We're 78 and Want to Use Our 2026 RMD to Treat Our Kids and Grandkids to a Vacation. How Should We Approach This?

Active Multi-Generation Family With Dog Walking Along Shore On Winter Beach Vacation.

Question: We're 78, retired, and want to use our 2026 RMD to treat our two children, spouses, and six grandkids to a week-long vacation. We're mobile but don't have the same energy as the younger folks (no matter how much coffee we drink)! How should we approach this?

Answer: For people with money in a traditional retirement savings plan, required minimum distributions (RMDs) can be a blessing and a curse. While RMDs can inevitably produce a sizable tax bill, they can also serve as an opportunity to splurge on experiences you otherwise wouldn't dream of.

If you're 78 years old with a mandatory RMD coming your way this year, you have a choice. You could grumble about having to take that withdrawal and pay the IRS its share, or you could use the money to treat your grown children, their spouses, and your six grandchildren to a week-long family vacation.

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At 78, the return on investment of an experience, such as a family vacation, is likely higher than any "thing" you could treat yourself to with those RMD funds.

Planning a trip like that, however, may be easier said than done. Even if you don't have mobility issues per se, at 78, you may not have the same energy level as the younger generations you're planning to travel with. And since you may be shelling out some serious cash for a vacation, be sure to look into travel insurance. If you're traveling abroad, consider travel health insurance.

Here are some tips for pulling off a memorable vacation that everyone enjoys.

Focus on activities that don't split the family up

If your goal in treating your family to a vacation is to bond and enjoy new experiences together, it's important to make sure you're planning activities that you can actually all do together. That's why Paul Whitten, founder, CEO, and historian at Nashville Adventures, says you need to be honest with yourself about what activities you can handle, and focus on those that offer family time that actually feels unified.

"Grandparents want to be involved, not sitting on a bench watching the younger folks have all the fun," Whitten explains. "That usually means leaning toward slower, guided experiences."

Whitten suggests focusing on activities such as walking tours, museum visits, boat rides, scenic neighborhoods, and slower-paced outings.

"Amusement parks and high-energy attractions often split the group fast and alienate older people," Whitten says. "Older folks love watching the grandchildren smile, but they do not want to be alienated from the group."

Carve out time for everyone to have their own space

While you don't want your main activities to force your family to split up, Whitten says it's also a good idea to give yourself and your family members a little space here and there during your travels.

"The best trips intentionally build in a bit of separation," he says. After a day of sightseeing, your grown kids may want a night out on the town, while you may prefer a jazz club or a quiet dinner. There's no reason not to allow for that.

Give yourselves easy access to different activities

Since it's a good idea to build in some solo activities during a family trip, another strategy for making things go smoothly is to choose the right lodging setup, says Casey Halloran, CEO and co-Founder at Costa Rican Vacations.

"Private villa rentals, small resorts, and destination properties that bundle on-site activities work really well here," Halloran explains. "They give families shared gathering space but still allow guests to branch off and do their own thing."

A setup like this could, for example, allow the grandkids to splash in the pool for an hour before dinner while the adults relax or get a massage.

Build in some downtime

You may be eager to explore a new destination with your kids and grandkids. But Halloran says it's also important to build some downtime into your itinerary.

"Older travelers often underestimate how exhausting constant packing, transfers, and early excursions can be," he says.

In Halloran's experience, multi-generational trips often work best when they're designed around big shared moments coupled with sufficient unstructured downtime, whether it's lounging by the pool or taking longer lunches.

Set clear financial expectations

You may be looking to foot the bill for a multi-generational family trip. And your RMD may be enough to cover all of it. Or, you may only be in a position to pay for the big-ticket items, like airfare and lodging, but you expect your grown kids to pay for meals and certain activities.

It's important to communicate this to your family up front, says Halloran. Setting the tone early can prevent awkwardness later.

Whitten says that if you're on a budget, it pays to take advantage of local resources.

"Almost every tourist city has a visitors bureau or tourism chamber with discounts posted online," he says. "Use walking tours instead of expensive trolley tours. Book museums with senior discounts ahead of time. And, my favorite thing, don’t overlook parks."

Start your planning early

Multi-generational trips can, in many cases, require significant planning. So the sooner you get the ball rolling, says Halloran, the smoother things might run.

"My number one tip is to start planning early," he says. "It takes time to plan a wonderful, thoughtful multi-generational trip, but it's worth it."

Planning early also helps ensure that everyone involved can get away without too much hassle.

Remember, your grown kids may have busy periods at work. Your grandkids may have limited school breaks. Providing plenty of notice could allow your kids and grandchildren to get away with clear heads, while giving you time to map out a memorable experience.

Better yet, delegate! Identify your most "type A" adult child and ask them to be the principal planner. You can lean on them for logistics while you provide an overall vision for the vacation.

Maurie Backman is a freelance contributor to Kiplinger. She has over a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. She has written for USA Today, U.S. News & World Report, and Bankrate. She studied creative writing and finance at Binghamton University and merged the two disciplines to help empower consumers to make smart financial planning decisions.