Amid Economic Uncertainty, 1 in 4 Americans Plan to Spend More on Travel this Summer
OMAHA, Neb.--(BUSINESS WIRE)-- The weather is getting warmer and school is winding down, and that means one thing: It's time for a summer vacation. But, amidst continued economic uncertainty, are Americans planning to travel this summer? According to a recent survey released by TD Ameritrade Holding Corporation (NYS: AMTD) , the majority (78%) of Americans say yes, a summer vacation is on the agenda.
Vacation often comes with a hefty price tag, especially when you factor in air travel or fuel for long road trips. But, the expense doesn't seem to be holding people back. In fact, roughly one in four (26%) of Americans surveyed plan to spend more money on their summer travels this year compared to the last five years. Another 55 percent will spend the same. And, nearly half (48%) of Americans plan to travel more than 400 miles from home while staying in the U.S. Twenty-nine percent plan to leave North America.
"While uncertainty remains, there have been good indicators that the economy is getting stronger and Americans are starting to feel more optimistic. That optimism can help fuel spending, so it's not surprising to see that so many people plan to travel this summer," said Carrie Braxdale, managing director, investor services TD Ameritrade, Inc. ("TD Ameritrade"), a broker-dealer subsidiary of TD Ameritrade Holding Corporation. "Everyone deserves a vacation, and with careful planning it can be affordable. Be sure to assess how a vacation fits into your long-term savings goals and make sure you don't overspend and accrue unwanted debt."
Like any big savings goal, it all comes down to planning. As you plan for your summer vacation, Braxdale suggests four tips to help keep you on track:
Start planning early. Determining things like where you want to go, how much it will cost and/or the type of vacation you can afford will help you avoid overextending and piling expenses on a credit card or worse yet, pulling funds away from long-term savings goals like retirement.
Develop a vacation budget. Determine what you will spend on travel, hotel, food and accommodations before your trip. Once you're on vacation, track expenses daily and stick to your budget. Try not to overindulge on food, activities or souvenirs that you didn't plan for.
Don't get caught up in the moment. It may be the trip of a lifetime, but try not to get caught up in the moment and overspend or overextend yourself by putting it all on your credit card. You don't want to get stuck paying it off for years to come.
Consider the long-term impact of cutting back. Cutting back on vacation expenses each year and contributing to an IRA instead could potentially equal thousands of dollars toward retirement. For example, an additional $500/year contribution into an IRA starting at age 30 until age 55 could mean an additional $39,000 toward retirement ($500 a year, 25 years, 8% rate of return).
For help planning for retirement, visit TD Ameritrade's Retirement Center, where you can learn about different types of IRAs and use tools like Retirement Planner and WealthRuler™ to help review your approach to retirement. You can also follow the company on Twitter, @TDAmeritradePR.
About the Survey
1,028 investors participated in an online survey conducted by Research Now on behalf of TD Ameritrade Holding Corporation from March 28-April 1, 2013, and offered their views on economic conditions and outlook for the market in general. These investors have at least $10,000 in investable assets, own securities in brokerage accounts, are 18 years or older, are involved in managing their portfolios, and have traded securities at least once in the past 12 months. The 1,028 survey respondents represent a random sample of investors selected from a consumer panel of individuals in the U.S. who have access to the Internet. The margin of error in this survey is ±3.0%. This means that in 19 cases out of 20, survey results based on 1,089 respondents will differ by no more than 3.0 percentage points in either direction from what would have been obtained by seeking the opinions of all eligible individuals in the U.S. who are online.
About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade's (NYS: AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 37 years. An official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams, TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade's newsroom or www.amtd.com for more information.
About Research Now
Research Now is the leading global online sampling and online data collection company. With over 6 million panelists in 38 countries worldwide, Research Now enables companies to listen to and interact with real consumers and business decision makers in order to make key business decisions. Research Now and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other's products and services.
Photos/Multimedia Gallery Available:http://www.businesswire.com/multimedia/home/20130520005187/en/
TD Ameritrade Holding Corporation
Christina Goethe, 201-369-8541
Communications & Public Affairs
Jeff Goeser, 402-597-8464
Investor Relations & Finance
KEYWORDS: United States North America Nebraska
The article Amid Economic Uncertainty, 1 in 4 Americans Plan to Spend More on Travel this Summer originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.