Are you dreaming of retiring with the ability to travel around the world? The freedom to wander, explore new cultures, and take on once-in-a-lifetime adventures is a popular image of retirement for many. However, if your current finances are too tight to make these dreams a reality, it can be disheartening—but don’t give up just yet!
With some forethought and preparation while still earning money in your current career or job,
Start Putting Money Aside Now for Travel Later
Retirement is a time to relax and live life on your own terms. For many people, that means traveling to new and exciting destinations. But travel can be expensive, and it’s important to start planning and saving early. Setting up a specific high-yield savings account for your travel fund and dedicating a certain amount each month to it is a great way to start. By doing so, you’ll be able to budget for travel expenses in retirement and ensure that you have the means to explore the world without any financial worries.
Forbes lists the following as some of the best high-yield savings accounts available so you can get the most out of your money:
- SoFi
- BMO Alto
- CitBank
- Lending Club
- Bask Bank
- Synchrony
Rates fluctuate, so talk to your financial advisor before deciding which type of account would be best for your travel fund.
Learn How to Use Credit Card Perks for Travel
Credit card points and rewards can be a valuable tool when planning for your travel during retirement. Here are some tips to optimize these rewards:
- Understand your credit card rewards program: Each card’s rewards program is unique, offering different rates for different categories of spending. Make sure you read through the program details to understand where you earn the most points.
- Use credit cards for everyday expenses: Use your credit card for regular, everyday purchases. These points will add up over time without you having to spend extra money.
- Pay Attention to Bonus Offers: Many credit card companies offer introductory bonuses or periodic promotions where you can earn extra points or miles. Keep an eye out for these opportunities.
- Maximize redemption: Points and miles often get the best value when redeemed for travel-related expenses like flights or hotel stays. Always compare the redemption value of points to cash to ensure you are getting the best deal.
Remember, the key to maximizing credit card points and rewards is to pay off your balance in full each month. This way, you avoid interest charges that could outweigh the benefits of your rewards.
Consider Earning a Pilot License Now
Rather than relying on airlines or public transportation, why not get a pilot license now and take control of your travel in retirement? There are schools like FLT Academy, based in Utah, that offer both part- and full-time flight training to fit in with your lifestyle and goals. With a pilot’s license, you can enjoy the freedom of exploring new destinations at your own pace and on your schedule.
Requirements for a pilots license vary, depending on what type of flying you’d like to do and whether you train through Part 141 or Part 61:
Private
- Third-class medical certificate
- 40 hours of ground school training
- 40 hours of flight time
- Pass a check-ride
And who knows? Maybe having a pilot license in retirement will give you an opportunity to work part-time as a flight instructor or charter pilot to keep you busy between personal travels.
Invest in Passive Income Opportunities
Rental property investment can be an excellent way to supplement your retirement income. The rental income generated from the investment can provide a steady stream of passive income, which can be used to fund your travel goals.
With careful management, you can increase the value of your property while enjoying the benefits of rental income and time to explore the world. Investing in rental property is a true win-win strategy for retirees, allowing them to enjoy an enhanced retirement lifestyle without worrying about the financial consequences.
Tips for increasing the value of your rental property from Rhino Property Management:
- Increase energy efficiency – update appliances, install new windows and doors, insulate properly
- Maintain exterior and interior with regular repairs
- Keep pricing competitive but affordable so it doesn’t stay empty long
- Consider furnishing it or providing extras like including Internet access in the rent price
Diversify Retirement Accounts
Planning for retirement is an essential and exciting chapter of life, but it can also be challenging. One of the most crucial decisions you have to make is how to allocate your retirement savings across various investments. Diversifying your retirement accounts is critical, and it entails investing in a range of stocks, bonds, mutual funds, and other investments to balance your portfolio’s risk and reward potential.
This strategy mitigates the risk of significant losses while potentially yielding higher returns over time. In summary, diversification is a smart and proactive approach to secure a comfortable and financially stable retirement. Start today and speak to a financial advisor to help you make informed decisions.
Do Your Homework When It Comes to Travel Insurance
As a retiree, traveling can be an exciting adventure, but it’s important to be prepared for the unexpected. One way to ensure you can enjoy your trip without worry is by researching and selecting a comprehensive travel insurance plan that covers unexpected costs and medical emergencies. With so many options available, it can be overwhelming to choose the right one; NerdWallet ranks the following as some of the best travel insurance options for seniors:
- HTH Travel Insurance
- John Hancock
- TravelSafe
- Seven Corners
- Tin Leg
- World Nomads
By taking the time to compare different plans, you can select the coverage that meets your unique needs and provides peace of mind while you’re exploring new destinations. Remember, investing in the right travel insurance is a small cost compared to the potential financial burden of unexpected expenses or health issues abroad.
Take Advantage of Senior Citizen or Retiree Discounts
As a retiree, you want to make the most out of your budget and take advantage of any special discounts available to you. Thankfully, many airlines and accommodation providers offer discounts exclusively for retirees. With a bit of research, you can enjoy reduced fares or even free flights if you know where to look. Check with AARP for member benefits that include travel deals, or call an airline before booking to find out if they have senior discounts for airfare.
Similarly, you may find discounts for car rentals, cruises, or at National Parks that cater to you. Don’t hesitate to inquire about senior discounts before booking your next trip, as it could save you a significant amount of money.
