travel budget in retirement

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jarhead1
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travel budget in retirement

Post by jarhead1 » Mon Apr 22, 2019 2:12 pm

How much in percentage of annual income do you budget for travel as a retiree?
Thanks in advance.
cjh

RadAudit
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Re: travel budget in retirement

Post by RadAudit » Mon Apr 22, 2019 2:30 pm

I don't project a travel budget as a % of income. It's more like the observation that work expands to fill the time available. Travel expands to fill the income available. Or as DW once said - Oh, look!! We've got about two weeks when the team is out of town on away games. We can go on a cruise.

But the answer is north of at least 10%. Way north of 10%.
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THY4373
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Re: travel budget in retirement

Post by THY4373 » Mon Apr 22, 2019 2:43 pm

Without knowing any details this is sort of like asking how long a string is. Basically what sort of travel are you looking at? Camping in the US is likely going to be a lot less than travelling around Europe staying in five star hotels and flying first class.

delamer
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Re: travel budget in retirement

Post by delamer » Mon Apr 22, 2019 2:44 pm

I don’t see that a percentage allocation is a good way to look at travel. The cost of travel is highly variable depending on the type and frequency. Some people are happy to live in a small condo if it enables them to spend a lot on international travel. Others want a larger home and are satisfied with a one week Caribbean cruise in terms of travel.

My guess is that we’ll spend $15,000 to $25,000 per year.

quantAndHold
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Re: travel budget in retirement

Post by quantAndHold » Mon Apr 22, 2019 3:17 pm

RadAudit wrote:
Mon Apr 22, 2019 2:30 pm
I don't project a travel budget as a % of income. It's more like the observation that work expands to fill the time available. Travel expands to fill the income available. Or as DW once said - Oh, look!! We've got about two weeks when the team is out of town on away games. We can go on a cruise.

But the answer is north of at least 10%. Way north of 10%.
This is the truth.

Travel is our largest budget item, followed closely by healthcare (including insurance). Everything else is small potatoes.

If we had less money available, travel would cost less.

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GerryL
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Re: travel budget in retirement

Post by GerryL » Mon Apr 22, 2019 3:30 pm

Looking at Quicken, it appears that I spent almost 40% on Recreation last year, which includes mostly travel but not all dining when meals are not included. (This figure is post-tax ... but then I didn't pay any Fed taxes last year.)

I've decided to get a lot of travel in while I am still enjoying it, so I am spending freely -- although within my overall annual spend target. This year my Recreation expenses already account for more than 60% of spending, but I tend to frontload the year and have already made a deposit on a 2020 trip.

So, like others, I don't budget for travel; I just keep an eye on overall expenses and enjoy my retirement. (Just back from a volunteer-focused trip to Florida and have to start getting ready for the upcoming cruise around Iberian Peninsula, France and to London. Whee!)

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fortfun
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Re: travel budget in retirement

Post by fortfun » Mon Apr 22, 2019 6:36 pm

Will partly depend if you plan to churn credit card bonuses or not. DW and I have paid for a significant portion of travel the past two years using this technique. I'd say we easily make $5k/year on bonuses.

Oleanmike
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Re: travel budget in retirement

Post by Oleanmike » Mon Apr 22, 2019 7:22 pm

We don't "budget" but average about $15K per year in travel. We like to do two big trips, usually cruises in international locations. Plus a couple trips per year to see our daughter and her family in Virginia.

flyingaway
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Re: travel budget in retirement

Post by flyingaway » Mon Apr 22, 2019 7:26 pm

I hope to spend at least 30% of my annual expenses on travel in the first 10 years of retirement. After that, probably around 15%.

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Re: travel budget in retirement

Post by AlohaJoe » Mon Apr 22, 2019 7:52 pm

jarhead1 wrote:
Mon Apr 22, 2019 2:12 pm
How much in percentage of annual income do you budget for travel as a retiree?
It varies from year to year (not all locations cost the same; when you're retired you travel as much or as little as you feel like it; etc) but looking at my records it is usually 40-60% of our annual budget.

I don't really expect it to go down. I expect that our desire to travel goes down we'll simply spend more on each individual trip.

UpperNwGuy
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Re: travel budget in retirement

Post by UpperNwGuy » Mon Apr 22, 2019 8:06 pm

Between 8 and 10 percent.

DonIce
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Re: travel budget in retirement

Post by DonIce » Mon Apr 22, 2019 8:11 pm

100%. Sell the house and all other belongings you can't bring with you in a suitcase and/or a backpack. Travel permanently. Why not?

The Wizard
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Re: travel budget in retirement

Post by The Wizard » Mon Apr 22, 2019 8:13 pm

Similar to others, I don't really budget travel in retirement, starting year 7 a month ago.
I did a month-long 7600 mile roadtrip in March which cost a few bucks with no problem.
I have two European trips coming up this year along with a Caribbean dive trip I need to get planned.
I keep a good sized checking account balance and use that to decide if the next trip is feasible.

I should figure sometime how much of gross retirement income I spend on travel. I'm guessing 40% or more, but it depends on how you count new vehicles...
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tibbitts
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Re: travel budget in retirement

Post by tibbitts » Mon Apr 22, 2019 8:23 pm

fortfun wrote:
Mon Apr 22, 2019 6:36 pm
Will partly depend if you plan to churn credit card bonuses or not. DW and I have paid for a significant portion of travel the past two years using this technique. I'd say we easily make $5k/year on bonuses.
I would say "easily" wouldn't for most of us, who have all we can do to meet the minimum spend for most bonuses. There is a limit to what manufactured spending etc. can do. It really has to be a serious hobby to repeatedly earn $5k/year in bonuses. And a lot of us can't be approved for enough credit cards to earn that much. Plus some cards like Amex only allow one bonus per lifetime.
Last edited by tibbitts on Mon Apr 22, 2019 8:25 pm, edited 1 time in total.

flyingaway
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Re: travel budget in retirement

Post by flyingaway » Mon Apr 22, 2019 8:24 pm

DonIce wrote:
Mon Apr 22, 2019 8:11 pm
100%. Sell the house and all other belongings you can't bring with you in a suitcase and/or a backpack. Travel permanently. Why not?
No health insurance and no taxes paid in the U.S.?

basspond
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Re: travel budget in retirement

Post by basspond » Mon Apr 22, 2019 8:30 pm

What is considered annual income in retirement? I look at my budgeted expenses and it is between 20-30%. It would be a lot less if I based it on my “returns”.

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Re: travel budget in retirement

Post by The Wizard » Mon Apr 22, 2019 8:32 pm

An important thing that I've mentioned many times in the past is to figure what your Desired Income is in retirement, not just your pre retirement expenses.
My pre retirement expenses were less than $50k per year and my post retirement income and expeditures are quite a bit more than that.
This allows me to carry on in reasonable style for 15-20 weeks a year traveling, not just 4-5...
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The Wizard
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Re: travel budget in retirement

Post by The Wizard » Mon Apr 22, 2019 8:40 pm

basspond wrote:
Mon Apr 22, 2019 8:30 pm
What is considered annual income in retirement? I look at my budgeted expenses and it is between 20-30%. It would be a lot less if I based it on my “returns”.
Only you can determine what your retirement "income" is.
You could have a $100k taxable pension.
Or the equivalent taxable portfolio with much less tax...
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miamivice
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Re: travel budget in retirement

Post by miamivice » Mon Apr 22, 2019 8:51 pm

jarhead1 wrote:
Mon Apr 22, 2019 2:12 pm
How much in percentage of annual income do you budget for travel as a retiree?
Thanks in advance.
cjh
I'm not retired and I don't know, however, when I think about it I expect we might travel a lot in the first few years of retirement. After that? Well, after you've seen the world's major attractions once, I don't know you want to keep seeing them again and again. So I would expect that the travel budget would be larger in the first couple years and then decline after that...

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Re: travel budget in retirement

Post by The Wizard » Mon Apr 22, 2019 9:11 pm

miamivice wrote:
Mon Apr 22, 2019 8:51 pm
I'm not retired and I don't know, however, when I think about it I expect we might travel a lot in the first few years of retirement. After that? Well, after you've seen the world's major attractions once, I don't know you want to keep seeing them again and again. So I would expect that the travel budget would be larger in the first couple years and then decline after that...
That's not actually how it works.
You don't go to the Eiffel Tower again and again.
Your travel horizons expand, with Cambodia this time and Madagascar next.
And so on...
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fortfun
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Re: travel budget in retirement

Post by fortfun » Mon Apr 22, 2019 9:11 pm

tibbitts wrote:
Mon Apr 22, 2019 8:23 pm
fortfun wrote:
Mon Apr 22, 2019 6:36 pm
Will partly depend if you plan to churn credit card bonuses or not. DW and I have paid for a significant portion of travel the past two years using this technique. I'd say we easily make $5k/year on bonuses.
I would say "easily" wouldn't for most of us, who have all we can do to meet the minimum spend for most bonuses. There is a limit to what manufactured spending etc. can do. It really has to be a serious hobby to repeatedly earn $5k/year in bonuses. And a lot of us can't be approved for enough credit cards to earn that much. Plus some cards like Amex only allow one bonus per lifetime.
Yes, it helped that we had a 15k roof insurance claim that I was able to put on CC. I have had to move onto business cards due to 5/24 rule but should be back under 5/24 soon. Spending with a family of 4 goes pretty fast, braces, etc. YMMV.

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fortfun
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Re: travel budget in retirement

Post by fortfun » Mon Apr 22, 2019 9:16 pm

The Wizard wrote:
Mon Apr 22, 2019 9:11 pm
miamivice wrote:
Mon Apr 22, 2019 8:51 pm
I'm not retired and I don't know, however, when I think about it I expect we might travel a lot in the first few years of retirement. After that? Well, after you've seen the world's major attractions once, I don't know you want to keep seeing them again and again. So I would expect that the travel budget would be larger in the first couple years and then decline after that...
That's not actually how it works.
You don't go to the Eiffel Tower again and again.
Your travel horizons expand, with Cambodia this time and Madagascar next.
And so on...
Yes! I have a book of all the World Heritage sites. That should keep us busy for a while!
https://www.roadaffair.com/best-unesco- ... age-sites/

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Sandtrap
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Re: travel budget in retirement

Post by Sandtrap » Mon Apr 22, 2019 9:51 pm

My entire portfolio is available to budget for travel and anything else on my and DW bucket list.
They are all "one time" expenses, not reoccurring.
Times running out :shock:
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JDCarpenter
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Re: travel budget in retirement

Post by JDCarpenter » Mon Apr 22, 2019 11:38 pm

First full year of retirement, we were home for less than 11 weeks (healthy, 58 and 57). Spending for travel, even with free business class across the pacific, was 50% greater than our entire non-tax spending in our last full year of work.

Of course, when SHTF and we slash spending, it will be a LOT less. So, it all depends.
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Re: travel budget in retirement

Post by david_that_guy » Tue Apr 23, 2019 6:55 am

My wife and I have spent about $7,000 a year on travel in our first 3 years of retirement (about 11% of total spending). That amount includes a total of 8 weeks in Europe over 3 years with many short domestic trips (within driving distance). We plan to increase that spending in the next few years since we've ended up withdrawing less from our investments than expected as our investments have grown more than expected. Of course, if the market takes a dive, we'll adjust.

As others have said, it all depends on what kind of travel you like and where you're going.

We're very frugal travelers. We fly off season and shop for cheap flights. We stay in guest rooms in AirBnb's or Bread and Breakfasts, we picnic a lot and don't eat in fancy restaurants. We enjoy traveling like this and don't have any desire to stay in fancy hotels, so this is not a sacrifice. We've found that staying in guest rooms is a great way to meet local people and get tips on the best local places to shop and dine. We've had only one slightly bad experience with a host so far, and she was really more weird than unpleasant.

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Re: travel budget in retirement

Post by carolinaman » Tue Apr 23, 2019 6:59 am

jarhead1 wrote:
Mon Apr 22, 2019 2:12 pm
How much in percentage of annual income do you budget for travel as a retiree?
Thanks in advance.
cjh
This is a very individual question. Travel will vary widely depending on the individual and their travel plans. Perhaps your best approach is to budget yearly based upon available funds and travel plans for that year.

SQRT
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Re: travel budget in retirement

Post by SQRT » Tue Apr 23, 2019 7:22 am

carolinaman wrote:
Tue Apr 23, 2019 6:59 am
jarhead1 wrote:
Mon Apr 22, 2019 2:12 pm
How much in percentage of annual income do you budget for travel as a retiree?
Thanks in advance.
cjh
This is a very individual question. Travel will vary widely depending on the individual and their travel plans. Perhaps your best approach is to budget yearly based upon available funds and travel plans for that year.
Agree. This is our approach. Spent more early in retirement 12 years ago. A bit less now. Cut back a little in 2009. 2-3 international trips per year. Always first class. Percentage usually about 10% of after tax spending. Budget isn’t really a constraint at this point. If we want to go on a nice trip, we do.

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Re: travel budget in retirement

Post by The Wizard » Tue Apr 23, 2019 7:31 am

Sandtrap wrote:
Mon Apr 22, 2019 9:51 pm
...They are all "one time" expenses, not reoccurring...
I'm not sure about this part.
I've been traveling to some degree pretty much forever. I was limited to 3-4 weeks a year in the bad old days and now have as much time as I want, limited only by money and certain other factors.

While I could certainly "splurge" a bit in a particular year, I still try to live within (not so much Beneath) my means year to year.
I have $$$ accumulating in my taxable account as my New Vehicle Fund. So if I spent all that on an elaborate cruise, it wouldn't be my best idea...
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Re: travel budget in retirement

Post by ByThePond » Tue Apr 23, 2019 7:45 am

In our first year of retirement, just about 33% of budgeted expenses, but noticeably less than anticipated income.

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Re: travel budget in retirement

Post by JohnFiscal » Tue Apr 23, 2019 7:58 am

I've been using the i-ORP program to plan my annual spending (i-ORP in conjunction with my own spreadsheets). I've included a large-to-me amount of spending for travel for the first 10 years of my retirement (I am now in the first year of retirement). The amount being targeted to what we want to do, rather than being a percent of something. To put a point on it, the amount specifically ranges $10K to $20K. But even that can be spent pretty darn quick with international travel. So, if my annual spending (per ORP) can be $90K per year then it's up to an additional $20K per year ($110K total) for the first some years; ORP allows entry of multiple years worth of one-time expenses.

cap396
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Re: travel budget in retirement

Post by cap396 » Tue Apr 23, 2019 8:11 am

DonIce wrote:
Mon Apr 22, 2019 8:11 pm
100%. Sell the house and all other belongings you can't bring with you in a suitcase and/or a backpack. Travel permanently. Why not?
This is us. We sold everything we own and are now traveling the world full time. We're spending roughly $25,000 a year including an international health insurance policy and an annual trip back to the US to see family.

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Sandtrap
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Re: travel budget in retirement

Post by Sandtrap » Tue Apr 23, 2019 8:26 am

The Wizard wrote:
Tue Apr 23, 2019 7:31 am
Sandtrap wrote:
Mon Apr 22, 2019 9:51 pm
...They are all "one time" expenses, not reoccurring...
I'm not sure about this part.
I've been traveling to some degree pretty much forever. I was limited to 3-4 weeks a year in the bad old days and now have as much time as I want, limited only by money and certain other factors.

While I could certainly "splurge" a bit in a particular year, I still try to live within (not so much Beneath) my means year to year.
I have $$$ accumulating in my taxable account as my New Vehicle Fund. So if I spent all that on an elaborate cruise, it wouldn't be my best idea...
So true.
Everyone is indeed different.
Have to get out and travel while I still have all my pieces and noodles. :shock:
Travel newbie.
:D
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Re: travel budget in retirement

Post by MikeG62 » Tue Apr 23, 2019 1:27 pm

cap396 wrote:
Tue Apr 23, 2019 8:11 am
DonIce wrote:
Mon Apr 22, 2019 8:11 pm
100%. Sell the house and all other belongings you can't bring with you in a suitcase and/or a backpack. Travel permanently. Why not?
This is us. We sold everything we own and are now traveling the world full time. We're spending roughly $25,000 a year including an international health insurance policy and an annual trip back to the US to see family.
You are traveling the world full time and spending only $25,000 per year including health insurance (and an annual trip back to the states). This includes lodging, food and travel costs? How is that possible?
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cap396
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Re: travel budget in retirement

Post by cap396 » Tue Apr 23, 2019 3:05 pm

MikeG62 wrote:
Tue Apr 23, 2019 1:27 pm
cap396 wrote:
Tue Apr 23, 2019 8:11 am
DonIce wrote:
Mon Apr 22, 2019 8:11 pm
100%. Sell the house and all other belongings you can't bring with you in a suitcase and/or a backpack. Travel permanently. Why not?
This is us. We sold everything we own and are now traveling the world full time. We're spending roughly $25,000 a year including an international health insurance policy and an annual trip back to the US to see family.
You are traveling the world full time and spending only $25,000 per year including health insurance (and an annual trip back to the states). This includes lodging, food and travel costs? How is that possible?
I know it sounds crazy, but we're doing it (comfortably) because:
  • We are traveling in cheaper countries (South America right now)
  • Our health insurance is an international policy, which is much cheaper than an US-only policy (currently pay $176/month for two people, $2500 deductible per person
  • We stay in one place for a full month so we can get anywhere between 30%-50% off our Airbnb stay
  • By traveling we don't have bills for electricity, water, cable, internet, car insurance, car payments, car maintenance, gasoline, home repairs, homeowner's insurance, property tax, HOA fees, or cell phone.
For us, it is less expensive to travel the world than it is to live in the US. You can see a full breakdown of our costs at snailtravelers.com.

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Re: travel budget in retirement

Post by flyingaway » Tue Apr 23, 2019 3:23 pm

cap396 wrote:
Tue Apr 23, 2019 3:05 pm
MikeG62 wrote:
Tue Apr 23, 2019 1:27 pm
cap396 wrote:
Tue Apr 23, 2019 8:11 am
DonIce wrote:
Mon Apr 22, 2019 8:11 pm
100%. Sell the house and all other belongings you can't bring with you in a suitcase and/or a backpack. Travel permanently. Why not?
This is us. We sold everything we own and are now traveling the world full time. We're spending roughly $25,000 a year including an international health insurance policy and an annual trip back to the US to see family.
You are traveling the world full time and spending only $25,000 per year including health insurance (and an annual trip back to the states). This includes lodging, food and travel costs? How is that possible?
I know it sounds crazy, but we're doing it (comfortably) because:
  • We are traveling in cheaper countries (South America right now)
  • Our health insurance is an international policy, which is much cheaper than an US-only policy (currently pay $176/month for two people, $2500 deductible per person
  • We stay in one place for a full month so we can get anywhere between 30%-50% off our Airbnb stay
  • By traveling we don't have bills for electricity, water, cable, internet, car insurance, car payments, car maintenance, gasoline, home repairs, homeowner's insurance, property tax, HOA fees, or cell phone.
For us, it is less expensive to travel the world than it is to live in the US. You can see a full breakdown of our costs at snailtravelers.com.
I may want to do that exactly for $80,000 a year, if only I could convince my wife to sell our house and leave her friends.

So, if you travel for years continuously, do you have friends (not family members) in the U.S. that you may value? Do you expect to resume friendship after your travel if you will eventually come back?

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Re: travel budget in retirement

Post by musselpoint » Tue Apr 23, 2019 3:31 pm

cap396 wrote:
Tue Apr 23, 2019 3:05 pm
MikeG62 wrote:
Tue Apr 23, 2019 1:27 pm
cap396 wrote:
Tue Apr 23, 2019 8:11 am
DonIce wrote:
Mon Apr 22, 2019 8:11 pm
100%. Sell the house and all other belongings you can't bring with you in a suitcase and/or a backpack. Travel permanently. Why not?
This is us. We sold everything we own and are now traveling the world full time. We're spending roughly $25,000 a year including an international health insurance policy and an annual trip back to the US to see family.
You are traveling the world full time and spending only $25,000 per year including health insurance (and an annual trip back to the states). This includes lodging, food and travel costs? How is that possible?
I know it sounds crazy, but we're doing it (comfortably) because:
  • We are traveling in cheaper countries (South America right now)
  • Our health insurance is an international policy, which is much cheaper than an US-only policy (currently pay $176/month for two people, $2500 deductible per person
  • We stay in one place for a full month so we can get anywhere between 30%-50% off our Airbnb stay
  • By traveling we don't have bills for electricity, water, cable, internet, car insurance, car payments, car maintenance, gasoline, home repairs, homeowner's insurance, property tax, HOA fees, or cell phone.
For us, it is less expensive to travel the world than it is to live in the US. You can see a full breakdown of our costs at snailtravelers.com.
I plan to read your blog in detail and applaud your approach so don't take this as negative, merely curious. Will you travel in countries that are as if not more expensive than the US (e.g. Aust/NZ, much of Europe) or does your plan by definition not include those?

WhiteMaxima
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Re: travel budget in retirement

Post by WhiteMaxima » Tue Apr 23, 2019 3:40 pm

if you are flexilable, you could pretty much get decent travel at much much lower price. An RT airfare to and from Aisan or European major cities for $499. A longer term stay ABNB during slow season for 1/2 of normal price. If you could exchange your own house, you can travel for 'free'.

cap396
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Re: travel budget in retirement

Post by cap396 » Tue Apr 23, 2019 3:46 pm

flyingaway wrote:
Tue Apr 23, 2019 3:23 pm

So, if you travel for years continuously, do you have friends (not family members) in the U.S. that you may value? Do you expect to resume friendship after your travel if you will eventually come back?
We keep in touch with our friends digitally (email, social media, and facetime)s. It's not the same as getting together in person, but it keeps the friendship alive. Then when we go back to the US for a quick visit (about once a year) we'll try to get together with all our friends during that short period of time.

We also meet new friends as we journey around the world. There is a whole community of people doing the same thing that we are doing.

But there are some times of loneliness, especially when you don't speak the local language.
Last edited by cap396 on Tue Apr 23, 2019 3:53 pm, edited 1 time in total.

cap396
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Re: travel budget in retirement

Post by cap396 » Tue Apr 23, 2019 3:51 pm

musselpoint wrote:
Tue Apr 23, 2019 3:31 pm

I plan to read your blog in detail and applaud your approach so don't take this as negative, merely curious. Will you travel in countries that are as if not more expensive than the US (e.g. Aust/NZ, much of Europe) or does your plan by definition not include those?
We pretty much have to stick to the cheaper countries in order to stay at around $25,000 per year (Latin America, Southeast Asia, Eastern Europe). We'll throw in a more expensive country as a stopover (Australia as a side trip from Indonesia, or France as a side trip from Eastern Europe for example). But we can't spend a long period of time in the more expensive countries unless we were to increase our budget.

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Re: travel budget in retirement

Post by halfnine » Tue Apr 23, 2019 3:52 pm

DonIce wrote:
Mon Apr 22, 2019 8:11 pm
100%. Sell the house and all other belongings you can't bring with you in a suitcase and/or a backpack. Travel permanently. Why not?
Very, very few people travel permanently. Many make the claim but eventually they settle down somewhere. Even travel gets old. But, yes, for those who'd like to make a good run at it there is a good argument for selling the house and belongings and doing it for a while. It is arguably the most cost effective method.

DrGoogle2017
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Re: travel budget in retirement

Post by DrGoogle2017 » Tue Apr 23, 2019 4:06 pm

I have a large budget but I think it will tapper after 5-10 years.

musselpoint
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Re: travel budget in retirement

Post by musselpoint » Tue Apr 23, 2019 6:34 pm

cap396 wrote:
Tue Apr 23, 2019 3:51 pm
musselpoint wrote:
Tue Apr 23, 2019 3:31 pm

I plan to read your blog in detail and applaud your approach so don't take this as negative, merely curious. Will you travel in countries that are as if not more expensive than the US (e.g. Aust/NZ, much of Europe) or does your plan by definition not include those?
We pretty much have to stick to the cheaper countries in order to stay at around $25,000 per year (Latin America, Southeast Asia, Eastern Europe). We'll throw in a more expensive country as a stopover (Australia as a side trip from Indonesia, or France as a side trip from Eastern Europe for example). But we can't spend a long period of time in the more expensive countries unless we were to increase our budget.
Thanks for your response - makes sense, there are plenty of amazing places that can be experienced on a budget. I've bookmarked your site and will live vicariously through your blog (as well as discussions like these on Bogleheads), and look forward to significantly expanding my own travel budget in the not too distant future.

curmudgeon
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Re: travel budget in retirement

Post by curmudgeon » Tue Apr 23, 2019 7:38 pm

Travel is the largest part of our discretionary expenses, and targeted at about 50% of our total expenses presently. It's more a reference limit than a specific budget; sometimes we spend less. We enjoy travel, but it wouldn't be hard for us to cut back significantly on travel dollars.

flyingaway
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Re: travel budget in retirement

Post by flyingaway » Tue Apr 23, 2019 9:03 pm

cap396 wrote:
Tue Apr 23, 2019 3:46 pm
flyingaway wrote:
Tue Apr 23, 2019 3:23 pm

So, if you travel for years continuously, do you have friends (not family members) in the U.S. that you may value? Do you expect to resume friendship after your travel if you will eventually come back?
We keep in touch with our friends digitally (email, social media, and facetime)s. It's not the same as getting together in person, but it keeps the friendship alive. Then when we go back to the US for a quick visit (about once a year) we'll try to get together with all our friends during that short period of time.

We also meet new friends as we journey around the world. There is a whole community of people doing the same thing that we are doing.

But there are some times of loneliness, especially when you don't speak the local language.
Thank you. I read a few pages of your blogs, which are interesting. I have read many blogs, so most concepts are not new to me.

We have friends with whom we meet and play regularly. While we can communicate with them digitally, the nature of the friends will certainly change. It is unlikely to get back to the same with a few years of absence.

Do you know how long will you be out to travel like that? Any exit plan?

cap396
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Re: travel budget in retirement

Post by cap396 » Wed Apr 24, 2019 7:22 am

flyingaway wrote:
Tue Apr 23, 2019 9:03 pm

Do you know how long will you be out to travel like that? Any exit plan?
No exit plan right now. We love what we are doing and plan to keep at it for the foreseeable future. We may eventually settle down overseas somewhere, but that is probably a long ways off.

MikeG62
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Re: travel budget in retirement

Post by MikeG62 » Wed Apr 24, 2019 8:17 am

jarhead1 wrote:
Mon Apr 22, 2019 2:12 pm
How much in percentage of annual income do you budget for travel as a retiree?
Thanks in advance.
cjh
As others have said, it depends on how much travel you plan to do.

DW and I (in our 4th year of early retirement) are taking 6-8 trips (requiring air travel) per year. Our T&E budget is roughly 1/3rd of our total budget and by far the single largest line item.

I would build a bottoms up budget for your spending and include what you think is reasonable for T&E. Make sure your income will cover all that.
Real Knowledge Comes Only From Experience

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goingup
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Re: travel budget in retirement

Post by goingup » Wed Apr 24, 2019 8:22 am

Not entirely sure as we're just now hitting retirement. Looks like 20-25% of annual spending.

flyingaway
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Re: travel budget in retirement

Post by flyingaway » Wed Apr 24, 2019 9:24 pm

cap396 wrote:
Wed Apr 24, 2019 7:22 am
flyingaway wrote:
Tue Apr 23, 2019 9:03 pm

Do you know how long will you be out to travel like that? Any exit plan?
No exit plan right now. We love what we are doing and plan to keep at it for the foreseeable future. We may eventually settle down overseas somewhere, but that is probably a long ways off.
Good luck for your travel.

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