How many points to buy?

[mogulskr]

I know this depends on a lot, but my question is:

If I need 180 points every year could I get by with buying 150 points and just borrowing 30 points each year. I realize 49 years from now I will only have 120 points for that year, but I'm not real concerned about that now.


Thanks

 

[spiceycat]

I would buy the minimum if that is what your budget allows.

You make find other places (like OKW) to stay that aren't as expensive....

you can add on when you are in better shape financially.

oh your numbers are wrong - you are borrowing 30 points each year - so in 2007 - you would have 120 so you would need to borrow 60 point from 2008 - then in 2008 you would have 90 points so you would need to borrow 90 points, in 2009 you would have 60 points so you would need to borrow 120 points.... in 2010 you would have 30 points so you would need to borrow 150 points.

so in 2011 you would have borrow all your points - so don't plan on going.

then in 2012 you can start again.

 

[calypso*a*go-go]

Good job Spicey...I was going to point out the math error as well.

I would say if you know you need 180 pts each year, and plan on going each year...then try to get 180 pts upfront. Doing so later will just cost more money as the price per point will increase. If you end up not going one year, you can always bank the points or rent them out.

 

[mogulskr]

Thanks for the info and the correction. The 180 was just an example. I believe the number is more like 160. I was also thinking of doing this with the 150 from 2005 that I would get for the SSR promotion and just keep banking what ever was left each year.

If that was the case I should be able to borrow 10 points a year for 30 years right?

 

[MikeSquared]

Borrowing will not last 30 years, only 15. You will have no points available in the 16th year and could only borrow 150 from the 17th. Here's an example;

1st year 150 + borrow 10 from next year = 160
2nd year 150 - 10 borrowed from last year + borrow 20 from next year = 160
3rd year 150 - 20 = 130 + 30 =160
4th year 150 - 30 = 120 + 40 = 160
5th year 150 - 40 = 130 + 50 = 160
...
14th year 150 - 130 = 20 + 140 = 160
15th year 150 - 140 = 10 + 150 = 160
16th year 150 - 150 = 0 + 150 = 150 not enough this year

 

[mogulskr]

But I would start with 300 right? 150 from 2005 and 150 from 2006? ahh screw it I'll just buy the 160. Thanks

 

[MrShiny]

Actually, I think that way you run out of banked points in 2020. You bank 140 the first year (use the 150 from '05, and 10 of the '06), 130 the next, 120 in 2008 and so on.

If your vacation schedule is the same each year, then this works well. But since banking has a definite deadline, you have to really plan for it and pay attention.

The most flexibility of course is buying exactly how many points you think you'll need. Of course if you forsee your vacation habits changing (e.g. going less when kids grow), then that might not be the best. Of course then there are the other non-Disney options, which generally cost a little more point wise, so that could be a wash.

What I would do is make a vacation plan for the next 10 years. Buy the points that will get you through that. Remember borrowing is a bit easier than banking, as you don't have to remember any deadlines!

 

[LisaS]

Actually, I think that way you run out of banked points in 2020. You bank 140 the first year (use the 150 from '05, and 10 of the '06), 130 the next, 120 in 2008 and so on.

If your vacation schedule is the same each year, then this works well. But since banking has a definite deadline, you have to really plan for it and pay attention.

I just created a little spreadsheet and got the same result. So this scheme works well for 15 years. Then you have to stay home in 2021 and bank all 150 points from that year into 2022 and then you're good to go for another 15 years (until 2036) when you again must take a year off.

 

[rogerram]

If you need 160 every year and can afford it, Why would you want to deal with the hassle of always borrowing ahead. I would go with the 160. That number is also the number of points for a 1 bedroom exchange, I believe. 270 for a 2 bedroom. In theory you can go every year to any exchange in a 1 bedroom, if you wanted to. The extra 10 points might come in handy.

P.S. I will have my DD look at all your math work here. She might learn someting for school.
Roger

 

[LisaS]

If you need 160 every year and can afford it, Why would you want to deal with the hassle of always borrowing ahead. I would go with the 160. That number is also the number of points for a 1 bedroom exchange, I believe. 270 for a 2 bedroom. In theory you can go every year to any exchange in a 1 bedroom, if you wanted to. The extra 10 points might come in handy.

P.S. I will have my DD look at all your math work here. She might learn someting for school.
Roger

I wouldn't want to follow this borrowing scheme either but joined in the discussion because I can't resist a math problem.

I would look out a couple of years at the trips I expected to take and the type of accommodations I wanted to book, figure out the annual points required to make it work and buy that number of points. I can't seeing buying 10 fewer points than required because the price difference isn't significant so why do it?

 

[yitbos96bb]

Thanks for the info and the correction. The 180 was just an example. I believe the number is more like 160. I was also thinking of doing this with the 150 from 2005 that I would get for the SSR promotion and just keep banking what ever was left each year.

If that was the case I should be able to borrow 10 points a year for 30 years right?

If you can afford the extra, I would definately do 160... then if you DO want to trade with Interval you have that option.