How to go for a foreign vacation every 3 years?
Walk-through: Get the SIP amount for recurring goals like a dream vacation every few years
Walk-through: Get the SIP amount for recurring goals like a dream vacation every few years
We have already covered
This post will deal with a recurring goal like going for a foreign vacation every three years throughout your life (for the next 30 years).
Assume that the goal amount is 4 lakhs (as per todayâs cost) every 3 years for the next 30 years starting 2 years from now. So this is a plan for 10 vacations using the same framework followed for multiple goals with constant inflation of say 5%. We should keep in mind that inflation for vacations can be unpredictable due to how fuel prices, demand at various tourism locations and other factors play out.
Assume 2 lakhs is available today which is allocated to the first yearâs vacation.
These are essentially 10 single payment goals:
Using the single goal model the following SIP amounts are determined and the totals are added up as shown:
The 40 lakhs initial cost of the 10 trips are expected to be around 93 lakhs over the next 30 years. The initial lump sum amount is allocated to the first trip since that will happen first. A single set of SIPs are created: equity 5154 and debt 22107 along with one lump sum investment in debt of 2 lakhs as per asset allocation. Refer to these posts for investing in equity and debt funds.
These calculations are explained in this Google Sheets workbook.
Join the Arthgyaan WhatsApp community: You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.The following needs to be done in this order:
See this detailed post for the process for reviewing.
At all times ensure that you have the following in place
Please see below:
This article shows how a single-income middle aged couple with two small children reach their retirement and childrenâs goals.
This article shows how a double-income couple with a 2-year old reach their FIRE dream at the age of 50.
This article shows how a double-income couple with a newborn child can invest for their future goals of FIRE and real-estate investment.
This article shows how a young just-married couple can invest for future goals using the Arthgyaan goal-based investing tool.
Did you welcome a bundle of joy in your 40s? This article will discuss ways of planning the childâs (and yourâs financial future)
This article shows how a very typical salaried couple with one child can invest for future goals using the Arthgyaan goal-based investing tool.
This post explains the situations when you can sell a mutual fund.
Published: 25 June 2021
5 MIN READ
You pay a heavy price by waiting to start investments: this post shows the effects of every year of delay
Published: 27 June 2021
2 MIN READ
This article shows a handy ready reckoner for home loan EMI amounts for all tenures and interest rates along with the amount of principal and interest to be paid.
Published: 29 September 2023
1 MIN READ
A quick retirement calculation for a reader query who has a good amount of corpus already saved for retirement.
Published: 27 September 2023
7 MIN READ
1. Email me with any questions.
2. Use our goal-based investing template to prepare a financial plan for yourselfDon't forget to share this article on WhatsApp or Twitter or post this to Facebook.
Discuss this post with us via Facebook or get regular bite-sized updates on Twitter.
More posts...Disclaimer: Content on this site is for educational purpose only and is not financial advice. Nothing on this site should be construed as an offer or recommendation to buy/sell any financial product or service. Please consult a registered investment advisor before making any investments.
This post titled How to go for a foreign vacation every 3 years? first appeared on 26 Jun 2021 at https://arthgyaan.com