is it reasonable to look into DVC at this financial age?

[Lasrnw]

I hate to disagree...but I say buy it now and finance it if you can afford the payments......don't make the mistake that DH and I made buying later in life...everything else came first all these years and vacations last. You need to get away & take a break. Life is short....enjoy it!

 

[lllovell]

As much as I would say my advice is not the most financially sound, if you are in a position to REALLY afford it, then I say go for it.

When you use other people's money (financing, credit card purchases, etc) it ALWAYS cost you more, but in the long run you have to decide if that extra payment is worth it for you. Buying into DVC is not simply a financial decision, it is also an emotional one. If you came from a family that always vacactioned (as I did) then you probably value KNOWING that if nothing else, you can go and really whoop it up at WDW for a week or more a year. Hubby's family NEVER took vacations and it took me several years into our marriage to show him that at least once a year, I am going to spend a week (or more) with my toes in the sand at ST. George Island in Florida and that there will be many other little trips for shorter periods of time built in. Then, last year, HE was the one always wanting to stop at the DVC booths and I was the one pulling him away saying NO WAY - ITS A TIMESHARE! Luckily for me, my brother-in-law's sister is a member, so I was able to talk to someone that was involved without feeling like I was getting the sales pitch and it convinced me to call DVC myself and within 5 days, we were signing up.

Life can kick you in the pants at any time. As many here have said, you need to be prepared for the future and unexpected things happening (savings, low or no debt loads, owning your own house, money for maintenance of vehicles, insurance, medical bills - ANYTHING). I do not disagree with this at ALL. What I do think is that it is a VERY personal decision about being able to afford DVC.

My mother passed away last year from breast cancer at 53. I think my outlook on life has changed dramatically because of it and while I do not spoil my children, my family is going to do things that are magical and I am trying to instill in my children that working hard now and living right DOES have rewards. For me, those rewards are vacations in places that make me VERY happy. WDW is one of those places and while my children are young, it makes perfect sense to me that we will spend a good bit of time in the Orlando area - at least annually. When they start whining that they have seen the mouse enough (IF that happens), then hubby and I will take a trip or two alone at times and we will also trade out for a while and go elsewhere (or rent points...so many possibilities).

I financed our DVC purchase because I like having the choice of where to put my "extra" money every month. I buy cars on credit, but always pay them off early, but by not spending my savings or borrowing against my 401K, I still have all of those options open to me at any time. If something comes up during a month (like right now, we are landscaping the yard AND hubby lost his job back in May, so there is not as much extra cash as I would like laying around), then I have the benefit of making just a minimum payment. After the yard is finished, if nothing else is going in, I can add a significant amount to my payment for that month. Either way, I decide my future and my finances for the month. I also never "finance" more than hubby or I could pay with ONE of our jobs. That way, if something does happen, like hubby losing his job, then I know that my job will take us through without a problem without having to dip into savings.

Life is too short to wait. DVC is different than most things you buy because each year you DON'T purchase, you lose. Waiting DOES have a cost in my opinion. Just make sure no matter what happens, you can afford to make your monthly note payments if something bad happens to you.

Also, we bought 250 points. My monthly note is $230 or so. If I rented my 250 points for a year because money was tight, that minimum $2,500 would just about cover a year's worth of mortgage payments. I know if wouldn't cover the note and my dues, but it is always a possibility that I keep in the back of my mind for emergencies.

Good luck with your decision. I am certainly NOT saying that the previous advice is wrong (not having debt, having a nest egg, owning a house, etc is ALWAYS the best financial advice), it is just that in the case of DVC, it wasn't the best advice for me.

Laura

 

[crisi]

It depends on your financial priorities.

An acquintance of mine has Cystic Fibrosis. Since he never thought he'd live to be 40 (he has - but 60 still doesn't seem reasonable) saving for retirement isn't something he does.

Some people still are lucky and have well funded pensions (although the situtation regarding pension funds of late should give anyone planning on using pensions only to retire the same pause as anyone under 40 thinking Social Security will see them through. We can hope both work out, but I'm sticking money under my mattress). They don't need to save for retirement.

Some people have security in the jobs. They may not need the same cushion as someone who consults for a living.

Some people have very simple lives other than their Disney vacations. They may be able to afford DVC when others are still pulling together their cushion.

Some people don't have kids and never intend to. Others think their kids should pay for their own college.

Some people are risk adverse and want lots of financial security (that's me.) Other people live happily pay check to paycheck. With luck, they won't ever run into the type of setback that starts the bankruptcy spiral. That kind of setback can happen to the well prepared too - the difference is that the person who lives paycheck to paycheck can start it with the transmission going out in the car, the person with cushion needs a long term job loss or serious illness or something - the washing machine needing isn't going to do much harm.

Keep in mind that putting $14,000 (plus interest) means $14,000 you won't be putting somewhere else. That might be a downpayment for a home. That might be a new car a year earlier. It might mean you slash you clothes budget and your grocery budget. For us, that number represents most of the costs of a Korean adoption seven years ago. It is also about the amount we spent to put a sprinkler system in the lawn and landscape. Do I get more enjoyment from my son than DVC - yep. Do I get more enjoyment from DVC than from not having to move the sprinkler around the yard all summer - well, lets say as much as I enjoy Disney I'm not much for lawn work.

 

[lisareniff]

I vote for making sure your retirement is nicely funded first. It is a very boring option, but a little money put it when you are young is HUGE when you are older. Do that now, and conserve stay in Pop while you are young and just a couple. Remember this is just a pre-paid vacation, but one that you are committing to pay for years and years.

 

[kathleena]

Plan for retirement, buying a home and supporting a family first.

Plan for spending thousands of dollars on vacation last.

My opinion.

 

[erikthewise]

I sometimes teach a math course for liberal arts majors, where one of the topics is personal finance. In that chapter there is an exercise that goes something like this:

"Alison deposits $200 a month into an investment account from age 25 to age 35. After that she makes no further deposits. Brian deposits $200 a month into an investment account from age 35 to age 65. Assume that both accounts earn interest at the constant rate of 6% per year. How much will be in each account at age 65?"

The (surprising?) fact is that at an interest rate of 6%, they will both have saved roughly the same amount! (about $200K) For lower interest rates, Brian does better; for higher rates, Alison does better. Who actually "wins" is not really the point -- the point is that each dollar saved when you're 25 contributes a LOT more toward your retirement than a dollar saved when you're 50.

Of course there are also substantial benefits to buying DVC while you're young. I'm not sure it would be a mistake for you to buy DVC; I'd kind of like to see you do that. I AM sure it would be a mistake to buy DVC while saving nothing for your retirement. If you can do both, then go for it! But if buying DVC means no retirement savings, I have to say no.

And of course avoiding credit card debt is even more important. That's another topic in the course, but I've bored you enough already.

 

[GrimGhost]

I tend to disagree with the "wait and save for retirement " folks. Unless you plan on not going on vacation to WDW on a regular basis over the next years, which I suspect, based on your user ID you enjoy what Disney has to offer. If you are going to WDW anyway, I think DVC makes sense.

 

[disneyholic family]

disneyholic family

The minimum buy-in from DVC is 150 points at SSR, which equates to a bit over $14K. Annual dues, on average, are $4 per point, thus for a 150-pt contract, would run you $600 currently, though the dues (maintenance fees, actually) will certainly continue to increase over the years at roughly the inflation rate based on past history. As for paying if you visit, if you mean visiting as a member of DVC on vacation, then the answer is you do not pay anything for your accomodations since that's what the point purchase is all about (so, you are paying just not each time you visit ). You DO pay for food, souvenirs, theme park tickets, and the like.

yes i was talking about additional payments when you come for your annual visit...

thanks for all that information...
a few more questions if i might..

i know the answer to this one varies by season, so for the summer (value season?) how many days in SSR does the 150 minimum points get you? One week?

Also, how much does it typically cost for daily housekeeping services?

Thanks!

 

[pms122765]

I would say it depend on how often you plan on going to WDW.

If you go at least once a year for 1 week, then you will save in the long run, if you can afford the payments. It might be hard to swing a resell without all of the money.

We live in Seattle & told ourselves that our next big family vacations for the next 5+ years will be at WDW, so we plunked down the $& bought in. No regrets yet & we have been back 3 times on points & will be going back in October.

Bought the AP's & even scooped up 4 free airline tickets by giving up our seats. No real cost for the next trip. Ourt biggest cost is the airline fare which runs $1200-$1600 for the family of 4. Would be nice to live closer, but then we might not appreciate it as much.

One thing is for sure, you will never see us there in summer. That is the only time Seattle has any good weather.

I do not know how everyone can survive at WDW in summer, I grew up in Sacramento, where it can reach 108, but dry heat. I can take that, but not 93 & 95 humidity.

People here in Seattle melt went it gets over 80

Sleepy in Seattle

 

[LuluLovesDisney]

To answer some questions
I have a 403 B that a chunk of each paycheck goes into (the "teacher" equiz of a 401 k)
In my family, they look down upon women moving out until married/engaged at the least, so I have been able to save a lot of money by living at home.
I have a pension at work, and reasonable job security.
I will be *completely* debt free in 2 weeks when I make my final last 300 dollar payment!
I intend on going to Disney pretty much every year or at least every other year for the rest of my life.
I have been getting *lots* of great information. Although people have disagreed on some things, I've been given some great things to think about. I appreciate all the help very much.

 

[chrissyk]

Do you have a M.Ed. yet? If not, are you planning to get one? Isn't NJ one of the states that has Masters and Masters Plus tracks/payscales? You could REALLY jump your pay by advancing your education/credits. I'd put my free cash towards getting a M.Ed. and/or taking as many additional Masters Plus courses as I could. My mother jumped her pay a TON by getting to the top of her payscale as quickly as possible. You can always buy into DVC after you reach M+60 or M+75 or whatever your district offers.

Try to do this BEFORE you have kids, because it will be easier and you will benefit sooooo much from it later on. My mother has a friend who isn't even at M+30 yet because she had kids and "never got around to it". She's passing up so much salary every year because my mother's district goes up to M+75! DVC will be there for a long time. Invest in your career right now and get your Masters and then as many plus credits as you can as fast as you can!