How do you determine if taking time off to travel is affordable?

We evaluate affordability by calculating the long-term impact on your plan. We do this by projecting the age at which you'll deplete your savings and whether that age will change as a result of costs incurred and loss of income during your travel.

We created a rating system to help you understand how this goal fits into your current plan. The rating system has four categories:

  1. Comfortable — the goal has no impact on the age at which you are projected to deplete your savings.
  2. Manageable — the goal will change the age at which you deplete your savings by less than 10%, but your savings will still last until you turn 85. (Age 85 is the median life expectancy for a 65 year old in the United States.)
  3. A stretch — the goal will change the age at which you deplete your savings by more than 10% or you will run out of savings before age 85.
  4. Unaffordable — the goal will cause you to deplete your savings earlier than age 65.
Was this article helpful?

This communication has been prepared solely for informational purposes only. Nothing in this communication should be construed as an offer, recommendation, or solicitation to buy or sell any security or a financial product. Any links provided to other server sites are offered as a matter of convenience and are not intended to imply that Wealthfront or its affiliates endorses, sponsors, promotes and/or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated otherwise.

Wealthfront offers a free software-based financial advice engine that delivers automated financial planning tools to help users achieve better outcomes. Investment management and advisory services are provided by Wealthfront Advisers LLC, an SEC registered investment adviser, and brokerage related products are provided by Wealthfront Brokerage LLC, a member of FINRA/SIPC.

Wealthfront, Wealthfront Advisers and Wealthfront Brokerage are wholly owned subsidiaries of Wealthfront Corporation.

© 2020 Wealthfront Corporation. All rights reserved.