How to Retire and Travel the World
Do you want to travel the world in retirement? Here are some ways to do it.
Take a look at these steps and see if this is the right life for you
Have you ever wondered, “What if I could travel the globe in retirement?” This is a dream that almost everyone has had at some point. Quit your job, move out of the country, pack a backpack, and travel the world. What if that dream could become your retirement reality?
Let's take a look at how to spend retirement, not just relaxing at home but exploring new places through travel. These steps will help you to envision how this type of life change would look and how it matches your reality.
- Before you set out, take the time to be open with yourself about the things that you love about the road, the obligations you have to others, as well as your current health.
- It can be costly to travel. So make sure you look at your retirement savings. Are there ways you can stretch your budget, or make adjustments such as downsizing your home or selling your house?
- Volunteering, swapping homes, and working while you travel are all cheaper options.
Find out if you're really ready
Before you embark on a journey of adventure, there is a lot to do. This planning begins with an honest assessment about your readiness for such a lifestyle. There are no right or wrong answers. However, it is important to ask the following questions.
Are You Really Passionate about Traveling?
Or do you just Love to Take Vacations?
Although it may seem obvious, there is a huge difference between a week-long vacation or a life that revolves around travel. Are you a fan of packing, flying, shelter-finding, and all the inconveniences that come with traveling? Is a vacation of a week enough to satisfy you or not? If you can afford to travel for extended periods of time, are you prepared to “rough it?”
Are there any obligations that you have to fulfill at home?
It will be difficult for you to drive if you have elderly parents or disabled children.
What's your Mental and Physical Health like?
You don't have to be perfect to travel. However, you must be able to handle the stresses of traveling. Before you make long-term travel plans, consult your doctor if you have any chronic or serious health issues. You will need travel insurance in order to cover any medical emergencies outside of the United States. Medicare doesn't cover international health costs.
Take a look at your financial situation
Traveling around the world is not cheap. A one-week-long trip to another country can run you $5,000 for two. You should prepare for financial difficulties if you plan to stay abroad for a longer period of time. You will need a large nest egg to support your extensive travels. However, the amount you get depends on your expectations.
You will need to have a large bank account in order to be able to afford luxury hotels in Europe and North America. If you are willing to stay in modest accommodations–hostels, inexpensive motels, rented apartments, or campgrounds–you can travel quite inexpensively. You can save even more by visiting developing countries. In many cases, you can travel for a few dollars per person.
No matter if you are planning on several large trips per year or a more regular life on the road. Your itinerary should begin with a thorough review of all your retirement savings. This includes money in the bank and investments, as well as any income from rental or business properties.
You need to seriously review your retirement income plan if you don't have a retirement savings or investing plan that allows for frequent or full-time travel. Knowing what you have will allow you to budget for your daily expenses and travel costs. An experienced financial consultant will help you evaluate your investments and identify any potential problems.
You may be considering selling your home and most of your possessions to fund your travels. This is not an easy decision. Take at least a few months to research all details, talk to your family, and consult your financial advisor.
You can also rent your house out while you are traveling, which is an option if you plan to return home one day. If you do not have a permanent address, you will need one to receive mail while on the move.
It's not an easy decision to travel with your retirement money. Before you make the leap, take time to think through all options.
Take a look at budget-friendly retirement travel
Although flying first-class to luxury hotels is certainly a pleasure, it's not part of a retirement plan that is travel-based. Look for budget-friendly options. You can also cut costs by choosing low-cost destinations and staying in affordable lodgings.
Take a Repositioning Cruise
These discounted cruises are offered by cruise lines when they have to move ships from one port to the next, often during off-season. The ship will not return from the port of origin, but will stop at multiple ports along the way to reach the destination. This is different than typical cruises. Some people retire from cruise ships for a portion of their lives.
Volunteer Vacations and Community Activism
Volunteer vacations are a great way to help others and do good in the process. There are many options, from two years of Peace Corps service to a few days in an organic farm's fields, as well as everything in between. You'll generally pay a fixed price for your lodging and food during your volunteer stint. This is usually less than what the trip would cost. Volunteer vacations are available all around the globe.
Become a Digital Nomad So You can work wherever you are
Working while you travel can help to replenish your bank accounts. There are many options: You can teach English abroad, write a blog or book about your experiences, work as a virtual assistant, or do other online jobs. Use your Facebook groups to put the word out, use Twitter to announce it to people and join Reddit forums that talk about traveling as a retired person.
You can use your house to support your travels even if you don't plan on selling it. A house swap is where you and another homeowner move into the other's home for a specified period. If you are looking to spend a week or more in a single location, this is a great way of traveling abroad. International Vacation Home Exchange makes it easy to find a home for rent and provides safety measures for your security.
House-sitting can help you cover the cost of lodgings for someone who is traveling. You might be asked to care for pets and water plants in return for your free stay at the house. Check out TrustedHousesitters.com to get a feel for house-sitting jobs around the world.
The bottom line
Some retirees enjoy spending time at home with their loved ones and friends, while others want to live an adventurous lifestyle. If this is you, you might want to travel the world in retirement. Perhaps you will retire abroad, or in multiple countries.
Before you sell your possessions or buy a plane ticket, it's important to do an honest assessment about your financial situation, travel goals, and daily budget. Talk to your financial advisor before you make any major decisions. This will ensure that you are clear about the best ways to maximize your money. Bon voyage!
This is our disclosure: This summary is for informational purposes only. This summary is not intended to be a recommendation for or give advice for any company or individual.
Get the Live Well Retire Wealthy Newsletter