Ever wondered how some people seemingly manage to enjoy a life of perpetual luxury travel? Do you look at those Facebook posts from your friends that show they’re living the life of Riley and wonder ‘how?’, or get Instagram envy whenever you see yet another beautiful photograph from some far-flung destination? I talked about some ways to make luxury travel more tangible in my post 10 ways to make luxury travel more affordable, but am going to take this opportunity to delve a little deeper into the realms of financial planning and, more specifically, investing in a stocks and shares ISA such as that offered by F&C Investments so that you too can be lapping up the good life in the destination of your dreams.
Anyone who enjoys travelling in style would be wise to plan for their retirement. There are a number of potential perks that go far beyond just having a free bus pass. Firstly, you have much greater flexibility when it comes to taking vacations. You’re not limited to just four weeks of the year and you can take your holidays at any time, thus avoiding peak periods when destinations are overrun by tourists and costs are at their highest.
What is an ISA?
OK, so you want to generate a little Facebook rivalry of your own with that once-in-a-lifetime cruise? An ISA (Individual Savings Account) provides you with an opportunity to save money tax efficiently so you can spend more time sunning yourself on the beach and less time worrying about being taxed on your savings. And if you’re taxed less on your savings, you’ll have more to spend when you do choose to take a holiday. Save wisely early on and you could be packing your bags for that luxury getaway sooner than you think.
And keep an eye on prices before you book – it’s amazing what bargains are out there, from mis-priced flights to large discounts on five star hotels that are keen to increase occupancy in the off-season. Just as with investing, planning ahead usually brings its rewards. The travel industry loves to lure people in with early bird offers so make sure you sign up to relevant mailing lists so you are among the first to receive special offer alerts.
How can I translate all this into a future life of luxury travel?
The more you plan ahead for the future by investing ahead of your retirement, then the greater potential return you may expect to see. Whether you’re planning a paradise island holiday in the Maldives or Mauritius or a luxury city break to Paris or New York, you’ll need to make sure your financial affairs allow for it. Whatever your aspirations, you’ll want to make sure they’re attainable with a tidy nest egg.
At the same, be careful how you splurge. There’s little point in paying over the odds for business class flights on a short hop within Europe when you’re airborne for perhaps only a couple of hours. I would sooner opt for a room upgrade for our entire stay, and quite possibly still have saved enough to treat ourselves to a really special meal out on the last night of our trip.
Why is it important to act now?
The sooner you act and start saving, the sooner you can start to enjoy the benefits of long term investing. Also, since there is a limit on how much money you can put into an ISA each tax year (£20,000 this tax year, 6th April 2018/5th April 2019), the sooner you start then the greater the opportunity there is to take advantage of each year’s allowance. So, think ahead now… and soon you can be picking the holiday – or holidays – of your dreams!
Disclosure: This post is sponsored by F&C Investments. F&C Investments offers a range of savings plans and 10 investment trusts that are designed to help you reach your investment goals.
Source: Read Full Article