Embarking on a full-time travel adventure in retirement is a dream for many, offering the opportunity to explore new destinations, experience different cultures, and create lasting memories. It’s also a transition that requires careful planning and consideration. Here are four essential factors to consider when planning to travel full-time in retirement.
Start planning well before you retire
Full-time travel can be expensive. Most people will need to start planning long before retirement.
Work on an estimate for your travel plans, accounting for expenses including healthcare, accommodation, and daily living. You can’t control factors like inflation and fluctuating travel costs, but a rough budget can help you understand how much your retirement lifestyle will cost.
Consider working with a financial advisor to develop a comprehensive retirement plan to help you attain your travel and lifestyle goals. Your advisor can help explore financial strategies and plan what to do with your resources in retirement—everything from how much to withdraw from your 401(k) to whether to utilize the cash value of your universal life insurance or whole life insurance.
Consider downsizing
If you plan to spend most of your retirement traveling the country (or the world!), maintaining a large house should be the least of your concerns. Evaluate your living situation and consider moving to a smaller, more manageable home or condo. Since you’ll be living out of your suitcase for most of the year, you may want to declutter by selling or donating items you no longer need.
Depending on the type of travel you’re interested in, you may also consider purchasing an RV that offers flexibility and mobility for your travels.
Get savvy with travel credit cards
The right travel card can help you earn rewards when you book flights, hotels, and cars (so you can travel even more) and provide additional benefits like lounge access or a free checked bag. Research different travel credit card options and choose one that aligns with your travel goals, spending habits, and preferences.
Look for travel credit cards that offer generous sign-up bonuses, flexible redemption options, and valuable travel perks such as credits for travel-related purchases, early boarding, and complimentary upgrades. Pay attention to annual fees, interest rates, and foreign transaction fees to ensure that the benefits outweigh the costs.
Keeping up with friends and family
Traveling full-time in retirement offers an exciting opportunity to explore new places and experience different cultures, but it can also mean spending less time with friends and family. Fortunately, modern technology makes staying connected easier than ever. Regular video calls, social media updates, and shared photo albums can keep you engaged with your loved ones’ lives, even from afar. But your connections don’t all have to be virtual—planning visits home or asking family and friends to meet you during your travels can help you create wonderful new memories together.
The primary purpose of permanent life insurance is to provide a death benefit. Using permanent life insurance accumulated value to supplement retirement income will reduce the death benefit and may affect other aspects of the policy.
Source: iQuanti
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