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Old 01-01-2018, 03:04 PM
 
Location: Phoenix, AZ > Raleigh, NC
15,075 posts, read 19,019,086 times
Reputation: 24185

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Quote:
Originally Posted by himain View Post
I actually have 150k. I was thinking of using the 50k or less for the trip and investing the other 100k but that's a totally different thread
$150,000 invested at 6% for 20 years = $481,000
$150,000 invested at 6% for 30 years = $861,500

BTW, a more realistic rate of return would probably be 7.5-8%.

So your Round the World trip isn't actually costing you $50,000. It's actually costing you $503,000 (based on an 8% return over 30 years). Tax free (if you're smart) and put it in a Roth IRA.

But you don't wanna hear that, right?
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Old 01-01-2018, 03:11 PM
 
Location: North State (California)
39,592 posts, read 2,991,249 times
Reputation: 12927
Quote:
Originally Posted by Jkgourmet View Post
$150,000 invested at 6% for 20 years = $481,000
$150,000 invested at 6% for 30 years = $861,500

BTW, a more realistic rate of return would probably be 7.5-8%.

So your Round the World trip isn't actually costing you $50,000. It's actually costing you $503,000 (based on an 8% return over 30 years). Tax free (if you're smart) and put it in a Roth IRA.

But you don't wanna hear that, right?

How can I put that much money into a Roth?
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Old 01-01-2018, 03:13 PM
 
Location: Raleigh
8,047 posts, read 5,895,364 times
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There was a recent PBS special about two guys who worked their way back from Shanghai on tramp steamers. That would be a cheap way to go.
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Old 01-01-2018, 03:19 PM
 
Location: North State (California)
39,592 posts, read 2,991,249 times
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Op has not commented on what type of work, if any, she is willing to do. Maybe she doesn't want to do any work while travelling.
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Old 01-01-2018, 04:37 PM
 
Location: Western Washington
8,976 posts, read 8,410,669 times
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Quote:
Originally Posted by Jkgourmet View Post
$150,000 invested at 6% for 20 years = $481,000
$150,000 invested at 6% for 30 years = $861,500

BTW, a more realistic rate of return would probably be 7.5-8%.

So your Round the World trip isn't actually costing you $50,000. It's actually costing you $503,000 (based on an 8% return over 30 years). Tax free (if you're smart) and put it in a Roth IRA.

But you don't wanna hear that, right?
By this logic, a person should never spend any money on themselves over and above what is necessary to fend off starvation. After all, you could have saved a few bucks eating oatmeal for dinner rather than a chicken dinner. Add up all those dollars over the years, compound some interest, and you are talking real money.

OP wants to travel, it sounds like an amazing plan, let her do so without whining at her for what you would do.
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Old 01-01-2018, 05:30 PM
 
11,264 posts, read 8,433,015 times
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I've seen a few countries and it always feels like you can't really "get to know" a place until you've spent more than a couple of days there. If you want to hit the high points (Taj Mahal, Pyramids, Great Wall) then fine. If you want to get to know your favorite places, spend some time at your absolute favorite places.

I'd like to recommend the Tunnel Rat Tour in Okinawa. Camping on the beach in Hawaii was awesome. Sunrise on the Azores was cool. The castles in Germany were pretty awesome.
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Old 01-01-2018, 07:53 PM
 
Location: Cebu, Philippines
4,420 posts, read 1,676,659 times
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I went around the world last year for less than $1,000 air fare, and five weeks on the ground brought the total to about $2,500. My air ticket was three one-way tickets, USA - Manila - Dubai - USA. A side trip from Dubai to Addis Ababa was anothger $250.

For $50K, I could do twenty RTW trips, each one a month long.

By the way, volunteering trips are a complete ripoff. You can find your own meals and lodging cheaper than the daily rate that the trip vendors charge, and you don't have to do anything.

Quote:
Originally Posted by Jkgourmet View Post

So your Round the World trip isn't actually costing you $50,000. It's actually costing you $503,000 (based on an 8% return over 30 years). Tax free (if you're smart) and put it in a Roth IRA.
Yeah, but if he stays home and eats lunch at BK, using the same calculations, his burger will cost him 75 bucks.
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Old 01-02-2018, 07:26 AM
 
304 posts, read 165,818 times
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Geesh, OP asks about travel, not investment advice. Not everyone wants to live the same sort of life as someone else chose to live.

OP, more than 10 years ago I did a RTW trip on way less than $10k. I was very young at the time so didn't mind staying in hostels or renting a small apartment in areas where I wished to stay longer. I didn't eat at fancy restaurants, didn't shop everywhere I went, didn't do expensive tours unless it was something I felt I absolutely needed to see. I traveled a lot by train and was most interested in destinations that tend to be very cheap against the US dollar so it made it all cheaper. I was also most interested in having a chance to get to know the people and place so slowing down helped costs a lot. Most expensive part was passport and plane ticket to and from the US.

OP, it all really depends on what sort of rtw trip you want and how slow you want to travel. You could cut costs by choosing a 'home base' in an area from which to take one or one week trips from. Or you can choose a membership with a hotel company and stay exclusively with them, earning many free nights over the course of your trip. Yes, 50k is very doable for a round the world trip.

As for where you should go, that totally depends on your tastes and interests and how much time you have. I've never been to the African continent, so I'd want to go there, but securing all the visas you'd need could be difficult and you might have to do some of it on the road which could be challenging. I'd probably want to hit up things that I couldn't afford all those years ago, like the TransSiberian railroad, check out lesser traveled places like Mongolia, or some of the Stans. I might be more interested in Europe now than I was back then. But this is all me. What are you interested in? Do you want slow or fast travel? Do you want to see the major tourist sights or off the beaten path? Maybe you can think of a theme that you're interested in, like castles, and then plan the trip around specific castles you want to check out. That might help narrow down locations.

Either way, good luck!
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Old 01-02-2018, 07:32 AM
 
Location: Oklahoma City, OK
4,432 posts, read 4,294,840 times
Reputation: 5220
Quote:
Originally Posted by Jkgourmet View Post
Maybe I'm pragmatic and a kill-joy, but I'd be stashing that $50K into a Roth IRA. Trust me, it will provide several WTW trips if you invest it in good mutual funds and leave it there for a couple of decades.

Signed,
Somebody that didn't **** away money on luxuries earlier in my life and, as a result, retired at 52. We travel a lot.
Amen, brother!
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Old 01-02-2018, 08:26 AM
 
Location: Phoenix, AZ > Raleigh, NC
15,075 posts, read 19,019,086 times
Reputation: 24185
Quote:
Originally Posted by evening sun View Post
How can I put that much money into a Roth?
THAT is totally accurate, and I admit to not even thinking of the annual maximum contributions. (If the OP is self employed, the limits for a SEP are much highr, but based on her actual income.)

My figures were used to make a point. Certainly, I would consider paying off or paying down my mortgage, or other debts. Certainly, the OP SHOULD use some of that money for a little fun. Maybe 10% instead of 33%. She could still do a helluva good trip on $15K.
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