With the 'chaos' of the stock markets this week, has that caused a reconsideration of travel plans based solely on the economics, (unrelated to one's dislike of certain politicians and policies)?
Or is it just a grit your teeth and shave spending in other areas?
Look at it this way, if you haven't sold any stock, you haven't lost any money.
If you can stick tight, you will be fine. It's those that panic and sell who do badly.
Travel costs should not be affected by tariffs. Prices of goods will probably rise in the next few weeks because we import so much into the US.
The value of the dollar has been affected by the tariffs. If the value of the dollar continues to drop, the cost of travel to Europe will increase, it fell 1.54% today.
It is about shaving spending in other areas.
Make your coffee or tea instead of going to the l cafe; break out the cook book, get your spices in order and make your own meals until this passes as it will like before.
Walk or ride the bike instead of driving.
I just bought a ticket to Amsterdam today for $671 connecting through KEF.
The dollar against the Euro is back to where it was before the post election rise. So unless someone planned their travel around a 2 month anomaly, nothing has changed.
The dollar against the forint is still better than the average of the last few years.
And FrankII some of us live off investments and must sell them. So it hurts when the market is down. But my money nerd smelled this and we got safe before it hit.
I am more worried about cancelled flights due to decreased demand. Airlines are reeling. Again.
I have a 20 year old Lexus convertible , which runs perfectly. Hopefully it can make it to 24 years.
Now I'm very happy that our hotel in Varenna wanted payment (refundable) in January. And that our train tickets are all paid for.
Geez!
Most of my investments are earmarked for retirement, which I will take in 15+ years (assuming I and/or this country last that long), so market volatility is not a big concern for me.
I am, on the other hand, much more anxious about my immediate finances, and I disagree that "shaving spending" is going to make a difference. My apartment's monthly maintenance fee increased 29% in 2025. I work in a hospital, and if the current government administration's proposed Medicaid cuts go into effect, I might lose my job as a nonclinical administrator. No matter what, I will need to make significant adjustments to my spending, and leisure travel is going to take the hit. I am so glad I visited Europe in early January; it might be my last trip there for a while.
If you planned, booked and payed for your April or May trip this year between August and midOctober lsst year .... which would be rational planning ... the dollar is pretty much the same today as then.
And FrankII some of us live off investments and must sell them. So it hurts when the market is down. But my money nerd smelled this and we got safe before it hit
I live off investments as well. But I moved them into securities that pay dividends, interest and capital gains. I live off that so I don't have to touch principle....for now.
I don't expect many gains this year so I may have to sell the worst performing of my investments. But I also plan to bank some of the gains from last year to help with this year.
I live off that so I don't have to touch principle....for now.
Not to disagree with FrankII but to add a wrinkle - unfortunately, those of us who are now required to take Required Minimum Distributions [RMDs] from our pre-tax retirement accounts don't have a choice - we must withdraw a specified amount from our accounts this year or face a significant penalty. The distribution is calculated against our account balance as of 12/31 of last year - when the market was way up. So to take a distribution now would require taking a much higher percentage of the account balance. Hopefully things will at least partially recover before the end of the year.
markcw, same boat as you. My short term work around after the crash 4 years ago has been to live here for about half the cost in the US. Looks like I will be here another 4 years LOL.
When the market was depressed a few years ago, I THINK one could delay the RMD. I need to research that.
For this year, my accountant said we had til April 2026 to make the withdrawal, but would still have to make a 2026 withdrawal. Obviously, I hope the market improves by then. Good luck to us all!
@NYC Librarian - I don't have the exact same situation, but similar. Worried about potential job loss and looking into where I can shave spending in areas, just in case. Also glad I took a recent trip, which was February this year.
Not sure about travel plans yet. If I take an international trip or not depends more on if I find a really good deal on an airline ticket and inexpensive accommodations. But, it will most likely be next year at the earliest. For this year, I'm thinking I will stay relatively close to home, perhaps some camping.
If you are not RMD dependent, sit tight. The market will come back quickly as countries negotiate trade deals with the US and they will. If you are RMD dependent, delay as long as possible and withdraw cash first if you need funds. It is a long time until December 31. Cost of travel should actually be improved as the travel industry looks for ways to entice travelers with deals. Airfares are already showing price reductions.
This will also thin out some crowds this summer. Let's see if those who cried over tourism will be happy with a smaller number of tourists they have been wishing for the past year.
I'm in a new situation of being newly retired. Up until now when the market dropped I'd see buying opportunities and pile extra money into my investments. Now I need to change my approach to be less aggressive and move toward a more balanced portfolio, but that's a situation of my age and retirement, not the current chaos. My brain knows I'm OK and will weather this storm, but emotions, worry and doubt do make an appearance and make me wonder if I did everything right to get me through the next 30 years. But to answer the question, in the next year I'll carry on as per plan and try to make it to Europe twice this year, and plan for 2026 as usual but with a cautious eye.
I am not even thinking about it because I am too busy planning my 10th cruise.
But come to think about it, maybe by the time I am ready to book, I will get some better prices. Hadn't considered that.
Haven't you heard that this is actually the time to buy stock, not that I am buying. And I am not even looking.
As Churchill said “You can trust Americans to do the right thing. But only when they have exhausted all the other options”
For us retired one way to control or reduce cost is to extend the trip. The single most expensive component is crossing the Atlantic. Change your style a bit, settle into one or two locations, rent an apartment for a month and live in the economy. Try it once and see if its for you. If you chose a location wisely your "additional" daily costs maybe close to zero because you would have had the same daily costs in the US if you stayed home. So the difference is the accommodation and the airfare and that can prorate out to under $100 a day in many locations.
Not for travel, but hoping I don't have to cancel the cleaning lady, lol! I know-it's first world problems. I'm thinking back to COVID when everything shut down and people that needed money the most were hurt the worst. So, I'll keep the cleaning lady, continue to eat out at family run establishments, and spend money to help my local community.
I’ve been retired seven years & in my late 60’s.
No travel plan changes for now. I have already paid for most of my big ticket items for the next trip to Italy - the flight, B&B’s, the more expensive train tickets. It’s another trip where the more remote locations are the enjoyment, not expensive day activities. Hopefully there’s plenty of funds for gelato! ; )
We are leaving for a trip to Patagonia shortly and have another trip planned for September. If I could cancel that September trip I would but we already have substantial sums committed to that trip that we would not be able to recoup. In addition, we are getting older and don’t know how many more trips we have left in us due to our age and stamina so this may be one of our last trips anyway. In the meantime, we are tightening our belts and not spending a nickel beyond the necessities. I am sure I am not alone in my thinking.
I find it to be quite liberating to be going broke, Ah, heading to Switzerland next! I understand there are bargains to be had! I wonder if they take post dated checks?
REALITY CHECK
In the last 5 years the US stock market on average has increased 11.5% per year. During the "other administration" in 2022 it declined 23%. YTD the market is down 2.5%. Everyone take a deep breath and look at your map. Where are you traveling to next?
It declined n 2022 due to a few main reasons...
the Fed, worried about inflation, raised interest rates 11 times in the early part of the year. Any economics student can tell you that when interest rates rise, the stock market goes down. (The Fed controls interest rates, not the President.)
Another was the war in Ukraine. Wars bring short term uncertainty.
Supply chain issues, first started during Covid and made worse due to the war, were continuing and causing economic problems.
By the end of 2024, the market had recovered and reached all time highs.
It's rare that a President can affect the stock market long term unless they make major changes to economic policy. Like across the board tariffs.
Since it's high in February, the stock market is down about 14%. A stock market is considered to crash, and start to cause real concerns, when it drops 20%. We'll see what happens in the next few days.
You are right Frank II. The Fed has a bigger impact than anyone and the market always reacts to it no matter who is in office.
Not saying the tariff negotiations are not an effect on the market, but tariffs will either disappear or become the norm. My guess is they will soon disappear because the reality is that tariffs work poorly both ways. I could care less about political parties. It is simple economics. If you charge me 25% on imports, I'll charge you 25% for the same imports. Tariffs are as stupid as sales taxes, VAT or GST, but a revenue windfall for governments to spend as they like.
Kind of like the Venice Visitor Access Fee. Nothing more than a revenue windfall. Does nothing for the people.
In the end it is always the consumer who bears the brunt. However, people love those government services, "free" healthcare in some countries, free social programs, etc.
We are not living in the industrial revolution age any longer and there are very few developing democracies blooming. This a blip on the market radar. Covid had a more real sustaining impact on the economy. I disagree about 2022 though. Covid was gone. There were some bad policies that affected the marketplace and money supply which caused inflation and market jitters.
Stay the course is still the advice by financial experts. Market buyers and investors with loads of cash and market profits will be back in soon.
I'm curious of people's age when they answer this question. My thought is the older you are the more concerned you'll be of a downturn because you have less time to wait for an adjustment. During Covid and as I was seriously thinking of retirement, my investments dropped 11% very quickly and stayed there for a year. It was concerning because I really wanted to retire but I began to have doubts. However since then they've gained 45% and I'm riding high again. Like death and taxes, you can count on market volatility and panic. If you're truly concerned about your ability to travel, talk to an expert. As an armchair quarterback all I can recommend is patience and don't panic.
I'm curious of people's age when they answer this question. My thought is the older you are the more concerned you'll be of a downturn because you have less time to wait for an adjustment. During Covid and as I was seriously thinking of retirement, my investments dropped 11% very quickly and stayed there for a year. It was concerning because I really
Retired 10 years ago. We are not panicking as we took steps this February, as we did after the 2008 downturn, to ensure enough liquidity for 3 years in case of a scenario like this current mess. It took some doing to structure but between 2008 and retirement in 2015 we worked with our broker and now sell at opportune moments to maintain that 2.5-3 year buffer so we don’t have to change our plans too much.
I'm not worried. Navarro was on the tele today and put a positive spin on things. He always tell the truth.
About time tariffs were imposed on those fat-cat seals, peddling their oily coats all over the place. And I'd love to see the look on the huckster penguins in their fancy dickie bows, once they find out 10% has been slapped on their designer tuxedos.
I think it’s a fair question as there are a number of economic forces that are impacting us as a result of this Administration’s economic “policy.” Depending on our age, income, employment status etc. there’s a lot to consider when planning travel. Here is what I’ve done and welcome other tips.
Luckily I booked travel in December for an October trip. A few of my accommodations are fully paid for. I’ve contacted a couple of others - those longer stays/ more expensive places to see if I can pay for the entire stay now. That will give me peace of mind if the dollar completely crashes and since I always book places with flexible cancellation policies I can always back out if it become financially untenable to travel internationally right now.
I don’t travel as frugally as I did in my 20s and 30s but we still try and do the following to keep travel costs manageable:
Book accommodations with a small fridge and microwave if at all possible so we can eat breakfast in the room and heat up leftovers.
Travel in shoulder season - we originally wanted to go to the Netherlands in September but booking in October saved over $1000 per person for flights. Similarly leaving on a Tuesday was much cheaper than flying out on a Saturday.
I don’t plan to completely pull back on travel and I think now more than ever we need to hold to RS Concept of travel as a political act. Welcome other thoughts for traveling in the era of economic and political instability.
