Thoughts on if we are prepared

[pacergal]

Both of my brothers have timeshares, where they bought a certain amount of points to be used anywhere in the world. They have thoroughly enjoyed the travels. It's not my choice, but it was theirs.
To each his own. If you don't want a time share, don't buy one. Poster was simply sharing his/her experiences with theirs.

OP--If firecalc says you are good to go and you answered the questions Gumby referred too, then I sy you are probably ready to retire on your terms. Enjoy!

 

[Koolau]

People who understand how to use timeshare get tremendous value. Rule number 1 is not to buy from the developer. All the nightmare that you read and hear about is that people spend way too much to buy from the developer. There is no value even when you amortize the purchase price over the life of keeping it, say, 10 to 15 years.

When I say value, an example is that if I were to go to Marriott and book a 1 week stay in a 2BR at Westin Ka'naapali, it costs me about $10K a week. My cost to stay in the same room and resort for a week is about $1,200 to $1,500. If you do that for 3 months, you can see how much I save. Even if you say, I don't want to cough up top dollars and prefer to stay at a crummier place, it will still cost you $3K to $4K a week. I get to exchange to up to 3000 locations and resorts worldwide, but the strength is in the US. I spend 4 to 6 weeks in the winter in Scottsdale - Westin Kierland, a top resort in a 2BR and/or in Westin/Marriott brand resort in a 2BR in Palm Desert. In the summer, I spend a month or two in coastal California. I just returned home after spending a month in Monterey CA. Next year we are going back to Carlsbad area for a month in the summer.

I'm glad it w*rks for you. I guess it's all in the resale market as opposed to the "ground floor" buyers - those buying from the developers.

With so many "weeks" that you describe, don't you have to purchase a lot of "shares?" Even in the resale market, those do cost money and IIRC there are maintenance fees along with your "weeks" charges. Have you added those other costs in when you compare with the more traditional hotel charges?

When we considered time shares, we thought in terms of up front costs, maintenance costs, weeks costs and the restrictive nature of the time share network (the good places are hard to book.) We decided to just go the hotel route and have more flexibility to choose where we wanted to go and when - without trying to exchange for a location we preferred at an indeterminate time.

Thanks for your input.

 

[RetiredHappy]

I'm glad it w*rks for you. I guess it's all in the resale market as opposed to the "ground floor" buyers - those buying from the developers.

With so many "weeks" that you describe, don't you have to purchase a lot of "shares?" Even in the resale market, those do cost money and IIRC there are maintenance fees along with your "weeks" charges. Have you added those other costs in when you compare with the more traditional hotel charges?

When we considered time shares, we thought in terms of up front costs, maintenance costs, weeks costs and the restrictive nature of the time share network (the good places are hard to book.) We decided to just go the hotel route and have more flexibility to choose where we wanted to go and when - without trying to exchange for a location we preferred at an indeterminate time.

Thanks for your input.

There is a whole website (TUGBBS.com) that explains how everything works. There is the "buy where you want to stay" or "buy an inexpensive powerful trader (inexpensive in terms of purchase price and maintenance fees)" to get to the top resorts. My maintenance fees for Westin/Sheraton/Marriott timeshare are about $11K a year and I also own 35K Worldmark contract that costs about $3.5K in maintenance fees to get to coastal California/West coast resorts. All of these can be used to stay at their resort network or to be traded into 3000 other resorts. Your entry fees can be low or high (resale of course) depending on what you want to own. It is much better for you to post your questions and to read about it in TUGBBS.com.

 

[Koolau]

There is a whole website (TUGBBS.com) that explains how everything works. There is the "buy where you want to stay" or "buy an inexpensive powerful trader (inexpensive in terms of purchase price and maintenance fees)" to get to the top resorts. My maintenance fees for Westin/Sheraton/Marriott timeshare are about $11K a year and I also own 35K Worldmark contract that costs about $3.5K in maintenance fees to get to coastal California/West coast resorts. All of these can be used to stay at their resort network or to be traded into 3000 other resorts. Your entry fees can be low or high (resale of course) depending on what you want to own. It is much better for you to post your questions and to read about it in TUGBBS.com.

Thanks. I may check it out.

 

[Southbay]

People who understand how to use timeshare get tremendous value. Rule number 1 is not to buy from the developer. All the nightmare that you read and hear about is that people spend way too much to buy from the developer. There is no value even when you amortize the purchase price over the life of keeping it, say, 10 to 15 years.

When I say value, an example is that if I were to go to Marriott and book a 1 week stay in a 2BR at Westin Ka'naapali, it costs me about $10K a week. My cost to stay in the same room and resort for a week is about $1,200 to $1,500. If you do that for 3 months, you can see how much I save. Even if you say, I don't want to cough up top dollars and prefer to stay at a crummier place, it will still cost you $3K to $4K a week. I get to exchange to up to 3000 locations and resorts worldwide, but the strength is in the US. I spend 4 to 6 weeks in the winter in Scottsdale - Westin Kierland, a top resort in a 2BR and/or in Westin/Marriott brand resort in a 2BR in Palm Desert. In the summer, I spend a month or two in coastal California. I just returned home after spending a month in Monterey CA. Next year we are going back to Carlsbad area for a month in the summer.

Not to turn this into a timeshare thread, but I agree 100%. For my family it has been worth it for almost 20 years. I live on the continental US but go back to visit my parents in Hawaii every summer. Parents house was not big enough for everyone so staying at the Hilton Hawaiian Village in a 2Bed/2Bath for 2 weeks every year was perfect. Purchased my timeshare points on the grey market. Over the years, have also been to other Hilton timeshares like San Diego, Orlando, etc... Timeshares are NOT for everyone and every timeshare is different so do your due diligence and see if it fits your family's lifestyle / present and future plans.

 

[Koolau]

Not to turn this into a timeshare thread, but I agree 100%. For my family it has been worth it for almost 20 years. I live on the continental US but go back to visit my parents in Hawaii every summer. Parents house was not big enough for everyone so staying at the Hilton Hawaiian Village in a 2Bed/2Bath for 2 weeks every year was perfect. Purchased my timeshare points on the grey market. Over the years, have also been to other Hilton timeshares like San Diego, Orlando, etc... Timeshares are NOT for everyone and every timeshare is different so do your due diligence and see if it fits your family's lifestyle / present and future plans.

It sounds like timeshare usage requires a certain amount of knowledge the average person is not privy to. I'm sure the info is out there, but it's probably obscure to the average person (grey market timeshare points??.)

 

[RetiredHappy]

It sounds like timeshare usage requires a certain amount of knowledge the average person is not privy to. I'm sure the info is out there, but it's probably obscure to the average person (grey market timeshare points??.)

Resale market, widely available. Redweek.com is the most used site for resale and rentals.

 

[brett]

The second and last time we went to a timeshare presentation at a condo where we were stayed for a week we priced a week.

Then went back to our suite, got online, and checked the resales. Same for same....the market was priced at 1/3 the price of the presentation pressure sale. Lots in the development on the market...so that spoke volumes to us.

 

[Cayman]

OP - we walked at 50 with about the same bonus dollars on the table and a promotion offer. DH was fried, no $ were worth his staying. We haven't regretted it. As long as you and DW are happy flexing on your spend if needed at some point, then go now. Have a great retirement with your wife. You'll have more to spend than most retirees in the US. Enjoy.

 

[Al18]

I’ve owned a timeshare for 18 years and we are completely satisfied with our purchase. It’s not an investment, it’s a method to get a room that’s 50% larger than a typical hotel room at 3, 4 or 5 star resorts anywhere in the world. For those that are adverse to spending money on a vacation, consider it a prepaid vacation to wherever you want - use it or loose it.

 

[Cayman]

OP - we walked at 50 with about the same bonus dollars on the table and a promotion offer. DH was fried, no $ were worth his staying. We haven't regretted it. As long as you and DW are happy flexing on your spend if needed at some point, then go now. Have a great retirement with your wife. You'll have more to spend than most retirees in the US. Enjoy.

 

[Chuckanut]

I used Firecalc and two different Monte Carlo simulators to see if I could retire. They all said “yes”. I jumped and have never looked back.

In regards to our off topic discussion, I know two timeshare owners who are happy. One has a Summer week on the Oregon coast every year. The other has the last week of the year between Christmas and New Year at his on the beach place in Kauai

Several people I know have been willed a time share by an enemy. They let the executor know they are declining the gift.

I agree with RH, if you buy on the secondary market at a great discount and YOU KNOW WHAT YOU ARE DOING, they can be a good value. I know a guy who has done that. But, again, it’s got to be a great property you can trade bought at a great discount. Like my friend’s Kauai timeshare above.

 

[pb4uski]

I just posted about a dream trip, but this is more about my concern on if we have prepared enough. The goal is to retire in April 2025, but might hang around until November if I get too concerned about finances. Here is where we stand as of April.

• 1.4 million in 401K. Almost all into equities. We should not have to touch this until we start taking SS at 67. DW will be 65 at the time.
• 800k in a deferred comp package that will pay us about 150k a year until we collect SS. Return is 10% as of now. Prime +1%.
• Should have another 500k in investments once we downsize our house in the next 6 months. House will be paid off. Wouldn't mind putting this into a CD or something with a fixed return
• I should max out on SS which should be around 5k or more a month at 67.
• If I push retirement until November 2025 it will add about 250k in additional investment income. This is due to RSU's and bonus that pay out in November 2025. I prefer to retire in April because I'm an Executive in a very high stress job and have been doing it for 35 years. Kind of worn out on the BS.

My concern is the goal is to live on about 120k a year, Right now we spend about 50-70k a year traveling, but plan on pulling way back after we retire (with the exception of our dream trip I posted about. We might even buy a house by Hilton Head (350-500k) and spend a lot of time down there in the Winter. We love to drive, so will probably spend a lot of time driving around the Country, and maybe even to Alaska. We have taken a lot of lifetime trips with our kids and grandkids, and don't feel the need to keep doing this. Maybe one trip every other year that would cost 20-25k. The wife an I also go to Hawaii once a year for about 10k.

Any input would be appreciated.

Given that you have $2.7m after downsizing your house and health issues, I suggest that you retire... NOW. According to FIRECalc your safe spending would be $151,954/year for the next 40 years. I had to guess on some things but you can refine it but I think it will all suggest that it is safe for you to retire now.


Here is what I used:

Portfolio: $2,700,000 ($1.4m 401k + $800k deferred comp + $500k house downsizing)
Full Years: 40
Social security: $45,864 starting in 2030 and $22,932 starting in 2030 (guesses, check ssa.gov to get your real PIAs)

Go to Investigate tab and click radio button Solve for spending level at 95% success rate

Result is $151,954/year.

 

[cxr133]

Given that you have $2.7m after downsizing your house and health issues, I suggest that you retire... NOW. According to FIRECalc your safe spending would be $151,954/year for the next 40 years. I had to guess on some things but you can refine it but I think it will all suggest that it is safe for you to retire now.


Here is what I used:

Portfolio: $2,700,000 ($1.4m 401k + $800k deferred comp + $500k house downsizing)
Full Years: 40
Social security: $45,864 starting in 2030 and $22,932 starting in 2030 (guesses, check ssa.gov to get your real PIAs)

Go to Investigate tab and click radio button Solve for spending level at 95% success rate

Result is $151,954/year.

NICE ADVICE


im have similar portfolio and wondering when the best time to launch.

just have to talk my wife into it LOL

 

[Zen of Conscious Living]

I would stick around until Nov 2025 to collect the $250K. 7 months = $250K, suck it up. It's worth it.

Instead of buying a vacation home in Hilton Head, buy resale timeshare for next to nothing. I travel 3 months a year with timeshare, Hilton Head, Palm Desert, Hawaii, anywhere that I want and I normally book 2BR to have more space and option to invite others. My maintenance fees is about $15K a year, and it is much cheaper than owning a home and maintenance costs. That $350K-$500K will continue to grow and generate income for you. I also don't think you have room in your savings to afford that second home in Hilton Head. $1.4M + $500K does not leave room for a second home. To learn more about timesharing, go to tugbbs.com. We are a friendly group there and share everything there is to know about timesharing, i.e. satisfying that champagne taste bud with beer budget.

As someone said above, SS age 67 will not get you max of $5K, unless you are including your wife's SS in the number.

 

[Zen of Conscious Living]

I wouldn't want a TIMESHARE if you Gave it to me!!! With forward planning, you can go anywhere you want for a planned out reasonable cost/s!

 

[NeilDH]

Your numbers are eerily close to mine, and I think you're older (in your low 60s? vs. my mid-50s). The travel and Hilton Head house purchase are key questions that could make it a little tight, but you're looking pretty good for $120K spending a year, as pb4uski said above with the preliminary FIREcalc estimate. (You can set that Investigate option to have a 100% success rate, too.) I'm running about a $120K/year result at 95% success with slightly lower SS and probably a half dozen more years to go than you to start claiming it (at 67). If I drop my portfolio a few hundred thousand (say, in my case, because my deferred payment value is not guaranteed), I drop to about $110K/year. So you have that to consider, too, if you make that extra house purchase.

It's so tempting to wait a little to get that extra $250K to really seal the deal, but I'm sure it's also very tempting to retire as soon as you can. And you have quite good reasons to do the latter.

 

[Zen of Conscious Living]

[MOD EDIT] You do you and we do us . Most of us who know how to timeshare the right way accumulate more, instead of giving away our timeshare. If you buy a second home, you put down a chunk of money that doesn't grow for you. Then there is the maintenance headache and costs that go with it.

Sorry but I am on Board with you couldn't GIVE ME a Timeshare for FREE. Never would I want anything to do with THAT Trap!

 

[palomalou]

A little off. “In 2024, the maximum amount someone can receive in Social Security retirement benefits is $3,822 per month if they retire at 67. Estimates of the 2025 COLA is 2.5%, so $3,917 per month.

To get $5k/month you’ll have to wait until about 70.

Perhaps the poster is married?

 

[cgm66046]

I like your thinking. I grew up with very little material, but a whole lot of love. I've lived an extremely blessed life, and actually look forward to living a quieter more stress free life. As long as I have my kids, grandkids and bikes to ride we are very happy.

We are in a very similar situation, what you said here is huge.

I’m pretty sure I’m going to pull the pin.

Wish you well, good luck.

 

[latexman]

Perhaps the poster is married?

The poster is married, but said, “I should max out on SS which should be around 5k or more a month at 67” (emphasis mine).

 

[BGH1]

People who understand how to use timeshare get tremendous value. Rule number 1 is not to buy from the developer. All the nightmare that you read and hear about is that people spend way too much to buy from the developer. There is no value even when you amortize the purchase price over the life of keeping it, say, 10 to 15 years.

When I say value, an example is that if I were to go to Marriott and book a 1 week stay in a 2BR at Westin Ka'naapali, it costs me about $10K a week. My cost to stay in the same room and resort for a week is about $1,200 to $1,500. If you do that for 3 months, you can see how much I save. Even if you say, I don't want to cough up top dollars and prefer to stay at a crummier place, it will still cost you $3K to $4K a week. I get to exchange to up to 3000 locations and resorts worldwide, but the strength is in the US. I spend 4 to 6 weeks in the winter in Scottsdale - Westin Kierland, a top resort in a 2BR and/or in Westin/Marriott brand resort in a 2BR in Palm Desert. In the summer, I spend a month or two in coastal California. I just returned home after spending a month in Monterey CA. Next year we are going back to Carlsbad area for a month in the summer.

I agree with value of the timeshare if you spend the time to understand the system. We have travelled 7 times to Maui, to st Thomas, St. John, Cancun, Arizona, Las Vegas, st Maarten, on and on, taken family of bucket list trips, fully furnished, I would not be able to do this without our timeshare trades. You need to plan ahead for your trades, for us currently and over the past 12 years it has been awesome.