Factoring DVC into retirement

[tjcj]

I wanted to restart the conversation about how DVC factors into current and future retirement plans.
For us it's a constant conversation-
Purchase more points now to use later in life, invest more in our retirement funds, purchase a vacation property.....
How often and for how long will we want to visit WDW, Aluani, Vero....
How will we travel in the future (trains,planes,automobiles)...
What's the future for DVC....
Looking forward to hearing others thoughts

 

[SusieBea]

I wanted to restart the conversation about how DVC factors into current and future retirement plans.
For us it's a constant conversation-
Purchase more points now to use later in life, invest more in our retirement funds, purchase a vacation property.....
How often and for how long will we want to visit WDW, Aluani, Vero....
How will we travel in the future (trains,planes,automobiles)...
What's the future for DVC....
Looking forward to hearing others thoughts

When we bought DVC 19 years ago, my DH asked if we could spend the month of January at WDW after retirement. We couldn't have then (plus now he has to have a one bedroom - no studios!); we've added points and could now. But I'd rather use them to bring our kids and DGC down and spend that time together. After we made a couple of trips to the DVC at Hilton Head, we decided to buy a little vacation home there. It's a 5 hour drive from there to WDW - that worked out well; hmmmm! But as we are learning, retirement plans are fluid. That's the plan for now, but we'll see how it flows.

 

[tjcj]

When we bought DVC 19 years ago, my DH asked if we could spend the month of January at WDW after retirement. We couldn't have then (plus now he has to have a one bedroom - no studios!); we've added points and could now. But I'd rather use them to bring our kids and DGC down and spend that time together. After we made a couple of trips to the DVC at Hilton Head, we decided to buy a little vacation home there. It's a 5 hour drive from there to WDW - that worked out well; hmmmm! But as we are learning, retirement plans are fluid. That's the plan for now, but we'll see how it flows.

Thanks. If you don't mind me asking what led to the decision to buy a place in hiltonhead? Is it something you rent out when not using?

 

[SusieBea]

Thanks. If you don't mind me asking what led to the decision to buy a place in hiltonhead? Is it something you rent out when not using?

I don't mind at all. We had never been to HHI until Disney built the resort there. We went a few times, enjoyed the Island so much that we decided we wanted our own place there. Our points are all at OKW so we didn't have the 11 month advantage. We did rent it out the first year we owned it. It's a townhome in Sea Pines. But every time we went down that year, we were spending our time fixing things that renters were careless with. So we took it off the rental market. Now only family and close friends use it. We've owned it 9 1/2 years. It was a good decision for our situation. Oh, and I no longer work, but my DH is still employed full time.

 

[RobDoc]

We have a situation similar to SusieBea (except that she did what we should have done several years earlier).

We also purchased DVC 19 years ago and over the next 5 years added on enough points to stay at WDW for almost 2 months in the winter in a 1BR. We also purchased points at HH and about 6 years ago decided that we really wanted to spend more time there - so we purchased 2 quartershares, giving us 26 weeks there in addition to our HH points. Realizing that 26+ weeks just would not be enough and with the recent buyers market, we found a condo that we couldn't turn down. Whlile we will still be traveling to WDW several times each year, the trips there will be shorter stays (3-4 nights instead of 10-11 nights) as well as family trips to both WDW and HH. We have found that our focus has changed a bit over the years and we truly love the atmosphere at HH as much or more than WDW.

As Susie noted, the 5 hour trip to WDW is pretty easy to make. We will be enjoying the best of the retiremtent plans made years ago and revised over the last few years.

 

[Cap]

When we first purchased DVC we were living and working in Michigan. Going to Florida was great for vacation. We used points to stay at DVC Hilton Head one time and liked it so much we went every autumn. That forced us to buy a resale HH contract.

Since then we have retired and moved to Mount Dora, FL, about 40 miles from DVC. We continue to use our points at HH, and have purchased yet another HH resale contract. Our first set of DVC points are used for DVC Vero Beach and for our married children.

It is something we want to remain flexible about. If the annual dues for the FL DVC points get too high versus the value we're getting out of them, we'll sell those contracts. Right now it is difficult, both jobwise and financially for our kids to get a week planned far out enough to allow us to book DVC at the times they would really want to visit.

With DVC, the capital amount involved is small enough versus a house that I don't think it needs a lot of time worrying about using it years in advance.

 

[Dean]

I wanted to restart the conversation about how DVC factors into current and future retirement plans.
For us it's a constant conversation-
Purchase more points now to use later in life, invest more in our retirement funds, purchase a vacation property.....
How often and for how long will we want to visit WDW, Aluani, Vero....
How will we travel in the future (trains,planes,automobiles)...
What's the future for DVC....
Looking forward to hearing others thoughts

I do not think it wise to add on now for long term options unless you want to go into the rental business. I'd just invest the money and buy later if DVC still fits your needs. You might tire of DVC, it might have changed in a way that's negative and you've already missed the resale train getting full benefits, not that they were of much value, it's just that the differences may change.

 

[Sammie]

Have to agree with Dean.

For me personally DVC is too unreliable for a retirement situation. I foresee more changes in the future that could possibly make it less desirable for us and I personally would not want to be locked into it.

Also agree with Doc, as we age we find HHI to be more enjoyable for longer periods of time than Disney.

 

[dclfun]

I would not buy more points now. I doubt the value/price will go up as instead we've seen a downward spiral in the value of resales lately. Using myself as an example, we had 450 points, 150 at OKW, 200 at AKV, and 100 at VGC. I had thought about buying more so that my four kids could divide and share them eventually. I wanted each of them to have at least 150. I found out this past Aug. that I have stage 4 colon cancer which is incurable, and I don't have much time. My kids don't want the contracts anymore. They just aren't at the point in their lives that they want to pay the dues and/or travel to WDW that often. Sooo, I sold my VGC contract right away but the AKV one isn't moving. We decided the kids would keep the OKW contract and share it afterall as one dd really wanted to remain a DVC member. I'm so glad I didn't buy more points. We've enjoyed the ones we had over the years and have gotten our money's worth but now it's a burden to try and sell one while being so ill and having other priorities, and also having now to pay quite a bit, IMO, to change the names on the deeds before I'm gone.

If I were you I'd just invest more in my retirement account. That's money you can use for anything and none of us knows what obstacles life may throw in our path. What feels comfortable now may not be so down the road and with more available funds you are much more protected from adversity. If it turns out that later you still want more points, they aren't going anywhere.

 

[spleen]

I found out this past Aug. that I have stage 4 colon cancer which is incurable, and I don't have much time. (...)

If I were you I'd just invest more in my retirement account. That's money you can use for anything and none of us knows what obstacles life may throw in our path. What feels comfortable now may not be so down the road and with more available funds you are much more protected from adversity. If it turns out that later you still want more points, they aren't going anywhere.

So sorry to hear - thoughts are with you and your family.

And I agree completely about the retirement plans - cash is king and you can always buy more DVC points if you need them.

 

[bobbiwoz]

My thoughts and prayers are for you dclfun.

I had 29 DVC nights this winter and it has been amazing. DH will be doing something like that with me once he retires. Our DS and his family have moved to Florida, and they have accommodations that will help us stay even longer and we'll be hosting them over the weekends in WDW as long as the DGCs are interested in going there.

Our first retirement home will most likely be in Tennessee, we've both come to love the Smoky Mountains area, and we'll be in Florida for much of January and February, and we hope our health allows us to do things like that for a few years.

Bobbi

 

[WolfpackFan]

Our DVC ownership has made it possible for us to take at least two good trips each year - one to WDW and one to HHI. For us, retirement has been a little tighter money wise than I had anticipated. It seems like every time I turn around we have one big expense after another (just dropped $8000 on a new furnace). So I am really happy we bought our contracts when we did. I just hope we both keep healthy, so we can continue to go to WDW as long as we can. I do see a point in our future, when we will reduce or eliminate the WDW trips and just go to HHI, just because it is a lot easier for us to get there plus it doesn't take the walking, etc. that WDW requires. We are both in our low to mid 60's and hopefully we can keep going on these trips for 15-20 more years. After that I guess we'll just turn over our points to DD32 (DS has no interest in WDW at all) to use until they expire.

Like someone posted it was also always my plan to spend a good part of January at WDW (we would have to do a Studio) but it turns out DW and myself are both concerned about leaving the house for that extended period of time. We have a kitty we have to take care of and don't like to leave her for more than a week or so, plus there is concerns about pipes freezing, etc. Plus to do this it would take all the points we have, which would cut out our yearly HHI trip. So I guess taking the whole month of January at WDW won't ever happen.

Someone mentioned about buying a place at HHI. Now that is one thing I would love to do. Actually, what we'd love to do is buy a place at Sun City and just move there. Everytime we go to HHI, DW and myself discuss how that would be the perfect place to live. Easy drive to WDW. DW loves the beach. I love to play golf. It would be perfect. BUT it is very hard to do. We live close to both DS and DD (neither married) and unfortunately it seems like we spend an awful lot of time having to do things for them in one fashion or another. I keep thinking to myself shouldn't it be the other way around? But it is just a fact. But I would move to Sun City in a heartbeat if we could do it financially and didn't have to worry about DS and DD.

 

[a742246]

I wanted to restart the conversation about how DVC factors into current and future retirement plans.
For us it's a constant conversation-
Purchase more points now to use later in life, invest more in our retirement funds, purchase a vacation property.....
How often and for how long will we want to visit WDW, Aluani, Vero....
How will we travel in the future (trains,planes,automobiles)...
What's the future for DVC....
Looking forward to hearing others thoughts

I am in the same boat as you with these questions. We have about 10 more years till retirement (semi). As of now, our plans are to build our DVC total to between 300-400 points shortly (we have 210 now).

Then we are up in the air. There are so many variables that will figure in, that things can change from year to year. I would love a vacation house but
I don't want the hassles of the upkeep. From what I see, the costs and expenses of a vacation house will probably exceed a 2 months stay in a one bedroom at WDW on an annually basis (I would rather be in a WDW setting).
Right now, we will probably save alittle more towards retirement. But our next big change will be when we begin to downsize, when we are in that stage
we will look deeper into vacation homes vs more DVC points vs whatever.

One thing for sure though, I want to live life. I seen too many people save for retirement and do nothing once they retire, alot of them become either cheap, lazy, or cynical. That's not going to be us.

 

[chainkid]

I have 630 points mostly at BWV and have owned them for about 12years. When I bought I felt I would use this as my winter retreat when i retired. Well I'm going on 62 and luckily I still have a good paying job with a fairly stable company as does my husband. since the stock market crash of 1998 I no longer can plan to retire and lead the lifestyle I currently do so having the disney points allows me the flexibility to either take several shorter vacations or stay a couple months. I have no desire to move south or maintain the burden of another home. I live near my family here and the thought of living apart is not for me. I have lived part of the year for work right on the beach and after the thrill wears off its a very boring lifestyle. I still could sell BWV for the same as i paid for it so not out the money for sure.

I'm glad my job took me out of the country with my husband for months on end in a beach resort or i might have been tempted to spend my savings on a home away from home there. Everyone is different but I love my home and my friends and I love to travel but traveling can be isolating when it involves months away. DVC has been my guilty pleasure and one that has given my family endless joy. I hope to use it wisely and keep working the job i love until i am no longer able. Being retired holds little appeal to me if it means i can't do what i want . Now when i'm 70, i may feel differently but i still like the freedom of not owning another home to maintain

 

[Inkmahm]

We have about 650 points and I hope to use those for staying at WDW during winter months after retirement. Our issue though is the pets. I'm really hoping that the rumor of a DVC being built eventually that will allow pets is true. Leaving pets behind for a month at a time just isn't something I'm willing to do. I miss them now after being away for just a week!

 

[a742246]

We have about 650 points and I hope to use those for staying at WDW during winter months after retirement. Our issue though is the pets. I'm really hoping that the rumor of a DVC being built eventually that will allow pets is true. Leaving pets behind for a month at a time just isn't something I'm willing to do. I miss them now after being away for just a week!

I know what you are talking about with pets. That is one of my worries, too.

 

[bwvBound]

Our issue though is the pets. I'm really hoping that the rumor of a DVC being built eventually that will allow pets is true. Leaving pets behind for a month at a time just isn't something I'm willing to do. I miss them now after being away for just a week!

I hear you there! Our pets became a significant factor in favor of buying our vacation home 6 years ago. I *love* being able take them with us for the weekend getaways!

Of course, the vacation home has attracted its own pets:

• One feral cat that chose to adopt us
• One "drop off" cat that we found on our porch with its own bowl and bag of food
• Two horses boarded near the vacation home
• ... and countless wild birds that enjoy our many bird feeders

Hmmm, maybe the bird feeders also attracted that first feral cat ...

OP: DVC doesn't particularly factor into our retirement plans. More than likely, we'll not retire but keep working right up until we die. (Assuming genetics carries on in a somewhat direct fashion ...)

 

[joksten2000]

I retired 9 years ago and DW retired 5 years ago. We have a 1,000 points and purchased them with the idea of taking the family on a DCL cruise every year. The points going up so much we now can only squeeze a cruise every other year. Then we thought we could stay at the parks for a couple of months and use the points that way. We got very lucky and were able to rent a beautiful home 9 miles from WDW for $6K for the winter (Jan 6th thru April 30th) 4 bedrooms & pool. We even thought of buying a home as prices are way down, but have decided it's cheaper to rent. Never thought I'd say this but we're seriously thinking of selling most of the points. We buy AP's and really don't see any advantage to keep the points. Between the rental home and the AP's we've really got the best solution for us. We bought in 2000 and it has more than paid for itself. The kids come down for a week each. We'd probably buy if the grandkids were older, right now their 5 & 2.5 and need their grandparents to spoil them

 

[DVC-Don]

Our original plan was to have enough points to spend January at OKW in a 1 bedroom. Over the years we accumulated enought points to do that, but in mid 2010 we took a trip to visit some central Florida communities. Well, with the housing value crash we found that buying a second home was very affordable and did purchase a home about 20 miles from WDW. We bought a 2 bedroom/2 bath/2 car garage/7 year old home in a beautiful gated community for $90,000 and found out we have some wonderful new neighbors. So, last winter we sold off all but one OKW contract that'll get us a 2 bedroom at OKW for about a week in January. The rest of the time we make frequent day trips to WDW and other attractions in the area. I retire in 2 years, but still manage to spend about 1 week per winter month at our Florida home.

 

[icydog]

I do not think it wise to add on now for long term options unless you want to go into the rental business. I'd just invest the money and buy later if DVC still fits your needs. You might tire of DVC, it might have changed in a way that's negative and you've already missed the resale train getting full benefits, not that they were of much value, it's just that the differences may change.

Dean, the rental business you mentioned doesn't really exist anymore. The websites that I used to use are littered with RCI exchanges for prices I could not afford to try to match. When a two bedroom BCV is listed for $1500 for 7
Nights... Well you get the idea.

The first thing you need in retirement is security. The last thing you should have is something you don't need. I agree to wait until your plans are more settled before buying more points. BUT if the OP has enough discretionary cash then DVC is sure a fun product to own, especially purchased on the resale market.