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Saving money for a yearly vacations

Posted: Wed Oct 14, 2020 10:06 pm
by Mario2222
Any recommendations for a good vanguard fund to park money for a yearly vacations?

Re: Saving money for a yearly vacations

Posted: Wed Oct 14, 2020 10:09 pm
by DoubleComma
I just use an ally saving account for this; same as my self-escrow for property taxes.

Re: Saving money for a yearly vacations

Posted: Wed Oct 14, 2020 10:11 pm
by MathWizard
For vacations, I just save in a savings account.

You could use the Vanguard money market fund, but
there is not much of a return.

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 12:03 am
by JD2775
Double post

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 12:09 am
by JD2775
Mario2222 wrote: Wed Oct 14, 2020 10:06 pm Any recommendations for a good vanguard fund to park money for a yearly vaccinations?
Vacations or vaccinations? Answer may differ...

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 1:15 am
by Wannaretireearly
JD2775 wrote: Thu Oct 15, 2020 12:09 am
Mario2222 wrote: Wed Oct 14, 2020 10:06 pm Any recommendations for a good vanguard fund to park money for a yearly vaccinations?
Vacations or vaccinations? Answer may differ...
Lol one is cheaper than the other. Political humor..

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 8:06 am
by CoAndy
Savings account.

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 9:04 am
by midareff
Mario2222 wrote: Wed Oct 14, 2020 10:06 pm Any recommendations for a good vanguard fund to park money for a yearly vaccinations?
It seems to me that many vacation destinations, be they hotels, cruises, air fare, train tours and such need to be booked well in advance and paid well in advance. I just booked a cruise for June of 2022 and our TA was able to obtain an accommodation as a long time customer of having payment in full due May of 2021, instead of December of this year.

I don't want any of our pre-planned travel expenditures sitting in a fund that can fluctuate. We set aside certain amounts monthly that accumulate in an Ally savings account we use for that purpose. Money needed in the short term for travel expense obligations should not be in the market.

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 9:05 am
by wilked
I would use a savings account

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 9:05 am
by UpperNwGuy
Mario2222 wrote: Wed Oct 14, 2020 10:06 pm Any recommendations for a good vanguard fund to park money for a yearly vaccinations?
Vanguard is not the right place for a vacation fund. Try a high yield savings account. I use PenFed. Others use Ally or Marcus.

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 9:12 am
by TomatoTomahto
Kudos for being an optimist. I have a trip to Japan and one to Mexico on my “when it’s safe to travel list” (I am in a high risk group), but I don’t even know when to book them, much less pay for them.

Good on you! :D

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 9:14 am
by Mario2222
I edited my post. It was an error.
Thank you for all your suggestions.

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 9:21 am
by keystone
I think it depends on your financial situation. I think many of us would simply withdraw from the portfolio in a tax friendly manner when it's time to pay for a vacation and don't have a separate "____ fund."

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 9:32 am
by 22twain
keystone wrote: Thu Oct 15, 2020 9:21 am I think it depends on your financial situation.
And on how expensive your vacations are.

We're not into luxury cruises or expensive resorts. Domestic trips are usually 2-3 week road trips at $2K-$3K. Occasional trips to Europe involve visiting friends and relatives, and staying in budget accommodations otherwise. I think the most we've spent on one of those was about $4K in today's dollars.

When we were working, we always had enough cash available in checking and savings accounts to cover them, because we weren't obsessed with having every extra penny invested.

Re: Saving money for a yearly vacations

Posted: Thu Oct 15, 2020 11:54 pm
by drumboy256
So maybe I'm a bit of maverick on this--- but this is what I do for vacations.

Every quarter, I take $500 from our emergency fund to "invest" for vacations and/or large life purchases. The rule of thumb is that you do not take out that $500 dollars until day 366 to get long term capital gains of 15% vs. short term. I then split that $500 80/20 into ITOT and VNQ. We count this money as part of our emergency fund as Fidelity will get to us in about 2-3 days max on a transfer if we had to liquidate.

To me, a HSYA is one thing but with the rates being as low as they are (and getting lower....) there's no point in not investing a small portion of our fund. Most likely a risk tolerance issue for most but you only live once.