Factoring in DVC for retirement

[tjcj]

So we just paid off one of our contracts and have started thinking if we have all the points we need (yes I have the addon bug).

My thoughts are that we would want to factor in DVC to our retirement plans and since I will be working for about another 10 years or so and we should buy the points we would need now to have everything paid off.

I have been thinking about 12-20 days in a 1brm factored into going down to Fla for baseball spring training as well as some beach time. Does anyone do something similar?

So how do folks currently factor in DVC into your vacation/retirement plans?

Is anyone that is still working thinking along the same lines?

 

[littlestar]

Yes. Our thinking is we would like to spend January, February and part of March in Orlando.

We will use the DVC points for when our kids come in to visit us for a week.

We also own other timeshares that give us individual memberships in RCI and Interval International and we plan on using a combination of trades, cash Getaways, and Last Calls (RCI) for our winter stays. Of course, the cash Getaways will be in some of Orlando's great non-Disney timeshares.

 

[lbdpw1285]

i plan to retire in 4 years.
planning to go to DVC for as long as points hold out.

hopefully jan, feb, part of march at OKW in studio.

wife & I feel it is about the same financially as buying a condo in a nice gated community (like OKW), but without the ownership headaches when off-site.

 

[Cruelladeville]

I retired two years ago. I use my 3 Marriott weeks and 600 pts to spend time down in Orlando during the winter. Right now I go for two weeks in December, go home to check on things, go down in February to the middle of March, and go home again. I loved spending the winter down there, but I worried about my house, and what was going on at home, so we are going to break things up differently next year. I am trying to decide if I want to sell a contract and just rent a condo where I can keep my cat. Right now she stays home, and I pay someone to check on her when I am in Florida.

 

[gobofraggle]

buy now to have everything paid off in 10 years?

I wouldn't finance DVC, if that's what you mean. I'd save my money for 10 years and then buy.

 

[pickles]

buy now to have everything paid off in 10 years?

I wouldn't finance DVC, if that's what you mean. I'd save my money for 10 years and then buy.

One would have to consider in 10 years DVC will go up in price, so your savings may not be what you are thinking when you factor in finance cost loss vs price increase

 

[gobofraggle]

One would have to consider in 10 years DVC will go up in price, so your savings may not be what you are thinking when you factor in finance cost loss vs price increase

No, I think my savings would be what I am thinking: I was not assuming that DVC would not go up in price.

If you finance, you have the cost of loan interest over that period + the 'opportunity cost' in terms of lost compounding savings interest as you save money year on year [i.e. the 'double whammy' of interest on both sides - interest lost and interest paid] + annual dues for the next 10 years and the associated 'opportunity cost' loss of compounding interest on that dues money etc.

Yes, you get the use of the points during that ten years... but... at a hefty price.

The vast majority of people don't fully grasp the power of compounding interest - on savings or debts - and don't factor in the 'opportunity cost' of spent money. Even I don't fully grasp it at all times when making financial decisions, and I really try to.

 

[MdmMim]

I spend about 4 weeks at WDW in the winter, arriving after New Year's. I would stay longer, but I need to go there in October for a few weeks and the first part of December, too. Can't have it all, I guess.

DH is not yet retired, but we often talk about staying at FW in our camper, then moving into a DVC room, seeing how far we can stretch those points.

 

[gobofraggle]

my parents once stretched the points out for a long time by moving out to a cheap-and-clean local hotel at weekends - with the two weekend nights costing the same amount of points as 5 weekdays - they doubled their length of stay... I think this would drive me nuts though, having to keep packing and unpacking.

 

[Sully]

We now have 935 points. The last 2 years we have spent the entire month of Feb. in a studio at SSR. We then move on to VB for a week in an IR. We are able to make a couple of other trips to WDW or HHI during the year. We always stay in a studio or inn room to maximize our points. We do a lot of our cooking in the studio. We sometimes call it indoor camping but we are in warmer weather.

 

[tjcj]

buy now to have everything paid off in 10 years?

I wouldn't finance DVC, if that's what you mean. I'd save my money for 10 years and then buy.

What we are considering buying additional points now and paying off in about 3 years or so.

 

[tjcj]

I spend about 4 weeks at WDW in the winter, arriving after New Year's. I would stay longer, but I need to go there in October for a few weeks and the first part of December, too. Can't have it all, I guess.

DH is not yet retired, but we often talk about staying at FW in our camper, then moving into a DVC room, seeing how far we can stretch those points.

I am thinking about this as well, mixing in time in a camper at FW and DVC. The main issue is getting the DW to agree to the whole RV thing.

 

[gobofraggle]

If a bunch of us end up spending month(s) each year in DVC when retired - it might be nice to set up some kind of group email list (or sub-sub-forum on disboards) for long-term 'residents'... I'm not one for 'enforced' group activities or anything like that, but I can imagine there might be occasions when it could be fun or useful to know of other long-term neighbours among the people staying a few nights each.

This is years away for us...but fun to think about.