The Entrust Experience
Right about now many of us are beginning to look forward to vacation and summer travel plans. Ever since school days as a kid, there has been something about June, July, and August that signals a change of pace, relaxation, and fun. In fact, planning to fund vacations and travel heads the list of priorities for most Entrust clients, right up there with wealth planning goals for assuring financial security and independence.
 
The money you need for travel
Whether you prefer to pay as you go for family holidays or aspire to establish a travel fund, you are likely to spend less if you take the time to strategize before heading out of town. We suggest you begin by considering the following:
 
  1. Based on your family income, how much are you comfortable spending on travel each year? 
    This looks easy but may not be. For example, we often find this conversation with clients can be difficult because spouses may have different or even opposing ideas about what is "comfortable" financially for this particular goal. Another challenge can be that one spouse prefers to direct all the travel dollars into one luxury trip and the other would rather travel as cheaply as possible so the budgeted vacation dollars stretch farther, covering two trips each year.
     
  2. With your comfortable spending number in mind–and do be precise–consider what part of your income you can direct into your annual travel fund. 
    Directing a specific portion of your income into your travel fund can be quite effective. For instance, executives often direct their annual bonus into the family travel fund, retirees often designate their social security incomes as their travel fund, or a specific investment account not required for current income, such as an inherited account, may be earmarked as travel funds.
     
  3. Now you are ready to brainstorm your favorite places to visit and then determine the cost to do so in the style you prefer. Assuming your travel fund covers the cost, you are ready to map out your itinerary. 
Joslyn and Mckenzie offer more thoughts about funding your travel plans:

 


Stay tuned
Another popular way to fulfill your aspirations for a change of pace, relaxation and fun is to purchase a vacation home. Just like the three considerations above, a good place to begin your thinking is by determining: 1) how much you are comfortable spending each year for a vacation home; 2) what portion of your income might be dedicated to paying for your vacation home; 3) where the home needs to be for maximum enjoyment or rental income earning potential when you are not using it. Not surprisingly these issues are fraught with financial risk. Stay tuned because we will address them in our July newsletter.
 
Meanwhile, we would be delighted to facilitate a discussion about establishing a travel fund for you and your family. Contact us today: info@entrustfinancial.com  or 610-678-3515.
 
 Not a promise of any particular investment result; not to be considered tax or legal advice. Actual investment return and principal value of equities, bonds, and mutual funds will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  There are risks associated with investing, including the risk of loss of principal.  There is no assurance that a diversified portfolio will result in better returns than an undiversified portfolio, nor  does diversification assure against market loss. 

 
 
 |   |  Forward to a Friend



Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP, which it awards to individuals who successfully complete initial and ongoing certification requirements. Disclosure

Copyright © 2015  Entrust Financial, LLC®  All rights reserved.