521]

I think that there is a middle ground. I took lots of great vacations and still retired early. The key, for me, was paying myself first and investing it, then budgeting vacations and other luxuries out of the remainder.

This.

My wife & I are in our mid-30's and hoping to FIRE no later than 50. Maybe as early as 45. Our current travel budget is about 10% of our total spending and we go on 4-6 trips per year. Usually 2-4 of them being international. We spend a good amount of our money on travel. If we spent less, we could retire much sooner.

Same goes for what we expect our retirement spending to look like. We expect to spend 3-4 times our current annual spending on travel. In context of our retirement budget, that would be around 50% of our total spending. Obviously if we cut this down, we could also FIRE earlier.

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.