Over the many years that we’ve been building financial plans for our clients, we’ve noticed that travel is a very common goal in retirement. And it makes sense – after decades of work with limited time off, you finally have the opportunity to visit places and do things you’d planned to.
Depending on how old you are, you may remember that if you were planning a trip abroad, you converted US dollars to foreign currency, or bought traveler’s checks. Today, most everyone pays by credit card.
There are literally thousands of different credit cards available today, and so it’s no surprise that the cost and benefits can vary significantly between them. A primary differentiator is “annual fee” versus “no fee” cards. However, within each of these categories there can still be significant differences.
We’ve highlighted below examples of the two types of cards, which you can compare with the cost and features of your current card(s):
Annual Fee Card:
Some of the best credit cards for travel have an annual fee, but come with perks that can more than offset that annual cost. One example is the Chase Sapphire Reserve card, which has an annual fee of $450. This card offers:
- A $300 annual travel credit
- Priority Pass Lounge access (access to over 1,200 lounges – and many restaurants – at airports around the globe), with guest access included at some locations
- A credit for Global Entry or TSA Precheck is included
- For personal travel, rental car insurance is primary rather than secondary
- Up to $10,000 in coverage of non-refundable expenses in the event of an emergency trip cancellation or delay
- Triple points on travel spending, which may be used for partner airline or hotel loyalty programs
- No foreign transaction fees
- A $100 statement credit for TSA Precheck
- Online travel purchases at the website hotels.com/venture earn 10x points
- Insurance coverage for rental cars is secondary
- Extended warranty protection is available on some purchases with warranties of three years or less
- Points exchanged with partner hotels and airlines can exceed their statement credit value
- No foreign transaction fees