So how much to pay off all of the annual dues forever?

[Tigger031266]

One of you finance guru's help. So I have 300 DVC points with avg dues of $5.50 pp now. So that is about $1650 per year. So if I put 41K at 4% in the bank would that cover it? Given the fact that I would use a little of the principle every year and wind up with nothing and dues would go it.

 

[Caskbill]

Where did you ever come up with your average dues are currently $5.50/point?

 

[Horace Horsecollar]

You need to account for the fact that dues will go up with inflation, because dues represent actual costs plus a property management fee (profit) percentage for Disney.

Using your $5.50 per point as a starting point for 2007, and a 3% inflation rate, here's how the dues per point would look between now and 2054:

Year Dues per point
2007 $5.50
2008 $5.67
2009 $5.83
2010 $6.01
2011 $6.19
2012 $6.38
2013 $6.57
2014 $6.76
2015 $6.97
2016 $7.18
2017 $7.39
2018 $7.61
2019 $7.84
2020 $8.08
2021 $8.32
2022 $8.57
2023 $8.83
2024 $9.09
2025 $9.36
2026 $9.64
2027 $9.93
2028 $10.23
2029 $10.54
2030 $10.85
2031 $11.18
2032 $11.52
2033 $11.86
2034 $12.22
2035 $12.58
2036 $12.96
2037 $13.35
2038 $13.75
2039 $14.16
2040 $14.59
2041 $15.03
2042 $15.48
2043 $15.94
2044 $16.42
2045 $16.91
2046 $17.42
2047 $17.94
2048 $18.48
2049 $19.03
2050 $19.60
2051 $20.19
2052 $20.80
2053 $21.42
2054 $22.07

Using your $5.50 per point as a starting point for 2007, and a 5% inflation rate, here's how the dues per point would look between now and 2054:

Year Dues per point
2007 $5.50
2008 $5.78
2009 $6.06
2010 $6.37
2011 $6.69
2012 $7.02
2013 $7.37
2014 $7.74
2015 $8.13
2016 $8.53
2017 $8.96
2018 $9.41
2019 $9.88
2020 $10.37
2021 $10.89
2022 $11.43
2023 $12.01
2024 $12.61
2025 $13.24
2026 $13.90
2027 $14.59
2028 $15.32
2029 $16.09
2030 $16.89
2031 $17.74
2032 $18.62
2033 $19.56
2034 $20.53
2035 $21.56
2036 $22.64
2037 $23.77
2038 $24.96
2039 $26.21
2040 $27.52
2041 $28.89
2042 $30.34
2043 $31.85
2044 $33.45
2045 $35.12
2046 $36.88
2047 $38.72
2048 $40.66
2049 $42.69
2050 $44.82
2051 $47.06
2052 $49.42
2053 $51.89
2054 $54.48

 

[DisDaydreamer]

 

[jjj623]

The easy answer is "it depends" - mostly on how fast the dues increase, and when your property deed expires....

I assumed:
- 4% annual return on your investment (Not great)
- 4% annual increase in dues
- 2007 dues were $1,650 and have been paid
- Money invested now for first payment in 2008
- Dues payments required through 2054 (Saratoga's expiration)

Given those assumptions, I calculate that you'd need to invest about $78,000 today in order to have the savings & interest pay your dues until expiration.

Fun math,

Jeff

 

[Kickapoo Joie Juice]

Totally cool question and answers.

Too bad math makes my head hurt, but I'll show this to my smarter half, he LOVES anything that starts with the words "what if?" and requires a spread sheet of some sort

 

[DisneyDVCdad]

My brain hurts!

 

[DISNEY FIX]

Ok math people what about this, Insead of ever doing and add on for another 100 points how would it work out if I just periodically replentished 200 points at $10 pp in a transfer? That seems like regaining the benefits of buying that first loaded contract. Does anyone do this type of thing.
Thanks
Chris

 

[uicbear]

I'm never looking at a "how much will it cost...?" thread again!

 

[Disney_Mama]

I'm never looking at a "how much will it cost...?" thread again!

YOU SAID IT!

 

[TammyAlphabet]

Totally cool question and answers.

Too bad math makes my head hurt, but I'll show this to my smarter half, he LOVES anything that starts with the words "what if?" and requires a spread sheet of some sort

I love spreadsheets too!!!!!!!!!!! (How dorky is that? )

 

[Kickapoo Joie Juice]

I'm bumping this so I can make the Saturday night crowd's collective brains ache, too!

 

[DVCconvert]

I'm bumping this so I can make the Saturday night crowd's collective brains ache, too!

It's much more likely that the cans of consumed beer will make the saturday night's crowd brain's ache!!


Presumuptions/asumptions are great for projections - reality may vary.

 

[twinmomplus2new]

I have done that several times. 700 in dues on points or rent the 70 points and pay no dues for 700. Simple math to me.

 

[fishermouse]

I feel stupid , I just want to play with Mickey and Minnie.

 

[dizzneebabe]

STEP AWAY FROM THE CALCULATOR!!!!

Although, if I thought about how much anything "REALLY" cost--including my kids, I might faint, so I'll just stay in my own little Disney dream world and think happy thoughts!

It's a small world after all...It's a small world after all... I hope this acts as a distraction!!!

 

[JWG]

If we were supposed to "think" about and "understand" how much we paid for vacations, especially timeshares (any) - they'd make it easy.

People, stop trying to upset the space time continuum by being smart about your spending and saving habbits, that's not in the timeshare spirit .

Seriously though, my brain now hurts

 

[johde]

According to Disney they estimate 48 years of dues on 220 point at SSR have a present value of $35,559. This is from the Year of a Million Dreams Contest grand prize.

 

[Kickapoo Joie Juice]

According to Disney they estimate 48 years of dues on 220 point at SSR have a present value of $35,559. This is from the Year of a Million Dreams Contest grand prize.

There's some Mickey Mouse Math for you, right there.