A dream vacation is a short-to-medium-term goal, which changes the calculus compared to long-horizon goals like retirement — with a shorter runway, there's less time to recover from a market dip, so capital preservation matters more than chasing the highest possible return.

For a goal 1-3 years out, a debt-oriented or hybrid approach with modest, steady growth is usually more appropriate than an aggressive equity allocation. The aim is simple: know the target cost, work backwards to a monthly or lumpsum contribution, and keep the money accessible and largely protected as the travel dates approach.

It's also worth pricing the trip in the currency you'll actually spend in where relevant, and building in a margin for exchange-rate movement and the general tendency for travel budgets to run over once you're actually there.