Do you want to retire and take up traveling? For many, the idea of leaving full-time work and hitting the road is a goal for many people. But for anyone planning significant travel after retirement, preparation is vital. What might this preparation include? Here are five things to consider.
1. Timing Retirement as a Couple. Do you want to travel together as a couple? Then your best bet is to retire at the same time. This ensures no one feels left out and your travel plans can begin without delay. However, if only one of you is a traveler, you may find it more useful to stagger retirement so that one is still building a family nest egg while the other fulfills their travel desires.
2. Downsizing Your Home. Depending on how much you want to be on the road, you may want to downsize your primary home. Keeping up the family home — whether or not it's paid for — as well as travel expenses could deplete your retirement funds much faster than planned. But if you trade in your home for an apartment, for instance, there's less work and cost. Plus you have more money for retirement.
3. Paying Travel Expenses. Full-time or regular travel can be expensive. Depending on how you want to travel, you might need to pay for recreational vehicle expenses, gas, food, and supplies, or even plenty of hotels and meals out. Make sure you're beefing up your retirement funds to accommodate these plans.
4. Having Retirement Phases. If you can retire when your health is good and you're able to go on the road, you must also look beyond these ideal times. At some point, you may no longer be able to (or want to) travel nearly as much. But if you've overspent for the first phase of retirement, you may be underfunded for the second. The best approach may be to plan for two retirements, developing a budget and strategy for both.
5. Earning an Income. One of the best ways to fund extensive travel is to earn an income. For instance, many retirees rent out their primary home on a short-term or long-term basis in order to pay for either home expenses or travel expenses. You might also earn money from travel blogging, online work, or virtual consulting. If any of these will be part of your strategy, you may want to get it set up before retirement to ensure success.
Where to Start
Ready to start planning for your retirement travel? Begin by consulting with a retirement planning professional in your area today. With their help and expertise, your retirement can be a dream come true on any budget.