How to Travel on a Budget Without Sacrificing Experience: Smart Tips for Millennials

October 4, 2024

Travel may be one of the most enriching ways to spend money. It can give you a fresh perspective, a sense of adventure, and cherished memories with loved ones that will surely become the stories you’ll share and relive time and time again. 


Millennials have a deep passion for travel, often prioritizing experiences over material possessions. Yet, having been through multiple recessions, we’ve learned the importance of traveling without straining our finances. 


At the same time, we refuse to compromise on the rich, meaningful experiences that make travel so rewarding. Fortunately, with a few savvy strategies, you can explore the world without missing out on the fun, food, and unforgettable experiences that make each trip special. 


How To Save Money For A Trip


Before you even start planning your trip, it's important to lay the groundwork for your vacation budget. Thankfully, the preparation is straightforward. 


  • Set Up a Travel Fund: One of the easiest ways to start saving is to set up a dedicated travel fund. Even $25 or $50 a month can add up fast. If your employer offers direct deposit, try automating a portion of your paycheck to go straight into that fund.

  • Track Your Expenses: Know where your money is going before cutting costs. It’s worthwhile to spend the time to categorize and track your spending, at least for a short time. You might find some surprising areas where you can trim expenses—like choosing a more affordable grocery store or finding smart ways to reduce your utility bills. You can funnel those savings straight to your travel fund.

  • Make Small Lifestyle Adjustments: Saving doesn’t have to be painful. Mixing in free social activities can create some extra room in your budget for travel. Think about alternating your streaming services to one at a time or skipping drinks when you dine out.

  • Cash In on Credit Card Rewards: Many credit cards offer travel rewards that can help you save on flights and accommodations. However, if you take advantage of these programs, make sure you're not overspending just to earn points.


Picking Affordable Adventures


Not all dream destinations come with a high price tag. You don’t have to stay in five-star hotels or dine at Michelin-starred restaurants to have an unforgettable time.


Skip the obvious (and often expensive) tourist spots like Paris or Tokyo. Instead, seek out emerging or less-traveled destinations. Cities like Mexico City, Lisbon, and Hanoi offer rich cultural experiences, great food, and a ton of history—all at a fraction of the cost of more famous destinations.


Another way to save money is by traveling during off-peak times. The “shoulder season”—right before or after the high tourist season—can save you hundreds, if not thousands, of dollars. You still get good weather and open attractions, but you’ll avoid the steep costs and crowds.


How to Travel for Cheap: 6 Travel Hacks


Seasoned travelers use a host of strategies to keep their globetrotting within their means. Pick a couple from the list below that seem doable (not everyone can manage flexible travel dates) and implement them.


1. Be Flexible with Flights: Flexibility is your best friend when finding cheap flights. Instead of locking in specific dates, use tools like Google Flights or Skyscanner’s “Everywhere” search feature to find the cheapest days to travel. Avoid weekend departures, and try flying out on a Tuesday or Wednesday for lower fares.


2. Use Budget Airlines (but Read the Fine Print!): There are plenty of low-cost airlines like Spirit, Ryanair, or Frontier that offer competitive fares, but be careful about extra fees. Budget airlines often charge for things like seat selection, carry-on baggage, and even printing your boarding pass. If you’re mindful of these extras, you can still score a great deal.


3. Rethink Your Accommodations: Skip the fancy hotels and opt for more affordable accommodation options such as hostels, Airbnb, or even house-sitting. Sites like Couchsurfing allow you to stay with locals for free, giving you a more authentic experience—and more cash for other aspects of your trip.


4. Use Public Transport or Walk: Rather than relying on expensive taxis or ride-sharing services, use public transportation. In many cities, buses, metros, and trains are super affordable and will take you wherever you need to go. Better yet, walk! It’s free and gives you a better feel for the place you’re visiting.


5. Cook Your Own Meals: Eating out for every meal can quickly drain your budget. If you're staying in an Airbnb or hostel with a kitchen, take advantage of local grocery stores and markets. Cooking a few meals yourself will save you tons of money. Plus, it’s a fun way to try local ingredients and add to your experience.


6. Find Free (or Almost Free) Experiences: There’s no shortage of incredible free experiences while traveling. Many museums have free days, parks are usually free to explore, and walking tours—often run by locals—can give you a rich understanding of a city for a small tip. Look for festivals, markets, and other local events that let you dive into the culture without spending a fortune.


How to Maximize Your Budget While Traveling


You’ve saved, booked the cheap flight, planned for some travel hacks, and now you are ready for your adventure! Before you take off, you can take a few more steps to use your time (and money) wisely. 


Try setting a daily spending limit. Break down your overall budget into daily amounts for food, activities, and transportation. This helps ensure you don’t overspend on day one and feel strapped for cash later in your trip.


You can also avoid checked baggage fees by packing light. A carry-on and a small backpack are usually enough, and you won’t have to pay for luggage handling or risk losing your bags. Packing light also makes moving between destinations easier, whether hopping on a train or walking a few blocks to your accommodation.


Another way to save frustration is to pre-book popular attractions. Not only does this help you skip long lines, but it can also save you money. Many sites offer early-bird discounts or bundle deals. Plus, you won’t need to worry about tickets selling out last minute.


Finally, be smart about exchanging money. Using your bank’s ATM network or a credit card with no foreign transaction fees is best. Avoid exchanging currency at the airport, where rates tend to be much higher. Keep an eye out for ATM fees and foreign currency surcharges when abroad, and be sure to alert your credit card that you are traveling so they don’t lock your card!


How Five Pine Wealth Management Can Help


Traveling on a budget as a millennial doesn’t mean sacrificing what makes travel magical. Wealth management is all about being strategic with your savings and choices. With the right mindset, some insider hacks, and a little flexibility, you can explore the world without draining your bank account. 


At Five Pine Wealth Management, we recognize that “wealth” means more than what’s in your bank account. We’ll work with you to help create a financial plan for a life full of rich experiences and lasting memories. We specialize in helping you master your financial mindset and balance sheet.


For help finding that balanced approach, contact us to schedule a personalized consultation. Call 877.333.1015 or email us at info@fivepinewealth.com. Let’s make a plan for your next adventure!


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You've Maxed Your 401(k). Now What? A Strategic Guide for High Earners

January 26, 2026
Key Takeaways High earners maxing out 401(k)s at $24,500 are only saving about 8% of a $300,000 income in their primary retirement account. The mega backdoor Roth strategy can increase total 401(k) contributions to $72,000 annually with tax-free growth. A comprehensive approach can create nearly $3 million in additional retirement wealth over 20 years. It's 2026. You're checking all the boxes. You're earning upwards of $300,000 annually, and you're maxing out your 401(k) every year. You've reached the $24,500 contribution limit and feel confident about securing your financial future. Then you realize $24,500 represents less than 8% of your income. Over 20 years, this gap adds up to millions in lost opportunity. Thankfully, you're not stuck with the basic 401(k) playbook. There are sophisticated strategies beyond your contribution limit. 5 Strategic Moves for High Earners with Maxed-Out 401(k)s Here are five sophisticated strategies that can help you build wealth beyond your basic 401(k) contributions. All projections assume a 7% average annual return and are estimates for illustrative purposes. 1. Mega Backdoor Roth Contributions If your employer's 401(k) plan allows after-tax contributions, this could be your biggest opportunity. With employee contributions, employer match, and after-tax contributions, the combined 401(k) limit for 2026 is $72,000 ($80,000 if you're 50 or older). The mega backdoor Roth works because you immediately convert those after-tax contributions into a Roth account, where they grow tax-free forever. The catch: Not all employers offer this option. You need a plan that permits after-tax contributions and in-service Roth conversions. The impact: The available space for after-tax contributions depends on your employer match. With a typical employer match of 3-6% (roughly $10,000-$21,000 on a $350,000 salary), you could contribute approximately $26,500-$37,000 annually. At 7% average returns over 20 years, this creates approximately $1.1-$1.5 million in additional tax-free retirement savings. 2. Donor-Advised Funds for Charitable Giving If you're charitably inclined, donor-advised funds (DAFs) offer a way to bunch several years of charitable contributions into one tax year, maximizing your itemized deductions while still spreading your giving over time. You get an immediate tax deduction for the full contribution, but you can recommend grants to charities over many years. The funds grow tax-free in the meantime. The catch: Once you contribute to a DAF, the money is irrevocably committed to charity. You can't get it back for personal use. The impact: Contributing $50,000 to a DAF in a high-income year (versus giving $10,000 annually) can create immediate federal tax savings of $15,000-$18,500 while still allowing you to support the same charities over five years. 3. Taxable Brokerage Accounts with Tax-Loss Harvesting Once you've maximized tax-advantaged accounts, strategic taxable investing becomes your next move. The key is working with a financial advisor who implements systematic tax-loss harvesting throughout the year. Tax-loss harvesting involves selling investments at a loss to offset capital gains elsewhere. Done strategically, this can save thousands in taxes annually. The catch: Long-term capital gain rates (0%, 15%, or 20%) are lower than ordinary income tax rates, but you're still paying taxes on gains. It's less tax-efficient than retirement accounts, but far better than ignoring tax optimization. The impact: For high earners in the 35-37% ordinary income brackets, the difference between long-term capital gains (20%) and ordinary rates is significant. Effective tax-loss harvesting on $50,000 in annual gains over 20 years could save $150,000+ in taxes. 4. Health Savings Account (HSA) Triple Tax Advantage HSAs offer a unique triple tax benefit: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. With 2026 contribution limits of $4,400 for individuals and $8,750 for families, this adds another powerful layer to your strategy. You can invest HSA funds just like an IRA and let them grow for decades. After age 65, you can withdraw the funds for any purpose, medical or otherwise. The catch: You must have a high-deductible health plan to qualify for an HSA. After age 65, non-medical withdrawals are taxed as ordinary income (like traditional IRA distributions), but you still benefit from the upfront deduction and decades of tax-free growth. The impact: Contributing the family maximum ($8,750) annually for 20 years at a 7% average annual return creates approximately $355,000-$360,000 in tax-advantaged savings. 5. Backdoor Roth IRA Contributions Not to be confused with mega backdoor Roth contributions! Even if your income exceeds the Roth IRA contribution limits, you can still fund a Roth through the backdoor method: make a non-deductible contribution to a traditional IRA, then immediately convert it to a Roth IRA. The catch: If you have existing traditional IRA balances, the pro-rata rule complicates things. You may want to consider rolling those funds into your 401(k) first if your plan allows. The impact: Contributing $7,000 annually through the backdoor Roth for 20 years at 7% average annual return creates approximately $285,000-$290,000 in tax-free retirement savings. What Compounding These Strategies Looks Like Over 20 Years Let’s look at approximate outcomes based on a 7% average annual return. 401(k) Only: Annual contribution: $24,500 Total after 20 years: ~$1M 401(k) + Mega Backdoor Roth: Annual contribution: $72,000 Total after 20 years: ~$3M Note: Mega backdoor Roth space varies based on your employer's match. These calculations assume you're maximizing the total annual limit. Comprehensive Approach (under age 50): Mega Backdoor Roth: ~$3.0M HSA: ~$350K-$360K Backdoor Roth IRA: ~$285K-$290K Strategic taxable investing with tax-loss harvesting Total retirement savings: ~$3.6M+, plus taxable investments Comprehensive Approach (ages 50-59): With higher contribution limits and catch-up contributions, total retirement savings can reach ~$4M+ over 20 years. Comprehensive Approach (ages 60–63 with enhanced catch-up contributions) Higher contribution limits during peak earning years allow for meaningful acceleration of retirement savings. The exact impact depends on timing, contribution duration, and existing balances. The Bottom Line The difference between stopping at your basic 401(k) and implementing a comprehensive strategy can approach $3 million or more in additional retirement wealth over time. Why Strategic Coordination Matters These aren't either/or decisions. The most effective approach coordinates multiple strategies while ensuring everything works together. At Five Pine Wealth Management , we help high-earning clients build comprehensive plans that go beyond the 401(k). We coordinate your employer benefits, tax strategies, and investment accounts to create a cohesive approach that maximizes your wealth-building potential. This requires working across several areas: Analyzing your employer's 401(k) plan for mega backdoor Roth opportunities Implementing systematic tax-loss harvesting in taxable accounts Coordinating Roth conversions and backdoor contributions Optimizing your HSA as a long-term retirement vehicle Ensuring charitable giving strategies align with your tax situation Maximizing catch-up contributions when you reach milestone ages As fiduciary advisors, we're legally obligated to act in your best interest. That means we're focused on strategies that serve your goals, not products that generate commissions. Ready to see what's possible beyond your 401(k)? Email us at info@fivepinewealth.com or call 877.333.1015 to schedule a conversation about your specific situation. Frequently Asked Questions (FAQs) Q: Does my employer's 401(k) plan automatically allow mega backdoor Roth contributions? A: No. You need a plan that permits after-tax contributions and in-service conversions to Roth. Check with your HR department. Q: How do I prioritize which investment strategies to use? A: Generally, maximize employer match first (it's free money), then fully fund your 401(k), explore Mega Backdoor Roth if available, max out your HSA, consider backdoor Roth IRA contributions, and then move to taxable accounts with tax-loss harvesting. We can help determine the right sequence for your circumstances.

What's the Best Asset Allocation for Someone 10 Years Away from Retirement?

December 22, 2025
Key Takeaways Your guaranteed income sources (pensions, Social Security) matter more than your age when deciding allocation. Retiring at 65 doesn't mean your timeline ends. You likely have 20-30 years of investing ahead. Think in time buckets: near-term stability, mid-term balance, long-term growth. You're 55 years old with over a million dollars saved for retirement. Your 401(k) statements arrive each month, and you find yourself questioning whether your current allocation still makes sense. Should you be moving everything to bonds? Keeping it all in stocks? Something in between? There's no single "correct" asset allocation for everyone in this position. What works for you depends on factors unique to your situation: your retirement income sources, spending needs, and risk tolerance. Let's look at what matters most as you approach this major life transition. Why Asset Allocation Changes as Retirement Approaches When you’re 30 or 40, your investment timeline stretches decades into the future. When you’re 55 and looking to retire at 65, that equation changes because you’re no longer just building wealth: you’re preparing to start spending it. You need enough growth to keep pace with inflation and fund decades of retirement, but you also need stability to avoid the need to sell investments during market downturns. At this point, asset allocation 10 years before retirement is more nuanced than a simple “more conservative” approach. Understanding Your Actual Time Horizon Hitting retirement age doesn't make your investment timeline shrink to zero. If you retire at 65 and live to 90, that's a 25-year investment horizon. Think about your money in buckets based on when you'll need it: Time Horizon Investment Approach Example Needs Short-Term (Years 1-5 of Retirement) Stable & accessible funds Monthly living expenses, healthcare costs, and early travel plans Medium-Term (Years 6-15) Moderate risk; balanced growth Home repairs, care and income replacement, and helping grandchildren with college Long-Term (Years 16+) Growth-oriented with a Long-term care expenses, decades-long timeline legacy planning, and extended longevity needs This bucket approach helps you think beyond simple stock-versus-bond percentages. Asset Allocation 10 Years Before Retirement: Starting Points While there's no one-size-fits-all answer, here are some reasonable starting frameworks: Conservative Approach (60% stocks / 40% bonds) : Makes sense if you have minimal guaranteed income or plan to begin drawing heavily from your portfolio upon retirement. Moderate Approach (70% stocks / 30% bonds) : Works well for those with some guaranteed income sources, moderate risk tolerance, and a flexible withdrawal strategy. Growth-Oriented Approach (80% stocks / 20% bonds) : Can be appropriate if you have substantial guaranteed income covering basic expenses and the flexibility to reduce spending temporarily as needed. Remember, these are starting points for discussion, not recommendations. 3 Steps to Evaluate Your Current Allocation Ready to see if your current allocation still makes sense? Here's how to start: Step 1: Calculate your current stock/bond split. Pull your recent statements and add up everything in stocks (including mutual funds and ETFs) versus bonds. Divide each by your total portfolio to get percentages. Step 2: List your guaranteed retirement income. Write down income sources that aren't portfolio-dependent: Social Security (estimate at ssa.gov), pensions, annuities, rental income, or planned part-time work. Total the monthly amount. Step 3: Calculate your coverage gap. Estimate monthly retirement expenses, then subtract your guaranteed income. If guaranteed income covers 70-80%+ of expenses, you can be more growth-oriented. Under 50% coverage means you'll need a more balanced approach. When to Adjust Your Allocation Here are specific triggers that signal it's time to review and potentially adjust: Your allocation has drifted more than 5% from target. If you started at 70/30 stocks to bonds and market movements have pushed you to 77/23, it's time to rebalance back to your target. Your retirement timeline changes significantly. Planning to retire at 60 instead of 65? That's a trigger. Every two years of timeline shift warrants a fresh look at your allocation. Major health changes occur. A serious diagnosis that changes your life expectancy or healthcare costs should prompt an allocation review. You gain or lose a guaranteed income source. Inheriting a pension through remarriage, losing expected Social Security benefits through divorce, or discovering your pension is underfunded. Market volatility affects your sleep. If you're checking your portfolio daily and feeling genuine anxiety about normal market movements, your allocation might be too aggressive for your comfort, and that's a valid reason to adjust. Beyond Stocks and Bonds Modern retirement planning involves more than just deciding your stock-to-bond ratio. Consider international diversification (20-30% of your stock allocation), real estate exposure through REITs, cash reserves covering 1-2 years of spending, and income-producing investments such as dividend-paying stocks. The Biggest Mistake: Becoming Too Conservative Too Soon Moving everything to bonds at 55 might feel safer, but it creates two significant problems. First, you're almost guaranteeing that inflation will outpace your returns over a 30-year retirement. Second, you're missing a decade of potential growth during your peak earning and saving years. The difference between 60% and 80% stock allocation over 10 years can mean hundreds of thousands of dollars in portfolio value. Being too conservative can be just as risky as being too aggressive, just in different ways. Questions to Ask Yourself As you think about your asset allocation for the next 10 years: What percentage of my retirement spending will be covered by Social Security, pensions, or other guaranteed income? How flexible is my retirement budget? Could I reduce spending by 10-20% during a market downturn? What's my emotional reaction to seeing my portfolio drop 20% or more? Do I plan to leave money to heirs, or is my goal to spend most of it during retirement? Your honest answers to these questions matter more than your age or any generic allocation rule. Work With Professionals Who Understand Your Complete Picture At Five Pine Wealth Management, we help clients work through these decisions by looking at their complete financial picture. We stress-test different allocation strategies against various market scenarios, coordinate withdrawal strategies with tax planning, and help clients understand the trade-offs between different approaches. If you're within 10 years of retirement and wondering whether your current allocation still makes sense, let's talk. Email us at info@fivepinewealth.com or call 877.333.1015 to schedule a conversation. Frequently Asked Questions (FAQs) Q: What is the rule of thumb for asset allocation by age? A: Traditional rules like "subtract your age from 100" are oversimplified. Your allocation should be based on your guaranteed income sources, spending flexibility, and risk tolerance; not just your age. Q: Should I move my 401(k) to bonds before retirement? A: Not entirely. You still need growth to outpace inflation. Gradually shift toward a balanced allocation (60-80% stocks, depending on your situation) and keep 1-2 years of expenses in stable investments. Q: What's the difference between stocks and bonds in a retirement portfolio?  A: Stocks provide growth potential to keep pace with inflation but come with volatility. Bonds offer stability and income but typically don't grow as much.