Editor’s note: Bryce Sanders is a longtime columnist with Rethinking65. To read more of his articles, click here.
Bryce Sanders
Do you have clients who are world travelers? They are always heading off or returning from somewhere. Constant travel gives your retired client conversational topics that never run out. But could it be a red flag?
In some countries, your tax status changes if you are offshore for six months and one day. My wife and I have met foreigners who step off a 100-day world cruise, stay ashore a few days and board another ship, bound for another destination. But Americans who do that will not become tax exiles — exempt from U.S. taxation. In any case, we are considering normal retired clients who just happen to always be away at sea.
When Frequent Travel Makes Sense
There are reasons why this can make good sense. Just don’t find yourself needing medical care while in international waters, far from the shore where Medicare stops. Let’s consider the good reasons why some clients cruise constantly.
1. Cruising Can Be A Good Value
Your client is cheap. OK, let’s call them thrifty. If they shop “sailing soon savings” on many cruise consolidation websites, they might be getting away for as little as $48 per day per person. Since this includes room and board, it might be cheaper than staying home. As an example, on Aug. 5, VacationsToGo.com showed a 14-night transatlantic cruise on the Celebrity Constellation departing Barcelona on Nov. 7 and arriving in Tampa on Nov. 21. It was priced at $672 per person for an inside cabin. That’s $48 a day! They are making good use of their money and happy they found a bargain.
Your client toiled nonstop during their career. They never took a vacation. They “postponed pleasure” until retirement. Now they are catching up, doing everything they always dreamed of doing. They worked hard, they should enjoy their retirement — assuming they can afford it.
3. Cash vs. Time
We know people who take a world cruise every year. They are away 100-plus days on that voyage alone. They book a modest cabin that may run $17,000 per person. Others onboard stay in lavish suites that start at $52,000 per person! Why would a couple spend $100,000-plus on a vacation? They explained some people look at one hand and consider the number of years they have left on Earth. They look at the other hand and see the money they have in the bank. The second hand holds much more than the first. They are enjoying their money. This is another example of people choosing to enjoy their money.
4. Travel While You Still Can
Your older client is in good physical shape for their age. They don’t have problems walking or climbing steps. They realize physical problems develop as they get older. They make a conscious decision to travel while they still have their mobility. It is best to travel while you are still physically able.
5. They Can’t Stand Cold Weather
As we get older, we are less and less comfortable in cold weather. There are medical reasons. Instead of enduring cold winters, they head for a warmer climate. Some clients head to Florida. Others head to sea. Cruising might be cheaper than buying a house in Florida.
6. Bring the Family Together
We discovered this on a Christmas cruise. Some wealthy grandparents bankroll a vacation for the entire family over the holidays. This serves as a family reunion and becomes a tradition they hope the next generation will continue. The promise of a free family vacation brings everyone together.
7. Your Client is Looking for Love
It has been said people who lose their spouse after loving relationship view marriage favorably and seek new relationships. Since cruise lines have personalities targeting certain demographics, they sail with a cruise line filled with people of similar ages and interests. Looking for love can be a good thing.
When Constant Travel Signals a Bigger Problem
If your client can afford to keep on cruising, shouldn’t you be happy for them? They can choose to spend their money any way they want. They can afford to travel, so why should you be concerned? Here are some reasons.
1. They Seek Distraction Because Their Partner Died
Women tend to live longer than men. Regardless of who dies first, if they had a loving relationship, they miss their partner. Assuming they have chosen to keep living in their family home, the house can seem like a museum to the departed spouse. They take cruises because they want a distraction from the loss of their loved one. Can you help by providing more distractions at home for your client?
2. They Are Uncomfortable Living at Home
They have remained in their family home. They are getting older. Your client has difficulty with stairs. They live alone. They lose interest in cooking for themselves. Your client takes cruises because everything is on one level and your meals are served to you every day. Should your client consider downsizing or moving to an apartment in a retirement community?
3. They Lost Touch With Their Family
Their children work on opposite sides of the country. They have demanding jobs and young families. Your client sees and hears from their children less and less. They are lonely, so they go away on cruises to be around people. Do you have accounts for the next generation? Does the family come to visit the client over the holidays? Perhaps you could suggest the family bonds could be tighter.
4. Their Friends Have All Died
Your client has outlived their peer group. Everyone is either infirm or has passed away. If they visit with friends, they are driving up to a nursing home or a hospital. It is grim. They are lonely. They take cruises to be around other people. Is there a senior center or special interest club in the area? Can you prompt them to get involved?
5. They Are Bored
They do the same thing every day. They rarely leave the house. They have a routine. Their children don’t visit. Perhaps a relative calls regularly to confirm they are alive. They have few interests. They choose to cruise. Cruising is not such a bad idea, but they can address boredom by getting out, possibly to a community center or getting active with their religious organization.
6. They Are Unhappy Living at Home
Their apartment is small. Perhaps they they live in a rent-controlled apartment that’s a great bargain and moving to a bigger place would be very expensive. They cruise because if they are going to live in a small space, at least the view changes every day. They might not plan on moving, but they could spend some money updating their apartment. They might like it better with a fresh look.
7. They Cannot Stand Their Relatives
Perhaps there is dissent in the family. Maybe your client has a toxic personality. For whatever reason, people avoid them. They take cruises to see fresh faces. This could be a complex problem involving avoidance. Should they see a therapist? Is this a conversation better initiated by a sibling or other family member?
Clients can have reasons for never being home, but not all reasons are good.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” is available on Amazon.
