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CYAI: Disney Cruise for the family!

Home Personal Finance and Budgeting CYAI: Disney Cruise for the family!

  • Avatar Panscan 
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    You wrote they have less savings than you like to see at this stage of a doctors career. They have like 700k between taxable and other stuff along with the pension, at 36 that is crushing it. I know this site is an outlier but even for this site that is doing pretty dang good IMO. Not sure how much more one could expect to have unless we’re going to live in caves

    #228466 Reply
    Avatar Infinity 
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    @infinity not sure where you are getting your $8k/person figure. We are going on a Disney Alaska Cruise next month and our reservation for a family of 5 in a verandah room was just a hair over $16k total. Granted this doesn’t include shore excursions, but those have only totaled just over $3k for a whale watch tour, a nature hike with bear viewing, and a boat ride up some fjord with another nature hike. So nowhere near your suggested $35-40k budgeted amount.

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    Disney is the best cruise based on our experiences as well.  In our experiences, Disney is more expensive than others.  My wife makes all the plans, I choose destination and pay the bills. That is our rules for vacations. In May, I paid $4500/person for Princess cruise including air fares.  Our kids are older and don’t care much for animations. My kid’s mom called just before the trip and said she paid for $8800/person for Disney departing around the same time.  So, without verifying, $8K was in my mind for Disney’s Alaska cruise.  Have a great time, MaxPower!

    #228468 Reply
    Liked by StarTrekDoc
    fatlittlepig fatlittlepig 
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    From the figures being thrown around here, why not go on a regular non-price gouging cruise and go to Disney world also.

    #228478 Reply
    Liked by Lordosis
    Avatar jm129 
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    Hell yaah!

     

    memories, experiences (especially with family and friends) are more precious than possessions….

    #228568 Reply
    Liked by SPlum
    Avatar HumbleInvestor 
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    Status: Physician, Small Business Owner
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    Joined: 12/28/2016

    Disney is the best cruise based on our experiences as well.  In our experiences, Disney is more expensive than others.  My wife makes all the plans, I choose destination and pay the bills. That is our rules for vacations. In May, I paid $4500/person for Princess cruise including air fares.  Our kids are older and don’t care much for animations. My kid’s mom called just before the trip and said she paid for $8800/person for Disney departing around the same time.  So, without verifying, $8K was in my mind for Disney’s Alaska cruise.  Have a great time, MaxPower!

    Click to expand…

    I am curious where did you go and what kind of a room is it and for how long? Personal experience for a balcony on princess 7 day trip to Alaska has been lot lower than that with out airfare.

    #228571 Reply
    Avatar StarTrekDoc 
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    @FLP – Disney’s delivery of product regardless of situation is above industry standards — starts with their amusement parks, but also carries over to resorts and their cruises.  eg standard embarkation and disembarkation practices are tedious in most cruise lines —  disney?  With 50% of the boat usually kids?  walk on.   Walk off.  No waiting for group x to be called.   Amazing.    The experience is simply different with Disney — hence the premium that it carries.   It’s not high posh level like Viking or Silver Seas; but it definitely separates itself from Princess/Holland America/Celebrity (which all have exceptional Kids programs themselves)– one can’t compare them to Disney.

    Just like going to Orlando and visiting Seaworld/Universal Studios; unless you visit Disney, you’re not doing Disney.   Same of cruises.   Destination Alaska is nice and the view is the same, but the Disney experience does make a difference if you’re into the house of mouse stuff.

    #228575 Reply
    jfoxcpacfp jfoxcpacfp 
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    Joined: 01/09/2016

    You wrote they have less savings than you like to see at this stage of a doctors career. They have like 700k between taxable and other stuff along with the pension, at 36 that is crushing it. I know this site is an outlier but even for this site that is doing pretty dang good IMO. Not sure how much more one could expect to have unless we’re going to live in caves

    Click to expand…

    You know what – I agree with you. Looking back, I’m not sure why I made that comment, but I think I must have been more focused on years until retirement than age of the physician when I was writing that bit.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #228638 Reply
    q-school q-school 
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    Status: Physician
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    You wrote they have less savings than you like to see at this stage of a doctors career. They have like 700k between taxable and other stuff along with the pension, at 36 that is crushing it. I know this site is an outlier but even for this site that is doing pretty dang good IMO. Not sure how much more one could expect to have unless we’re going to live in caves

    Click to expand…

    You know what – I agree with you. Looking back, I’m not sure why I made that comment, but I think I must have been more focused on years until retirement than age of the physician when I was writing that bit.

    Click to expand…

    isn’t years to retirement more important than chronological age?   i get that there are some limitations as to how much you can accumulate in a smaller time frame, but if the retirement age is a personal preference rather than one dictated by circumstance, than that probably should be the marker.

    agree that pensions are an enormous game changer.  as the years go by, the more attractive those pensions sound.

     

    #228642 Reply
    Liked by Tim
    Avatar EntrepreneurMD 
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    CYAI – I think they can do it but I also think this kind of spending habit can affect their future lifestyle. Keep in mind if OP and family enjoy the trip very much it will be very hard in the future to go on more budget trips, so I’m assuming it’s not likely to be a one time deal. They want to spend over 13% of their cash reserves on one trip, I suspect it will cost more like 15-20%. Hopefully they factored in expensive cruise ship excursions, tipping, internet, alcohol/soft drinks, spa, specialty restaurants, etc. They may be able to get away with the original cruise estimate if they book early.

    My big concern is that OP and spouse both plan on a very early retirement, possibly not even lasting another 10 years for OP. But even if they survive another 10 or 15 years (spouse) there are concerns.

    Either the cruise they are taking is extremely short, or it likely will cost more than they are estimating, airfare as well. Assuming with school age children they will go in high cruise season – summer or spring break – especially to Alaska. No state income tax suggests they live in a southern state (long flight distance) – suspect airfare will likely be $3500-4K airfare for 5. Hidden expenses for this trip include extra charges for first checked bags, ground transportation, a hotel stay before and/or after the cruise to coordinate the cruise with flights, cruise/flight cancellation insurance etc..

    They are currently spending $140K/year plus taxes or about $200K. I doubt in 10 years they can retire on $100K. Doesn’t see practical with 3 teenage children. That’s a 50% spending hit despite inflation, and their kids will be in peak teen spending years (cell phones, cars, sports, concerts, food, tutoring/college prep courses, etc..). I suspect their spending at the time she retires will be higher than the current $200K, not lower. They only have another 10-15 years to build their nest egg, but expenses in 30 years are likely to be double today ($100K will be only $50K buying power), and in 60 years when OP is in her 90’s it will be quadruple ($100K will only be $25K buying power) today’s expenses thanks to inflation. Doesn’t seem they factored in potentially 5+ decades of inflation. That will be the danger with such an early retirement.

    The issue is not so much the one trip. The trip speaks to the lifestyle they desire. I think this is more of an early retirement planning story. OP and hubby should plan on working longer. Perhaps when she gets her next 10 years in with retirement benefits, she can transition to a higher paying private sector job so she doesn’t have to worry any longer about deployment. She does want to spend $90K on their children’s wedding contributions. What about one day spending on grandchildren, kids first houses, possibly supporting aging parents and in-laws, unexpected healthcare bills, etc.? We all naturally have unforeseen expenses. The earlier they retire, the closer their nest egg will need to be close to $4-5M to support the longer retirement. The later they retire, the smaller their nest egg needs to be to make the 4% withdrawal rate work.

    #228757 Reply
    jfoxcpacfp jfoxcpacfp 
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    medical school scholarship sponsor
    I doubt in 10 years they can retire on $100K. Doesn’t see practical with 3 teenage children. That’s a 50% spending hit despite inflation, and their kids will be in peak teen spending years (cell phones, cars, sports, concerts, food, tutoring/college prep courses, etc..).

    Click to expand…

    Actually, that is a very good point about early retirement and probably something I need to add to my arsenal in future talks with early retirers. (Of course, I happen to be in the camp that kids are old enough to earn their own money if they are old enough to use smartphones, drive cars, and go out on dates.)

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #228758 Reply
    q-school q-school 
    Participant
    Status: Physician
    Posts: 2487
    Joined: 05/07/2017

    CYAI – I think they can do it but I also think this kind of spending habit can affect their future lifestyle. Keep in mind if OP and family enjoy the trip very much it will be very hard in the future to go on more budget trips, so I’m assuming it’s not likely to be a one time deal. They want to spend over 13% of their cash reserves on one trip, I suspect it will cost more like 15-20%. Hopefully they factored in expensive cruise ship excursions, tipping, internet, alcohol/soft drinks, spa, specialty restaurants, etc. They may be able to get away with the original cruise estimate if they book early.

    My big concern is that OP and spouse both plan on a very early retirement, possibly not even lasting another 10 years for OP. But even if they survive another 10 or 15 years (spouse) there are concerns.

    Either the cruise they are taking is extremely short, or it likely will cost more than they are estimating, airfare as well. Assuming with school age children they will go in high cruise season – summer or spring break – especially to Alaska. No state income tax suggests they live in a southern state (long flight distance) – suspect airfare will likely be $3500-4K airfare for 5. Hidden expenses for this trip include extra charges for first checked bags, ground transportation, a hotel stay before and/or after the cruise to coordinate the cruise with flights, cruise/flight cancellation insurance etc..

    They are currently spending $140K/year plus taxes or about $200K. I doubt in 10 years they can retire on $100K. Doesn’t see practical with 3 teenage children. That’s a 50% spending hit despite inflation, and their kids will be in peak teen spending years (cell phones, cars, sports, concerts, food, tutoring/college prep courses, etc..). I suspect their spending at the time she retires will be higher than the current $200K, not lower. They only have another 10-15 years to build their nest egg, but expenses in 30 years are likely to be double today ($100K will be only $50K buying power), and in 60 years when OP is in her 90’s it will be quadruple ($100K will only be $25K buying power) today’s expenses thanks to inflation. Doesn’t seem they factored in potentially 5+ decades of inflation. That will be the danger with such an early retirement.

    The issue is not so much the one trip. The trip speaks to the lifestyle they desire. I think this is more of an early retirement planning story. OP and hubby should plan on working longer. Perhaps when she gets her next 10 years in with retirement benefits, she can transition to a higher paying private sector job so she doesn’t have to worry any longer about deployment. She does want to spend $90K on their children’s wedding contributions. What about one day spending on grandchildren, kids first houses, possibly supporting aging parents and in-laws, unexpected healthcare bills, etc.? We all naturally have unforeseen expenses. The earlier they retire, the closer their nest egg will need to be close to $4-5M to support the longer retirement. The later they retire, the smaller their nest egg needs to be to make the 4% withdrawal rate work.

    Click to expand…

    washington has no state income tax

    alaska also has no state income tax, but probably not in alaska if going on alaskan cruise?

    sometimes the military pays for kids education, or they may be willing to allow the kids to pay fro their own education.  spending may be higher in retirement-but not necessarily.  especially if a lot of current spend is kid related.  i think they need to finish out whatever it takes to get the pension.  but after that, having a pension, favorably treated for tax purposes in many states,  they can adjust their lifestyle to fit the pension and never run out.

    who knows?  that’s the beauty of life.  everyone finds their own path.

     

     

    #228764 Reply
    Liked by Anne
    Avatar Anne 
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    Joined: 11/07/2017

    Many opportunities in the military to pay no state income tax. I lived in CA for 5 glorious years and never paid state income tax (my state of residence did have state income tax but not for AD military residing out of state). If you have been in the military for 10+ years and haven’t figured out a way to establish residency in a non-income tax state you’re doing it wrong!

    #228777 Reply
    Avatar EntrepreneurMD 
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    Status: Physician
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    Joined: 06/10/2019
    I doubt in 10 years they can retire on $100K. Doesn’t see practical with 3 teenage children. That’s a 50% spending hit despite inflation, and their kids will be in peak teen spending years (cell phones, cars, sports, concerts, food, tutoring/college prep courses, etc..). 

    Click to expand…

    Actually, that is a very good point about early retirement and probably something I need to add to my arsenal in future talks with early retirers. (Of course, I happen to be in the camp that kids are old enough to earn their own money if they are old enough to use smartphones, drive cars, and go out on dates.)

    Click to expand…

    Glad to provide you with future practical ammunition for stubborn clients (like me).

    Regarding the kids earning their own money…

    My 16 year old daughter Drives a Benz SUV with inflated teenager insurance rate, has the $1K iPhone + MacBook +I Pad, routinely goes over on data charges, goes to private HS school ($10K/year), has an hourly private tutor ($5K/year), is currently enrolled in a summer SAT prep course for $6K, has a private collage advisor ($2K/year), owns a horse plus boarding/vet/show expenses ($11K/year), shops brand names daily/only, fast food is beneath her, room is the messiest for the house maid, demands only the best in travel (Europe, San Francisco/Beverly Hills, Dubai, Far East), music/movie/subscriptions, almost daily Starbucks of course. And I am exactly 10 years older than OP, her desired retirement age, with $800K children’s college/graduate expenses around the corner for 2, not 3, children.

    Okay, so I enabled a little. Now you know why I consider making my kids take out some student loans in college.

    Daughter’s not allowed to date until 30, or maybe 35?

    …how much can she possibly earn to offset all the costs?

    Those dreamers retiring in their 30’s or 40’s have no idea of the lack of control over their expenses that’s coming like a runaway train in the not too distant future. Let me guess, they think they will say no to their teens whose friends come from 8 and 9 figure NW families. Good luck with that!

    #228778 Reply
    Liked by childay
    Lordosis Lordosis 
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    Status: Physician
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    Joined: 02/11/2019
    Okay, so I enabled a little.

    Click to expand…

    Sounds like it Haha

    Let me guess, they think they will say no to their teens whose friends come from 8 and 9 figure NW families.

    Click to expand…

    I do not have any friends with a net worth of 8 figures and certainly not 9.  I doubt my kids will have any friends with families of that net worth either.

    I live in a middle class neighborhood and my kids will go to public school.  But saying no is an important skill.  And learning what no means is an even more important skill.

    You can live your life however you want but I for one am going to do everything in my power to prevent my kids from demanding the high life.

     

    Hopefully the poster sees this as a once or twice in a lifetime trip.  Not a new yearly occurrence.

    “Never let your sense of morals prevent you from doing what is right.”

    #228783 Reply
    fatlittlepig fatlittlepig 
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    Status: Physician
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    Joined: 01/26/2017
    My 16 year old daughter Drives a Benz SUV with inflated teenager insurance rate, has the $1K iPhone + MacBook +I Pad, routinely goes over on data charges, goes to private HS school ($10K/year), has an hourly private tutor ($5K/year), is currently enrolled in a summer SAT prep course for $6K, has a private collage advisor ($2K/year), owns a horse plus boarding/vet/show expenses ($11K/year), shops brand names daily/only, fast food is beneath her, room is the messiest for the house maid, demands only the best in travel (Europe, San Francisco/Beverly Hills, Dubai, Far East), music/movie/subscriptions, almost daily Starbucks of course.
    Click to expand…

    I’m not going to judge anyone’s parenting but…

    #228784 Reply

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