4. Keep an Eye on International Vaccine Policies
Earlier this year financial market surveys showed 1 in 5 respondents said they want to travel internationally in 2021. If that includes you, there may be an opportunity to travel more easily to certain countries once you are vaccinated. Iceland, for instance, has announced that travelers who are citizens of the European Union can skip testing and quarantine upon entry when they show proof of COVID-19 vaccination. More countries may follow suit.
Also, in your travel budget make sure you have not only budgeted “emergency funds, but also emergency time”. If you get delayed in a certain country due to Covid guidelines you want to make sure you have extra funds and time to weather the delay.
5. Use Credit Card Points, Miles and Cash Back
Travel rewards credit cards added lots of new ways to redeem rewards in 2020, since cardholders did not have the option to use points and miles for travel. That means you might have been tempted to redeem points via other methods in the past year. However, you can get a great deal on travel by using those points to book flights and hotels now. .
But as you look toward traveling again, shore up those points and consider how best to use them. Imagine your ideal lifestyle vacation and consider how your points can contribute to it. If you plan to stay in an Airbnb, book your flight using points; or, if flights will be particularly cheap to your destination, transfer your points to a hotel partner instead.
Certain credit cards flexible points transfers could come in handy now that future travel plans are uncertain. For example, you can transfer the points you earn by making purchases with the Capital One Venture Rewards Credit Card for to 10-plus flights and hotel loyalty rewards programs. That means your rewards will not lock you into a specific airline or hotel chain that might not work for what you have planned.
Or you may decide that it is too complex to consider how best to use travel rewards. In that case, a cash back card may be worthwhile as a post-COVID travel savings strategy. Get cash back on purchases, then transfer that money to your travel-specific bank account if your credit card issuer allows it.
6. Get Travel Insurance
In the past I have not always been a big advocate of travel insurance, based on the type of insurance you may have already, but as a Financial Advisor and with Covid throwing us all a “curveball” there are new travel insurance policies that have been created to respond to COVID-19, so investigate travel insurance when you are going to be away from home. In particular, look for policies that offer trip cancellation coverage—a good policy might cover 100% of your trip if it’s
canceled due to coronavirus or 75% if it’s canceled for some other reason. Insurance should also cover unexpected medical expenses on your trip, especially, if you are doing something active, like rock climbing, hiking, etc.
So FLM family, it’s really cool to be back traveling and enjoying being “out and about”, safely. I hope these quick tips can help boost your travel plans for summer, fall and end of year 2021. I’m sure to have more ideas as the year goes on. Stayed tuned and travel safely.
For more financial lifestyle tips contact: Richard Chew - 312-952-8040/Cell 312-243-3907/Office [email protected]
www.1stcig.com.