Pricing Your Bucket List By Lewis J. Walker, CFP(R)

In planning what your money and investments are to do for you, questions are posed. How much do you need to cover everyday living expenses (survival income)? How much should be kept in a “What if?” cash reserve? What do you want for fun, including dining out, trips, theater, hobbies, etc. Envision these questions as a pyramid based on Abraham Maslow’s “hierarchy of needs,” with survival cash flow at the base.

As we build your pyramid, after fun (freedom) money, comes gifts, including those to children, grandchildren, charities, etc. Those who tithe or otherwise support their spiritual home often take that out of survival or basic income. At the top of the pyramid is “dreams,” perhaps a second home, motor home, boat, exotic trips. Dreams often are listed as “bucket list” items.

Travel rates high on bucket lists, but often people underestimate the costs. While yours truly is not a travel agent, I spent the first part of my post-Air Force career with two airlines in sales and marketing prior to entering financial services. I view travel as a learning experience, expanding horizons, keeping one young and active. It’s useful to know what your dream trip might cost today, even if you have to start saving in a fund dedicated to a future trip. The world beckons!

One couple mentioned trips to Patagonia and Machu Picchu. A 15 day trip to Machu Picchu and the Galapagos Islands, including hotels, transportation from Atlanta and all flights within the itinerary, many meals, is priced at $8,193 for prime time departures, slightly less for other time slots. A 15 day “Patagonia Explorer” trip, the best of Chile, is $6,297. Prices are per person, double; single supplements apply. The quotes are from Odysseys Unlimited, specialists in high style small group travel, and are offered only as examples. An experienced travel agent can find what is right for you.

When a tour operator quotes “free air” or “air included,” you know it’s not free; the cost is buried in the price. Tour operators obtain group rates on contracts from various airlines. You may not get a direct routing or have control over your seats. Air is for economy coach and a middle seat on long flight is my idea of purgatory. Ask for a “land only” quote and then compare what it takes to purchase air yourself, use frequent flyer points, upgrade to premium economy or business class. Tour operators or cruise lines may offer upgrades, but a “land or cruise only” quote gives you a basis for comparison.

For any quote you may wish to add 20% or more to your budget for trip insurance, personal spending, arriving at the starting point a few days early, excursions, gifts, souvenirs, etc. Many trips offer pre- or post-tour extensions. If you do not want to travel with a group, many travel agents can arrange customized itineraries.

Adventure travel is big. The French company, Ponant, offers a 11 day cruise, “Emblematic Antarctica” out of Ushuaia, Argentina, including air from and back to Buenos Aires, for $12,350 per person (double). The quote is for a high style new ship that is more like a big yacht. Experienced travelers are beginning to eschew mega-ships with 5,000 or more of your closest friends. Go early and enjoy Buenos Aires and take an optional extension to Iguazu Falls, Argentina. I experienced this itinerary and it was the adventure of a lifetime! Breathtaking! Take a good camera.

Prices quoted for Ponant are for a deluxe stateroom with a private balcony. On any ship, lower costs apply to inside staterooms or lower deck cabins with a porthole or window. Again, travel agents can match a trip to your budget, time frames, and physical fitness level.

The point is to be realistic about the cost of bucket list dreams so you can save or allocate funds. If you are planning for an active retirement or “restylement,” money spent on travel or other items will not be there in the future to produce income. Part of the planning exercise is to determine what you can afford while minimizing the odds of running out of money. But life with fun is preferable to the other alternative! Plan now. Eliminate “maybe” and define what’s feasible.

God created an amazing world. Bon voyage!

Lewis Walker is a financial planning and investment strategist at Capital Insight Group; 770-441-2603. Securities and advisory services offered through The Strategic Financial Alliance, Inc. (SFA). Lewis Walker is a registered representative and investment adviser representative of SFA which is otherwise unaffiliated with Capital Insight Group.