Inherited mothers Profit Sharing / 401K, now what?

[BrianTheMute]

If riding the Snow White ride is worth $7500, then go for it. Have fun in Disney World, and good luck to you.

Honestly, having one last ride on a ride that is being torn up and forgotten about forever, a piece of Walt Disney World history, there is no price I can put on that. If I don't go, I'll regret it forever.

[disneysteve]

There isn't anything else I'd rather spend the money on.

Not to beat a dead horse, but look at it this way. If you don't spend the money, it grows.

Let's say the $7,000 earns an average annual return of 7%. I'm guessing you are under 30 so let's leave that money alone for 35 years. You will end up with over $87,000. So when you look at it that way, the $5,000 trip you are taking now will mean $87,000 less in retirement savings.

[disneysteve]

Honestly, having one last ride on a ride that is being torn up and forgotten about forever, a piece of Walt Disney World history, there is no price I can put on that. If I don't go, I'll regret it forever.

Again, being a huge fan, I totally understand the sentiment. But you could go for the weekend for under $1,000 and ride it just as well as with the $5,000 luxury trip.

[BrianTheMute]

Again, being a huge fan, I totally understand the sentiment. But you could go for the weekend for under $1,000 and ride it just as well as with the $5,000 luxury trip.

But if this is going to be our one big trip to Disney, I want it to be the best it can be.

[bjl584]

I would also like to know why you feel that you can't afford this trip on your own. You said that you are debt free. Therefore, you must have some understanding of how budgeting and saving works. Why can't you save up the money on your own?

Why do you need to spend $5000 to ride the snow white ride? You could go there on the cheap like Steve said for less than a grand and ride it just the same.

[disneysteve]

But if this is going to be our one big trip to Disney

Why? It sounds like you are a pretty big fan. We go every year and used to go twice a year (and will again once our daughter is out of the house). Part of the reason we are able to afford to go so often is because we don't break the bank when we do go. Would you rather have one $5,000 trip or 2-3 less costly visits? Personally, and this is just my opinion, I'd rather go more often.

[BrianTheMute]

Why? It sounds like you are a pretty big fan. We go every year and used to go twice a year (and will again once our daughter is out of the house). Part of the reason we are able to afford to go so often is because we don't break the bank when we do go. Would you rather have one $5,000 trip or 2-3 less costly visits? Personally, and this is just my opinion, I'd rather go more often.

I understand what you mean, but my fiance has never been on a vacation before, or even been out of state. I want to give her at least one stay at the Polynesian. I stayed there a couple of times when I was a child, and I want us to have the experience I had. If that means this will be our one big vacation, I think it's worth it. Then after this, I start adulthood. One last hoorah as a stupid teenager.

[disneysteve]

If that means this will be our one big vacation, I think it's worth it.

Just be careful. What happens if your fiance loves the place as much as you do? Are the two of you going to be happy not going back? I know many people who went for their "once in a lifetime trip" and ended up being annual visitors or bought DVC or even packed up and moved to Orlando once they got there and fell in love with it.

And if that's what happens, then what? You will have set the bar really high for what a Disney vacation should look like. Will you and she be happy staying at the Days Inn offsite next time around or will you spend that whole trip comparing it to that first time at the Poly?

Consider downsizing this trip and start setting money aside for that big splurge trip - your honeymoon perhaps, or an anniversary in a few years.

[jteezie]

Since you're a teenager, it sounds like you don't have debt because you've never had money or credit.

I'm usually quite suspicious when people claim "I have perfect credit" because it implies that they know nothing about credit and how FICO scores are calculated.

My concern now isn't so much that you want to waste $7000 of your MOMs hard earned $14000, nor that you are throwing away a 100k head start on you and your fiance's (potential) early retirement, but that you are financially doomed to continue to make really really bad financial decisions.

Consider this a test of your financial will power and discipline. If you save it, you will have a great financial head start. If you spend it, you will likely continue this behavior and find yourself 50k in debt in 5 years.

There are so many things that people "must have". Ipads (oh it's just another $600 of your inheritence), iphones (just another $400), xbox (just another $400), better model car (.....)... limited edition stuff... blah blah blah

Good luck.

[BrianTheMute]

I'm 25. I don't drive, I'm not into fancy iphones or ipads. What else am I possibly going to spend this money on?

[jteezie]

Look at it this way. Yes saving money for savings sake is stupid. You should spend it in some way. Here are the main choices being discussed.

1. Buy an extravagant vacation today. It will be really expensive.
2. Buy a better future (early retirement or comfortable retirement). The longer you save the more money you will have.

Everyone here has a lot of financial experience. They've made this choice countless times. Sometimes for better, sometimes for worst. But from our mistakes, we strongly advise you choose #2.

I'm 27, never taken such an expensive vacation, and fortunately, did not inherit any money. I don't make a ton of money, but I started saving when I was 18. It has paid off for me because now I don't need to save anything else for retirement, meaning I have a lot more money now because when I was young, I chose to buy a better future. Literally, saving 5k a year from 18-25 means I have an extra 5k to spend every year for the REST of my life. That's an extravagant Disneyland vacation every year. (note, I actually saved way more than 5k, but 5k from age 18-25 is good enough to have $1M by retirement with optimistic projections).

Basically, a little sacrifice now completely outweighs spending now so that's why everyone is up in arms with your situation.

[BrianTheMute]

But when I'm retired, if I live that long, I probably won't enjoy an extravagant Disney vacation nearly as much.

[disneysteve]

. What else am I possibly going to spend this money on?

Look at it this way. Yes saving money for savings sake is stupid. You should spend it in some way. Here are the main choices being discussed.

1. Buy an extravagant vacation today. It will be really expensive.
2. Buy a better future (early retirement or comfortable retirement). The longer you save the more money you will have.

Let me add a third choice. What else could you spend the money on? You have a fiancé so that implies there is a wedding in your future. How do you plan to pay for that? How about the honeymoon? A down payment for a house? Will there be kids coming along? This money could start a college fund.

I agree with not saving just for the sake of saving. The point of saving is to enable you to meet your goals. What are your goals (both of you - not just you alone)? I wonder if you've discussed this 5K trip with your partner.

[BrianTheMute]

We plan on having a private, cheap (or free) wedding. Getting a small, cheap apartment. We don't see the point on wasting money on a house. And no kids, definitely not.

[photo]

I was curious and looked up the price of the Polynesian hotel. It's over $400 a night for the cheapest room. Quite frankly, I can pay cash right now -- for everyone and their families who have replied in this thread -- to stay at the Polynesian for several weeks.

However, (sorry DisneySteve!) I will not do that. I won't even pay for one night at the Polynesian for my own family because I can do so much more on much less money.

Are you really going to be spending that much time in the hotel room? I've been to Disneyland, Disney World, and Disneyland Paris, and each time spent the majority of the day in the park and only wanted a nice clean bed at night.

You can spend all that money on a trip-of-a-lifetime now OR be frugal and perhaps visit Disney once every few years. Something tells me that the Polynesian is not where DisneySteve's family stays each year.

Personally, I'd rather travel more often on a reasonable budget than blow the wad on one over-priced trip and never again be able to afford a repeat.

Sorry for the platitude, but where there's a will, there's a way.