…. And at what point is it “too long” in any given year?
We are targeting around 3-4 months a year to travel, but wonder if after several years of it, seeing new countries might become less fulfilling.
We’d like to leave some money, but we aren’t fixated on an amount and we will spend as much as we can and need while we are alive. We’re more likely to give them some before we pass so that they are young enough themselves to need and enjoy it. Our kids are very responsible with money so they will likely have already saved for retirement. They also have good college savings for the grandkids, although we do help by adding $ monthly to their 529s. So in general, we’d rather give to them while we are alive.
What are your plans for heirs?
We (56M/60F) are in the position of loving our jobs, so we are really only working another 12-24 months to ensure a very chubby travel budget. We’re planning on about $100K per year for travel. That includes at least one bigger trip per year with kids and grandkids (total 5 adults, two kids).
We typically travel first/business but are willing to give some of that up except for international. (But for the kids-premium economy 😂). The only thing we are “set” on (at least for now) is an annual one-month stay on a lake over the summer months (AirBnB prob).
What’s your travel budget? How much are you traveling? What kind of accommodations? Hotels or AirBnB? Cruises? All-inclusives? Are you bringing extended family? Is your budget enough? Would you want to travel more? Or is there a time where you’re like, nah we got tired of too much travel? Thank you for your perspectives!
“While exact, official federal decile data fluctuates based on specific tax years, analyzed data from the U.S. Census Bureau and the Bureau of Labor Statistics highlights a massive divide between the lowest and highest income percentiles for retired households. [1, 2]
Estimated Annual Income by Decile (Households 65+)
(From OP- I only included the top 5 deciles here)
5th Decile (Median - 50%)
Around $56,680
The true middle. Income is evenly split between Social Security, employer pensions, and occasional part-time work.
6th Decile (50% to 60%)
$56,680 – $72,000
Increased influence of traditional pensions and structured 401(k)/IRAwithdrawals.l
7th Decile (60% to 70%)
$72,000 – $92,000
Substantial private savings distributions begin to rival the household's Social Security income baseline.
8th Decile (70% to 80%)
$92,000 – $125,000
Asset-driven income (dividends, real estate/rent, interest) becomes a primary driver.
9th Decile (80% to 90%)
$125,000 – $188,000
High retirement-account balances. Pensions and savings make up over a quarter of all revenue.
10th Decile (Top 10%)
Over $188,000
Driven by active wages/business earnings (39% of total mix) and significant investment portfolio returns.
How Income Sources Vary by Decile
The drastic gap between deciles exists because the types of income change entirely as you move up the wealth ladder:
The Top 20%: Rely primarily on earned wages and market assets. Over 39% of their total income comes from ongoing employment or business earnings, and 18% comes directly from investment dividends, interest, or rental properties. Because of these heavy market ties, a small percentage of wealthy retirees pulls the national "mean" retirement income up significantly higher than the median. [2, 3]”
[1] https://www.fool.com
[2] https://www.fool.com
[3] https://www.congress.gov
[4] https://www.census.gov
We’ll already be in a high enough bracket that RMDs won’t impact IRMMA nor our social security being taxed. And we’d rather have more money now while we can maximize it in our go go years. Kids are getting gifts along the way and won’t mind having to use what’s left over 10 years, so that’s not a concern. Curious what others think?