What percentage of your annual expenditures are you targeting for travel once you are retired?

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TheTimeLord
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What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by TheTimeLord » Mon Nov 20, 2017 2:48 pm

What percentage of your annual expenditures are you targeting for travel once you are retired? In our case it is looking like somewhere in the 25%-35% range if we followthrough on plans.
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midareff
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by midareff » Mon Nov 20, 2017 2:59 pm

TheTimeLord wrote:
Mon Nov 20, 2017 2:48 pm
What percentage of your annual expenditures are you targeting for travel once you are retired? In our case it is looking like somewhere in the 25%-35% range if we followthrough on plans.
Expenses look like $8200 a month including IRS Quarterly payments and the purchase of a new car not expected until March. Besides that about $4500 a month is earmarked for travel.

Ron Scott
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by Ron Scott » Mon Nov 20, 2017 3:06 pm

25%, give or take.

jebmke
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by jebmke » Mon Nov 20, 2017 3:19 pm

Don't have spending targets. Budget I did before I retired had about 5% but we are running below that quite a bit most years.
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The Wizard
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by The Wizard » Mon Nov 20, 2017 3:35 pm

I'd have to add up the numbers to get the answer and I'm not inclined to do that.
But I'm guessing I spend around $3000 a month on discretionary travel on average. This is obviously a combination of expenses for future travel such as plane tickets along with charges for travel just completed such as hotels and meals.
Although I'm single, I generally pay a portion of my GF's expenses when she's on a trip with me...
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cadreamer2015
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by cadreamer2015 » Mon Nov 20, 2017 3:41 pm

About 15-20% of after income tax spending.
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flyingaway
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by flyingaway » Mon Nov 20, 2017 4:07 pm

Currently about 12.5%, want to double or triple that with OMYs.

Good Listener
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by Good Listener » Mon Nov 20, 2017 4:40 pm

Zero. This might be heresy as most seem to think that travel is part of retirement, but I did travel a lot including internationally when I worked. I do not like to travel, I do not like hotels, and i do not like to pack. I like my own bed. Now I have traveled zero days in my 1 year of retirement. If I do go somewhere, I will definitely never fly again but that's more TSA, inconvenience and terror related. Ok, shoot me.

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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by soccerrules » Mon Nov 20, 2017 4:45 pm

I'm 7-8 years out from launch, but looking at 12% currently.
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EnjoyIt
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by EnjoyIt » Mon Nov 20, 2017 4:45 pm

Our travel expenses are part of our discretionary spending which will vary based on our desires for that month or year. Our expected retirement budget has discretionary spending at 50% based on current property tax, utility cost, and what we currently spend on groceries and healthcare. That number should hopefully increase when on Medicare. I suspect during good financial years we may spend a little more and during poor years we will likely spend a whole lot less. It adds some confidence knowing we can always cut our expenses in half and still live comfortably but without purchasing toys and travel.

rick0
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by rick0 » Mon Nov 20, 2017 7:04 pm

I'm spending around 20% now. The way investments have gone up in the last couple of years, I could probably bump this up a little. And I may need to decrease it a bit after the next market crash - its discretionary spending!

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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by radiowave » Mon Nov 20, 2017 7:12 pm

About 3-5 years out, initial planning numbers for travel (discretionary) about $5-10k/yr which is roughly 10-15% of anticipated annual expenditures. Bucket list includes: South America - Chile/Argentina Patagonia and possibly Antarctica; Mongolia (long story); and Alaska.
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MikeG62
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by MikeG62 » Mon Nov 20, 2017 8:16 pm

Completing second full year of retirement. Our T&E spend is about 1/3rd of our total spend.

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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by AlohaJoe » Mon Nov 20, 2017 8:22 pm

TheTimeLord wrote:
Mon Nov 20, 2017 2:48 pm
What percentage of your annual expenditures are you targeting for travel once you are retired? In our case it is looking like somewhere in the 25%-35% range if we followthrough on plans.
Somewhere between 50% and 95%, depending on how much travel I feel like at any given point in time.

neilpilot
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by neilpilot » Mon Nov 20, 2017 11:03 pm

Currently 27% of our pre-tax expenses go towards travel. Of that total, around 45% covers the total operating cost (fixed and variable) of our airplane.

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dccboone
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by dccboone » Mon Nov 20, 2017 11:19 pm

18 months out and approximately 10% of projected annual retirement budget is allocated to travel.

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CyberBob
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by CyberBob » Mon Nov 20, 2017 11:22 pm

Good Listener wrote:
Mon Nov 20, 2017 4:40 pm
Zero. This might be heresy as most seem to think that travel is part of retirement, but I did travel a lot including internationally when I worked. I do not like to travel, I do not like hotels, and i do not like to pack. I like my own bed. Now I have traveled zero days in my 1 year of retirement. If I do go somewhere, I will definitely never fly again but that's more TSA, inconvenience and terror related. Ok, shoot me.
Zero for me too. I also traveled extensively during my working career including living for extended periods in Europe and Asia. I retired early partly due to the money I saved by never having a permanent home for years at a time. I also retired early partly so that I could end the travel.

curmudgeon
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by curmudgeon » Mon Nov 20, 2017 11:49 pm

We currently have a target travel allowance of about 50% of total budget, which in dollars is probably about 2.5x what we spent on travel pre-retirement.

As we transitioned to retirement, we've also rearranged some other aspects of our lifestyle which have somewhat reduced expenses in our housing and auto expenses. We also are able to control our MAGI to keep under the ACA cliff (without having to hold our expenses down to that level), so our income tax and medical insurance costs are currently quite low. This puts us at a fairly conservative WR overall (about 3.3%), but it fits us comfortably.

If something came up requiring moderate additional expenses, losing the ACA subsidy for example, we'd probably just increase the total budget rather than cut travel. If the markets really tanked and hit our equity-heavy portfolio hard, we would likely cut back significantly on travel. If the markets do especially well, we may increase charitable donations or otherwise dispose of assets, but we probably wouldn't increase the travel budget.

flyingaway
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by flyingaway » Tue Nov 21, 2017 9:27 am

I thought about this issue last night. If I am on travel a lot, there is no need for me to keep my current house. If I should sell my house, the savings from property tax and insurance would double my estimated travel budget, not even count the house money.
But that has to wait until my younger son graduates from college and find a job, which will be 2 years away. Two OMYs.

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randomizer
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Re: What percentage of your annual expenditures are you targeting for travel once you are retired?

Post by randomizer » Tue Nov 21, 2017 9:34 am

24.46%, if my calculations are correct...
75:25 AA / Expected retirement: 2097

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