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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.
No, the OP SHOULD do whatever the heck she wants with her own dang money. You don't know anything about her financial situation other than what she offered, that she has a lump sum and no debt. Furthermore, she didn't ask for financial advice beyond questions about travel on a specific sum.
Sheesh, the judgement of people who can't stand when others live a different way.
$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?
I'll be sure not to treat myself to a $40 glass of beer at the bar this Friday.
Suggest you work backwards, firstly work out what standard of travel you want. Work out how much a day you need on the average. Look at the airfare cost at the standard you require. Do your sums and see how long your money will last at the standard you are thinking of. Obviously some places are more expensive than others but if you want to stay eg in three or four star places you can get a good idea. When you know how long your trip can be, look at a globe, not a map, not online but an old fashioned globe. See the alternatives in the routes you can take around the world. See the places that most appeal to you. Research how long you want in these places. Do you want to see the highlights or spend longer? Be careful with volunteer tourism, can be wonderful but some of our charities are withdrawing from some Asian orphanage projects because it has been associated with exploitation. Remember when people talk about interacting with locals, that in developed countries they are probably doing exactly what you do at home. Going to work, dropping kids at daycare, shopping, reading their phones. In London and Sydney, they won't want to talk to tourists when getting the train to work.
We spent about $US35,000 going to South America for a month a couple of years ago. That was five star and in some ways was worth the money. But normally we would travel very comfortably for $10k a month and have done it far far cheaper when we were young.
$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?
Right. None of us do since this is useless information.
The world is too big to see on one trip. Its also round and not a straight line so you still have to see a narrow stretch of it to go around it in an orderly fashion. Break the money up into several trips and enjoy each one more fully. The only way I would want to travel around the world would be on a cruise. But then you end up with a lot of sea days and those aren't really seeing the world are they. I can say that the most interesting trip I've ever heard a friend take was a cruise around south america. Like from Florida to California and it took a month. But, a round the world cruise could be done for 50k and you'd see a lot of places without having to be experienced at arranging all the logistics.
Start with cities/areas you have always wanted to and build a trip from that.
For example:
LA - New York - Reykjavik - London - Paris - Amsterdam - Lisbon - Marrakech - Rome - Budapest - Athens - Istanbul - Cairo - Dubai - Agra - Seoul - Singapore - Tokyo - Sydney
Only thing, this could be a lot or not enough, but there are still so many places missed, but in your list, you hit your top favorites.
You could also make a goal so that you hit all 7 continents in one trip.
Or you could visit a region based on interest like SE Asia, Mediterranean area, South America, and take multiple trips.
It’s really up to you. Your budget is doable for all kinds of travel, just depends on how much you want to do and how much you want to see.
50K - no problem as long as you don't spend too much time in places like Japan and Switzerland or do expensive sightseeing trips wherever you go.
We are 4 and a half months into a year-long long RTW trip. I estimate our RTW air tickets will be about $5k and that for my wife and I we are averaging about $100 a day for food, accommodation, sightseeing and internal travel.
So I'd say you could easily manage a RTW trip on $50K. Good luck and enjoy - it's a fantastic experience.
We are 4 and a half months into a year-long long RTW trip. I estimate our RTW air tickets will be about $5k and that for my wife and I we are averaging about $100 a day for food, accommodation, sightseeing and internal travel.
That's fantastic! Mind sharing your general itinerary? We're on a long-term RTW trip as well, although we've cheated 3x now by flying to USA to visit relatives, my Dad is getting up there in years. Averaging about $45k/year here.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Originally Posted by PatMil
50K - no problem as long as you don't spend too much time in places like Japan and Switzerland or do expensive sightseeing trips wherever you go.
We are 4 and a half months into a year-long long RTW trip. I estimate our RTW air tickets will be about $5k and that for my wife and I we are averaging about $100 a day for food, accommodation, sightseeing and internal travel.
So I'd say you could easily manage a RTW trip on $50K. Good luck and enjoy - it's a fantastic experience.
But... $45k @ $100/day makes a short duration.
Not sure how long the op wants to be out and about.
Minus transportation, we (2) <$50/day average. So we stay away as long as possible. (Lodging and at least one meal free to $20/ night (private guest homes such as Servas.org). Seldom eat out... hosts prefer to cook.
We were able to do NZ, Au, UK, Romania, Spain, Philippines, Malaysia for ~free (1-3 months each)
Trade / vocational boarding schools needing teaching, remodel / IT, business planning, mechanic, fab or farming assistance. Free room and board (and available car / Ute,) for ~ 20 hrs / week assistance
That's fantastic! Mind sharing your general itinerary? We're on a long-term RTW trip as well, although we've cheated 3x now by flying to USA to visit relatives, my Dad is getting up there in years. Averaging about $45k/year here.
We started in Kuala Lumpur Malaysia, then spent about 4 weeks each in China and Japan, back to KL for a week then about 2 weeks in Myanmar, 3 weeks in Vietnam and about 2 weeks each in Cambodia and Laos.
Back through KL to the US where we've spent about a month visiting children and enjoying the California coast.
Tomorrow we leave for a week in Mexico and then to Cuba for 3 weeks. From there to Costa Rica and Panama.
No real plans from then to 18 April when we're doing the Classic Inca Trail.
From then to mid July we'll wind our way through South America. I'll then go to London (time with my grandsons) and for my wife to Dubai (to see her grand daughter and new grandson) for about a month.
We'll then spend some time in Spain and Portugal (and possibly some Eastern Europe) for a couple of months before heading back to South Africa to regroup.
Maybe we can meet up some time somewhere and share stories? Enjoy the journey.
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