Will the NASDAC's Decline & Dow's Tumble Make a Difference in Your Travel Plans?
 

Seriously, will the present (going down, way down) condition of the U.S. stock market make a difference in your travel plans to Europe over the next year?

Yes, daytrader, it will affect our traveling plans, and many other plans too(retirement,acquisitons etc,). I wish it were not so, but this downturn can hurt all levels of society, not just US, but wordwide. It is a ripple effect...maybe even tsunami like. <BR>We "like" to take at least 2 Europe vacations, and 3 US/Canada/Mexico trips. We may have to pare down the list a bit.... quite a bit actually. <BR> Judy :-(

Hi Judy: <BR> <BR>Alas, my husband and I are in the same situation -- we will most likely cut back on the length of time we would have spent in Europe and rather than making it 15-17 days, will make is 8-9 days. <BR> <BR>Day

Hi daytrader, no, it will not affect my travel plans this year or next year, but it has affected my plans to pick a new MB Conv in Germany next year. I'm hoping that it will recover within the next 4 years. If not I guess I'll have to continue to work for a while. <BR>

Yes, a little bit. Travel cannot come before three kids' college costs. <BR> <BR>I may be nuts, but I am not irresponsible. <BR>

NASDAQ and the Dow may have far less impact on people’s travel plans than George Bush. He has been crushing consumer confidence with his dire predictions about the economy, which is still relatively strong, just not as robust as it was a year or two years ago. Why is he so pessimistic? So he can set the stage for his bogus tax cut, which will benefit the rich (the top 1%) and leave the rest of us with crumbs. If you’re worried about your Social Security and Medicare benefits (where we should be using the so-called surplus) being available when you retire, you might want to talk to your Congress(wo)man and Senators and make sure they stop Dubya in his tracks.

Why would the markets have anything to do with my travel plans? The money I do have in the market is going to stay there--only a fool would invest money he/she can't afford to leave untouched for a very minimum of 5 years. Any money that you'd have to get at before that time should be in less risky investments. <BR> <BR>I love that stocks have fallen. This way, I can buy cheaply.

Get a life, Annie!

It won't change my plans, although if the dollar falls against the Euro currencies it may make a difference is how well we eat while we're there. My investments are all long-term. Good companies will rise again.

Indirectly it will affect me. Although I don't plan on touching what I have in a very highly rated mutual fund, last year it dropped drastically in value -- no big deal in itself. But the fund hit me with a $35,000 capital gains. I understand this was quite common this year as funds started selling off some of their tech stocks which resulted in huge gains for the company, but translates to a loss to me for the year. So I have to pay about $4000 extra in tax to cover that capital "gains" which really was a loss! That extra tax payment is coming right out of my travel fund! And unfortunately I'm doing my long summer trip in the US including Alaska this year. It would be far more economical for me to be traveling in Europe this summer.

Annie, <BR> <BR>I am guessing you have no kids in college yet (or none still). True enough, our invested money is not our travel money. But the downturn in the market means that now is NOT the time to sell certain stocks for college costs. So the difference comes from current income. And, as a corollary, discretionary income IS impacted - - for a lot of families in what might be prime travel years. <BR>

It might alter my choice of a travel companion if my boyfriend gets any crankier. But our trip's still on for May. I don't plan too far ahead for the future - we'll see what happens.

With the downturn in the stock market I am reconsidering travel this year. I try not to earmark specific money for any particular purpose, but seeing my retirement savings dwindle makes me hesitate to spend on vacations. I believe the market will turn around at some point, so right now it's just a loss on paper. Still, I'm not wealthy and need to be cautious.

my traveling will not be affected (i only can take 1 major vacation a year anyway). Although my new living room sofa and bedroom furniture will have to wait!

Our travel plans will be affected. We live in a high tec area and got caught in the investment wave so along with the low canadian dollar we will definitely be putting trips on hold.

Luckily for me, I have no kids in college. However, should I have kids, they, like me, will pay their own way through college. <BR> <BR>I don't understand how anyone who currently needs to pay college tuition would leave this money in the market. That money should have been transferred into stable investments at least 5 years ago.

Annie <BR> <BR>Everything you have said on this thread makes great investment sense. You go, girl!

Dear DayTrader, <BR>There will be lots of people (travelers) affected by the sixty-two percent (as of today) drop in the NASDAQ this past year. <BR>Most people, excluding politicians, live on budgets based on their incomes. When your income or capitol gains are less, you should probably spend less. Hence, less $$ on traveling to Europe. <BR>The NASDAQ in the late nineties got over inflated on Y2k scams and Internet fantasies. It was driven up on hype and hope not facts and profits. <BR>Although, even when the markets are diving, wise investors can still make money. <BR>Fortunately for me, I plan travel more this year. And thanks to President Bush and his across the board tax cuts, maybe next year we all might have a little extra $$ to spend on travel. <BR> <BR> <BR>Mark <BR>

Unfortunately (?), Daytrader, <BR>I doubt it will. I don't have a lot of money to invest and/or lose at this point...

Mark - <BR> <BR>Where are you going with the whopping $348 you'll get - Newark?

Do the math, folks. If you're a single, working stiff making less than 100K per year, Bush's "tax cut" won't give you enough extra dough to buy a bus ticket to DisneyWorld. <BR>The stock market isn't affecting my plans the least bit -- two thirty-day European trips this year while the dollar is still strong, before the Republicans can destroy it with their traditional weak dollar policies, tax cuts for the rich, bank bailouts for the rich, star wars military boondoggle projects for big rich defense contractors -- well, you get the idea.

Do any of you read the details of the tax cut. The richest that now pay 72% of the taxes will end up paying 75%. The pooest tax bracket will drop from 5% of the total tax revinue to 2.3%. Now if it were truly fair there would be a flat tax of say 10% for everyone with most scam deductions removed. Of course that will never happen no matter whos in office. To much special interest and lobbiest for both parties for that to happen unless the people wake up and start applying pressure. <BR>

We just find out that we need to pay a capital gain taxes of more than $14,000 and as a result we will probably take one less trip to Europe or stop paying college tuition for our grandkids. What to do? They can maybe learn how to apply for a student loan

Goodness, people, didn't your mothers teach you that it wasn't polite to talk about how much money you have, which is what this thread is all about.

Santa Chiara: No. I do not think this is just about how much money one has, but how external factors can affect our lives. We have a 401k, that was tied to the Dow Jones, the Dow plummets, and SOME of our retirement money is gone(at least on paper, but it is ALL on paper today). MY husband and I have worked very hard over many years, to save and plan for retirement, as of today, there are less assests available for our future use. Money earmarked for travels will be used to pay other more essential things, ergo the ripple effect. <BR>Let's not touch the "class warfare" issue, because this situation will affect everyone. <BR> I guess we will have to hold onto the rollercoaster until the ride stops(I hope!) Judy

Of course, Santa Chiara, she did. But that's what got me into trouble -- not talking about money gave me no indication of what to do with it after I earned it, i.e. how to save, budget & spend well. Information is power. And sharing is not a sin.

Did you people honestly think that the stock market was going to go on and on forever? I still hold that "how much money I lost in the stock market yesterday" (or how much, specifically, in capital gains) lets people know how much you had before. And if your long-term retirement funds are tied to your trip in the next two or three months, then you are justified in being concerned. My belief is, and I am sure I will be corrected if wrong, that most are lamenting over the loss of five-star hotels and $500 meals, not over having lost out on actual travel. <BR> <BR>

Last April when we began to plan this trip I put our travel money is in a 1 yr.CD, so this will not affect our plan for this year. <BR>Santa Chiara, <BR>I , too, am amazed at the fact that people discuss things like income here. <BR>there was a post this December, about how much people earned, and recently a post on type of cars people drive. <BR>I was taught one did not discuss the cost of things, or talk about how much money one made. <BR>It really isn't anyone's busy, but if others choose to mention $$ amounts, so be it. <BR>My mother would rather talk about SEX than money, and when I was growing up, I do not think I ever heard her mention sex at all to my sister and myself , that is how distasteful she viewed the subject. <BR>And DayTrader, even with the lack of money discussions, my father still taught us how to deal with money in an appropriate , and sound manner. <BR>Not discussing how much one earns, and how much things cost does not necessarily lead to a lack of education on how to be responsible with money <BR>I also understand that you did not ask about $$ directly, so this really isn't directed to you. <BR>Your question is an interesting one. <BR> <BR> <BR>

Patrick, I feel your pain. I got burned by "phantom" capital gains a few years ago, and I have refused to buy mutual funds since. My current approach is to buy individual stocks, not funds. With a buy and hold approach, you won't pay capital gains on individual stocks until you actually sell something. <BR> <BR>But as for the original question, yes, we've drastically reduced our travel. Only one pitiful week at the beach for us this year. We feel very nervous about the economy generally, so we've tightened our belts on most everything. Ahem.

No, the market's drop isn't going to affect my travel. I'm a single professional and the money I have in the market is in very long-term investments: retirement funds, 403(b)s, the SEP IRA I started when I went out as a solo freelancer last year, etc. Since I still have nearly 30 years to retirement, I expect those funds will fluctuate a lot more before they're done, so I try to pay only enough attention when I receive my quarterly statements to decide whether or not I need to change the allocations. <BR> <BR>Any money that I'm investing for the short term--that might go to travel, a large purchase, etc.--I put in a high-yield money market fund. It might not bring in the 20% and 30% gains that the stock market was offering just a year ago, but it doesn't lose money either. I'm quite happy with 5% guaranteed returns on short-term investments like that, knowing the money I invested plus a small but significant amount will still be there when I'm ready to spend it. <BR> <BR>Still, I know I'm lucky: I don't have kids to support and I own my own home. My freelance work seems to only be increasing in the downsliding economy--as companies lay off staff, they don't necessarily have any less *work* to do, so they're looking for freelancers to pick up the slack without the expense of fulltime salaries and benefits. <BR> <BR>I envied people with lots of money in the market and seemingly endless gains in the late 1990s, I must admit. But now I'm glad I don't have to watch the ticker daily with a sick feeling in my stomach. I don't own a BMW, but I'm doing okay, and next month's trip to Paris is not in jeopardy because Cisco announced layoffs yesterday.

Wow Santa Chiara, did you open a can of worms! When we went to London 3 weeks ago, we stayed at the President hotel(and I think you know what that is like). I have never stayed in a 5* hotel or payed 500$ EVER! We were as poor as church mice when we married, my husband was in the army and I was still in college. I am grandaughter of poor immigrants, by crikey! So please don't do generalizations of very complicated issues. I NEVER mentioned money(specific amounts, the nuns told us never to) I just answered the question! <BR>Judy

Nope. By sticking with investments that weren't based on hype, I may not have "made" as much money in the past few years, but I also sure the hell haven't "lost" as much money either. Just nice, steady unspectacular gains. <BR> <BR>

Judy, reread my message; I obviously wasn't referring to you--or anyone in particular (in fact, I had to scroll back to see which one you wrote). I didn't make generalizations, either, I made assumptions, probably wrongly. <BR> <BR>Anyway, I am not playing anymore. Too many grumpy people on this particular thread.

Kay, <BR>I will get a lot more than $348.00 / year back from the pending tax reduction. But, using your figure of $348.00 per year for 10 years at my current investment return rate, it would net me prior to capitol gains taxes, approximately $14,500, and thats not fuzzy math! <BR>If you think you should give more to the government and have them invest it for you why don't you send them extra each year. I'm sure they will appriciate it. <BR>Mark

Pax, S.C. My daughter called last nite and asked if we could still afford to pay for her wedding in April(we can, money is there) I did not mean to come on so strong, I usually don't. You are probably right, too many cranky people, my husband, daughter and some neighbors included. It wears on one after a while.... Still solvent, Judy

OK, I have to put in a good word for mutual funds, since I work in the industry. <BR> <BR>Research is a strong word. If you do enough of it before investing, you should be OK. If you don't like capital gains, look for a fund that has low turnover and a long-term investment objective. Prospectus reading may not be the most exciting, but it will definitely clue you in on the manager's style. <BR> <BR>It scares me that someone would recommend dumping mutual funds and buying only stocks. The first word I learned when I moved into this industry was diversification. Would I rather have had all my $$ in one or two tech stocks yesterday or a mutual fund with 200 different stocks? Easy answer! <BR> <BR>Be careful how you make your decisions. Do your homework and ask questions whenever you aren't sure. <BR> <BR>Ok, stock investors, have at me.... <BR> <BR>PS - I leave for London soon and will continue to travel on the $$ I saved when times were good! I also pay tuition and will do so as long as possible. Why not start the kids out without massive debt if you can?

My tickets are already bought for Budapest & Rome - I'm locked in. The only reason I won't travel is if I'm laid off - and even then - who knows. The stock market is gambling - so many people want to make a lot of money quickley, without any effort or discipline. How may pairs of kahkis do you need? As for Bush's tax cut - it a gesture at the most. What American doesn't enjoy hearing him say "it's the American citizen's money, not the government " Taxes = bad. When i hear examples like John Doe will get $1600 tax cut - that workd out to a little more than $4 a day. How much does a pair of jeans cost? How much was your electric / gas bill? How much is your rent? If the President wants to help the American citizen - reduce the costs of living. Interest rates, the Dow & Nasdaq go up and down - rents never go down (unless there's a depression) Landlords are nothing more than ticks living off the hard work of other people.

It will not affect our travel plans for this year or next. All our short term requirements are in money market funds or cash equivalents. It has had a significant impact on our long term investments, retirement and college savings, ouch! But since these goals are a decade plus away, we'll sit tight and ride out the storm.

The downturn in the market has affected me greatly; I'm a baby boomer, 401k plan that's heavily in the market, and retirement not 8 years away. Suddenly, my retirement is looking at 10-15 years away, unless I can recoup the value of my 401k AND growth as though the value had never declined, in the next two years. <BR> <BR>I should put my travel money into savings to increase my retirement funds, but I won't...heck, I'll just move in with one of the younger Loons when I retire; they owe me anyway. <BR> <BR>What's killing me is stock options i/o cash for quarterly bonuses.

Anyone who has ever taken an economics course could see the downturn coming. The economy operates in 10-to-12 year cycles, and EVERYTHING for the past year has indicated that we were coming to the end of this current cycle. <BR> <BR>I'm enjoying watching the people who were greedily investing in companies that they didn't research losing money now. I didn't get rich during the big boom of the stock market because I invested in stable companies, so I'm also not going to be poor now! <BR> <BR>The only people I feel sorry for are those who planned to retire in about 6-7 years. They probably hadn't transferred all of their money yet into stable investments, and they may not have enough time left to watch their investments go back up. Because the market will, in the long-term, go back up.