saving for european vacay in 2055

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Golfer68
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saving for european vacay in 2055

Post by Golfer68 »

Hi,

I am 30 year old who can invest in a Roth this year but next due to a new job with higher salary coming up. My wife and I have a retirement account with real money in it in our respective 401ks. In addition to our joint account we each have our individual play accounts (mine goes to golf, hers clothes) and I would like to take $2,000 of my own play/golf account money now and park it in a roth to grow for the next 35 years for a retirement vacay for us. Would you recommend a target fund or something more aggresive?
Thank you
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catdude
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Re: saving for european vacay in 2055

Post by catdude »

Since you have $2K, stick it in Target Retirement 2055 -- till it grows to the $3K minimum for other Vanguard funds. Once you hit that that 3K threshold, move it to Total Stock Index...
catdude | | All generalizations are false, including this one.
mckaydw
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Re: saving for european vacay in 2055

Post by mckaydw »

30 years seems like an awful long while off to plan a vacation. What if you set aside a few thousand a year for the next couple years and went on that dream vacation now while you're young and your body can fully enjoy it?

Then plan your retirement holistic strategy so you can afford a yearly European vacation if you still want it in 30 years...
Hogan773
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Re: saving for european vacay in 2055

Post by Hogan773 »

I am looking to set aside some money today as I have my eye on the 2052 model Honda Accord Self-Piloting AutoDrone. According to my calcs it will cost $96,799 in 2052 dollars unless I opt for leather seats, in which case it will cost $99,299.

I will be opening a special investment account for this sole purpose
Lake Living
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Re: saving for european vacay in 2055

Post by Lake Living »

Hogan773 wrote:I am looking to set aside some money today as I have my eye on the 2052 model Honda Accord Self-Piloting AutoDrone.
The Accord will have a total redesign for 2053, so it may be worth waiting a year.
Grt2bOutdoors
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Re: saving for european vacay in 2055

Post by Grt2bOutdoors »

Life happens, save $10 grand and go while you still have the ability to do so while you can enjoy it. Don't wait until "retirement" - you might not get there.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Maverick3320
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Re: saving for european vacay in 2055

Post by Maverick3320 »

I clicked on this thinking that for sure 2055 was a typo....nope, it's not.
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Raymond
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Re: saving for european vacay in 2055

Post by Raymond »

If you're not going to touch it for the next thirty-odd years, then go for the appropriate Target Fund.

Personally, I would just invest the $2000 as part of my overall asset allocation, and not have a separate bucket for this.

Don't forget to enjoy life "in the here and now" with your wife :happy :happy
"Ritter, Tod und Teufel"
Topic Author
Golfer68
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Re: saving for european vacay in 2055

Post by Golfer68 »

Very much appreciated advice! and some good chuckles . . . I love the idea of moving the vacay up to 5 years from now contributing 2gs per year so that we can take the vacay when we still have our health. . . . If you were gonna put 2gs per year to cash out in 5-10 years for the vacay how would you invest it?
traveler90
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Re: saving for european vacay in 2055

Post by traveler90 »

Mind sharing where you live/where you will travel from?

It doesn't cost 10k to go to Europe for two people. Wife and I have gone several times and it runs us about 4k for a 10-day trip (using points for the flights)...
FoolStreet
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Re: saving for european vacay in 2055

Post by FoolStreet »

Lake Living wrote:
Hogan773 wrote:I am looking to set aside some money today as I have my eye on the 2052 model Honda Accord Self-Piloting AutoDrone.
The Accord will have a total redesign for 2053, so it may be worth waiting a year.

You two!
PVW
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Re: saving for european vacay in 2055

Post by PVW »

Golfer68 wrote:Hi,

I am 30 year old who can invest in a Roth this year but next due to a new job with higher salary coming up. My wife and I have a retirement account with real money in it in our respective 401ks. In addition to our joint account we each have our individual play accounts (mine goes to golf, hers clothes) and I would like to take $2,000 of my own play/golf account money now and park it in a roth to grow for the next 35 years for a retirement vacay for us. Would you recommend a target fund or something more aggresive?
Thank you
I suggest you invest it in a Vegas trip and try to parlay it into enough funds for a European vacation now. If it doesn't work out, then in 35 years you can sip iced teas on the porch and reminisce about your Vegas trip and all the other fun things you did when you were young enough to enjoy them.
mckaydw
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Re: saving for european vacay in 2055

Post by mckaydw »

Golfer68 wrote:Very much appreciated advice! and some good chuckles . . . I love the idea of moving the vacay up to 5 years from now contributing 2gs per year so that we can take the vacay when we still have our health. . . . If you were gonna put 2gs per year to cash out in 5-10 years for the vacay how would you invest it?
I'd use an online savings account. Or possibly total bond market index. But really this vacation shouldn't be enough of your world to set aside any separate accounts. I'd recommend you develop an overall plan for your money and put this in the same account you would put any other 5-10 year taxable savings like saving up for replacement cars, house down payment, etc.
FullYellowJacket
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Re: saving for european vacay in 2055

Post by FullYellowJacket »

You could take that 2k and go on vacation to Europe right now if you are spartan about it!
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Dutch
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Re: saving for european vacay in 2055

Post by Dutch »

I'd invest in a flux-capacitor
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JupiterJones
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Re: saving for european vacay in 2055

Post by JupiterJones »

First, for some reason this reminds me of that joke about the guy in the old days of the USSR who finally has enough money to order a car. The dealer says, "No problem comrade, it will arrive in exactly 10 years." The guy says, "In the morning or afternoon?". Dealer says, "How could that possibly matter?". Guy says, "The plumber's scheduled for that morning!"

Anyway, I do hope this isn't the only trip you're planning and that you'll be taking a lot of great vacations between now and 2055!

If you're not going to touch it for 35 years, and if it's going to be in a taxable (non-sheltered) account, and if it's only $2,000 of "play money", I would put about 2/3 of it in Total Stock Market and the other 1/3 in Total International. No bonds at all.

Why?

1) Your time horizon is long enough that you can afford to take the risk of a bond-less portfolio

2) In the unlikely event of the whole thing tanking, it wouldn't really affect your life that much (you'd just start saving again, or cash-flow the trip, etc.)

3) Interest income from bonds is (currently) taxed at a typically higher rate than stock dividends. You'll come out ahead, tax-wise, by not having bonds in there, all other things being equal.
"Stay on target! Stay on target!"
William104
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Re: saving for european vacay in 2055

Post by William104 »

Seriously, do it while you're young as my wife and I did. Teach yourself the basics of the credit card point game and you can get an incredible vacation for 2k all in. Plan for two years out, stack up points, and make it happen. We did a 9 day, 3 city, European tour and only paid for food, entertainment, and a train between the cities. We also stayed at some of the nicest hotels in each city, for free.
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Nestegg_User
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Re: saving for european vacay in 2055

Post by Nestegg_User »

For a 2055 vacation, I sure hope it's not Venice :shock:
inbox788
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Re: saving for european vacay in 2055

Post by inbox788 »

Nearing_Destination wrote:For a 2055 vacation, I sure hope it's not Venice :shock:
What's wrong with Venice?

Will you be going to East France or West France? The Ruble is expected to be very weak after WW IV.
forkhorn
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Re: saving for european vacay in 2055

Post by forkhorn »

Golfer68 wrote:Very much appreciated advice! and some good chuckles . . . I love the idea of moving the vacay up to 5 years from now contributing 2gs per year so that we can take the vacay when we still have our health. . . . If you were gonna put 2gs per year to cash out in 5-10 years for the vacay how would you invest it?
I'm not sure if this is a joke or not, but I'm going to try and be serious and helpful....

Dude, you are way, way, way overplanning here. Don't adjust the plan to take the vacation in 2050. Don't adjust the retirement vacation plan at all. Just throw it out! You have no idea what you'll even want to do in 25 years. It's beyond ridiculous to think you have any idea what you'll want to do then, and even if it wasn't, a separate account is just silly. Before you know it you'll have a thousand accounts for various things you plan on purchasing years in the future. You have taken some well-meaning financial advice too much to heart here.

Just save the retirement money in a Roth or 401k or wherever it makes sense. Who cares if it will be used for food, footwear, or travel when you are retired?

When you save up enough money to feel comfortable doing it, take your trip. And if you do save up $2k/year for a few years to take your vacation, don't put it in a roth. Just save it as cash or CDs or if you must invest it, in something that is mostly bonds.

Also, as others have said, learn to play the airline/hotel/credit card game a little and go next year on $4k (or much less).
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Will do good
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Re: saving for european vacay in 2055

Post by Will do good »

Even for most BHs, you are planning way too far out. Save as much as you can today, but also enjoy some of todays as well.

Eastern Europe is reasonable, so is Mexico, South America or Asia. During off season you can go to Asia for about $2k for the 2 of you, if you are willing to stay at cheaper places and eat local food. Enjoy.
Topic Author
Golfer68
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Re: saving for european vacay in 2055

Post by Golfer68 »

Much appreciated! I think I will do the following . . . continue to save real money with wife, put 2g of my own money into a roth using vanguard target 2055 and pull it out to enjoy my ireland golf trip when I retire. . . in the meanwhile I will also save year by year for yearly vacations and learn the credit card game to enhance those yearly vacations! Thank you very much!
MoonOrb
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Re: saving for european vacay in 2055

Post by MoonOrb »

Golfer68 wrote:Very much appreciated advice! and some good chuckles . . . I love the idea of moving the vacay up to 5 years from now contributing 2gs per year so that we can take the vacay when we still have our health. . . . If you were gonna put 2gs per year to cash out in 5-10 years for the vacay how would you invest it?
If it's five years I'd put this in a bond fund or a CD or in a moneymarket account. If it's ten years I'd probably think that's too far out to plan for and just put it all in Total Stock Market and then worry about it again in five years.

I think it's awesome to enjoy life right now while you can and I'd also ask myself if there are choices I can make that can allow me to enjoy my life AND max out all tax advantaged accounts (in other words, are there things you can do so you're contributing the max to your 401k and your Roths?; I'm guessing you're not going to give up golf entirely for the next five years, suggesting you have more than $2k/year in extra discretionary income--if your wife also has that amount, that starts to add up to real money that could be invested instead of consumed).

Another way to reframe your question would be to ask whether there are steps you can begin taking now so that you can retire in 2055; if you can make that happen, you can also take an epic trip in 2055, probably.

Also, if you want to travel you should do as much as you can while you can. There are definitely ways to stretch travel budgets that allow you to get a decent amount of bang for your buck--Mrs MoonOrb and I just spent 15 days in Paris a few months ago--total cost of the trip was probably around $4k for two of us and we didn't feel like we were missing out on anything we wanted to do.
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zaboomafoozarg
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Re: saving for european vacay in 2055

Post by zaboomafoozarg »

Maverick3320 wrote:I clicked on this thinking that for sure 2055 was a typo....nope, it's not.
#JustBogleheadsThings
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TinkerPDX
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Re: saving for european vacay in 2055

Post by TinkerPDX »

Raymond wrote:If you're not going to touch it for the next thirty-odd years, then go for the appropriate Target Fund.

Personally, I would just invest the $2000 as part of my overall asset allocation, and not have a separate bucket for this.

Don't forget to enjoy life "in the here and now" with your wife :happy :happy
The way I see it, about 1 in 4 dollars (and their earnings) I put into the retirement account is for vacations, or if things go well, maybe more like 1 in 2.

I would instead think of the marginal value of money you put into the account whenever you're considering it - retiring a day/week/month earlier, a first-class upgrade, a whole vacation, a nice meal, or whatever other consumption items you would like to have during your retirement/financially independent years.
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celia
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Re: saving for european vacay in 2055

Post by celia »

inbox788 wrote:
Nearing_Destination wrote:For a 2055 vacation, I sure hope it's not Venice :shock:
What's wrong with Venice?
Venice is slowly sinking and may be underwater (literally) by then. Just bring your snorkel gear along!
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Watty
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Re: saving for european vacay in 2055

Post by Watty »

traveler90 wrote:Mind sharing where you live/where you will travel from?

It doesn't cost 10k to go to Europe for two people. Wife and I have gone several times and it runs us about 4k for a 10-day trip (using points for the flights)...
+1000

But traveler90 is just bragging about his or her expensive trip. :D

One of the great things about Southern Europe is that except for airfare you can travel there for a lot less than you can in the US especially if you go in the shoulder season. One of the things to realize is that a carefully selected budget hotel in Europe is often a nice small family owned place with maybe a dozen rooms. In the US a budget hotel is often a Motel 6 that has seen better days. And the dollar is strong right now.

I retired in 2015 and I went to Spain last year for three and a half weeks and we never paid more than $100 a night for a hotel. These were mainly nice family hotels hotels but there were also a many nights where I got deals at a Hilton or Condos that they were looking to fill.

A few years ago we went to the Greek Islands in mid September when the weather was wonderful but on some of the less well known islands you can get nice mid-range hotel rooms for about $30 a night! I just checked and on Naxos there are lots of them for $30 or less in late September. Many of these places cost almost $200 a night in August.

https://www.expedia.com/Hotel-Search?_x ... sort=price

We are going to England, France, and Belgium this spring using credit card points for the flights. We will be spending some time in London and Paris which will be more expensive but overall the total trip should not be terribly expensive.

There are lots of good deals on flights to Europe now so check to see what you can find on Google Flights.

We don't get into the more advanced generation of frequent flyer miles but one simple thing to do is to sign up for the Airline Frequent Flyer programs and you might see something like 30,000 mile bonus for getting their credit card. Don't sign up for it but if you wait a few months you will likely start getting mail with offering you 50K or 60K miles to get their credit card. When you get it do not get a card for your spouse. A few months after you get your bonus then he or she can get their own card and get the signup bonus too.
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Nestegg_User
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Re: saving for european vacay in 2055

Post by Nestegg_User »

inbox788 wrote:
Nearing_Destination wrote:For a 2055 vacation, I sure hope it's not Venice :shock:
What's wrong with Venice?
Nothing wrong with it Today -- but at the rate it's sinking, a visit in 2055 might be a bit too late.
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Watty
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Re: saving for european vacay in 2055

Post by Watty »

Nearing_Destination wrote:
inbox788 wrote:
Nearing_Destination wrote:For a 2055 vacation, I sure hope it's not Venice :shock:
What's wrong with Venice?
Nothing wrong with it Today -- but at the rate it's sinking, a visit in 2055 might be a bit too late.
As I recall the sinking is especially a problem since the way that they built the foundations with special wooden pilings and special stone for the first few feet has worked very well. Once the water gets above the first layer it then causes all sorts of problems with the stonework that was not meant to be exposed to water. If this happens even a few times a year during very high tides and storms it can have a big impact.
sawhorse
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Re: saving for european vacay in 2055

Post by sawhorse »

Wow, you are really thinking ahead! Perhaps too much. A lot will happen in the world and to you in the next 35 years. I see two major risks with having a vacation fund to be used in 35 years.

First, you might not be able to take that vacation. I'm only a few years older than you and can't travel due to health problems. You may have a special needs child that will keep you from retiring. You may lose all your money and not be able to retire.

Second, what if you don't enjoy the trip, or something goes wrong on the trip? It would feel awful to know you've saved 35 years for a trip that didn't live up to your expectations.

Don't wait so long. You're still young enough to do the "Europe with a backpack" adventure if you don't want to spend a lot.
richardglm
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Re: saving for european vacay in 2055

Post by richardglm »

While you are young, cram yourself into some economy seats during the low season, stay in some cheaper hotels, and avoid all the massively overpriced cruises and tours. Visit only 1, maybe 2 cities/week to limit transportation cost.

I recently did a Europe trip for business, expenses barely came to $2.5k
neilpilot
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Re: saving for european vacay in 2055

Post by neilpilot »

traveler90 wrote:Mind sharing where you live/where you will travel from?

It doesn't cost 10k to go to Europe for two people. Wife and I have gone several times and it runs us about 4k for a 10-day trip (using points for the flights)...
We have vacationed in Europe every 12-18 months, and it really has not been too expensive, especially if you avoid high season. We often go in December-thru-March, and would never go in summer when it's often too hot and with long lines.

We were last in Spain in March 2016, and just booked a 3 week trip for this May. Our RT tickets on Iberia cost $440 from Boston. That covers 3 flights, since our destination is the somewhat remote island of Menorca. I would guess that if we had only book the initial leg (Boston to Madrid) the ticket price might have been even lower.

And the Euro is relatively cheap now, at about $1.06.
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