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The key takeaway is that your bags are most likely delayed, not lost.
I'm 63 With $1.5M. Can I Spend $10K a Month?
You’ve saved $1.5 million. Now comes the real test.
Can it produce $10,000 a month, or will that pace drain your portfolio?
Most retirees do not get a clear answer until it is too late.
The issue is not just how much you have. It is whether your portfolio was built to pay you, not just grow.
That difference can determine whether your money lasts decades or starts breaking down early.
Sequence of returns, taxes on withdrawals, healthcare costs, and whether the 4% rule still applies all play a role.
Fiduciary advisors created a breakdown showing what drives sustainable income and why the same $1.5M can produce very different outcomes.
If you have $1M or more invested, do not guess.
It Keeps Happening
First things first: we’re well into the second half of 2026, and luggage is still getting lost. How is that possible?
First, it is important to understand the background. According to SITA’s Baggage IT Insights report for 2025, airports and airlines worldwide handled a total of 5.3 billion passengers in 2024 and lost approximately 33.4 million bags—an average of 6.3 bags per 1,000 passengers (not too bad).
However, it is not all bad news: the rate of lost bags dropped by 8.7% compared to the previous year, and 66% of those bags were returned to their owners.
In any case, things aren't always as they seem. Most of those bags aren't actually lost; they are simply delayed.
Photo by Albert Stoynov on Unsplash
SITA found that 74% of cases involve delayed bags, while only 8% are truly lost or stolen. The remaining 18% involve damage.
The reasons for these losses, delays, and errors are always the same:
Tight connection times between flights (41%).
Bags delayed from the start (17%).
Mislabeled bags.
And last-minute check-ins.
What to do in the first 24 hours?
As with many airport-related issues, the first 24 hours are crucial. Before leaving the airport, do the following:
Before boarding your flight:
Keep your boarding pass and baggage claim receipt handy at all times.
Download the airline's real-time tracking app (if available) and get the airline's customer service number.
Take photos of the baggage tag and the suitcase itself.
Arriving at your destination
Go directly to the airline's baggage service (not general customer service) and file a Property Irregularity Report (PIR). This will provide you with a written reference number and establish the basis for your claim.
Photo by Goh Rhy Yan on Unsplash
Rules You Need to Know
Domestic Flights
The rules always depend on the specific country; in the United States, for instance, the Department of Transportation requires airlines to pay the full value of your luggage if it is officially declared lost or significantly delayed (meaning it arrives at your destination more than 12 hours late). Most airlines classify a bag as lost after a period ranging from 5 to 14 days.
International Flights
Under the Montreal Convention, which governs most (if not all) airlines, a suitcase is officially declared lost after being missing for 21 days. For flights of 12 hours or less between domestic and international airports, "significantly delayed" means the bag has not been delivered within 15 hours. For longer flights, this timeframe extends to 30 hours.
Intercontinental Flights / Connecting Flights
If your luggage has been handled by multiple carriers, you must file your Property Irregularity Report (PIR) with the airline operating your final flight, as they are generally responsible for the baggage under the Montreal Convention.
You should also keep your boarding passes for every leg of the journey; this makes it easier to prove where the itinerary was interrupted.
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Your Rights as a Passenger
For domestic flights within the United States, the maximum liability for lost or damaged baggage is $4,700 USD.
For international flights governed by the Montreal Convention, the liability limit is 1,519 SDR—approximately $2,000 to $2,100 USD.
In the event of delayed baggage, you are entitled to reimbursement for reasonable expenses incurred while waiting (such as clothing, toiletries, and essential items). You must submit receipts for all such purchases to make this claim.
Additionally, if you paid a baggage check-in fee, that fee must be refunded if your luggage is lost or significantly delayed.
In the European Union, you have 7 days to submit a written claim for baggage damage and 21 days to submit a claim for delayed baggage.
Photo by Jeff Hopper on Unsplash
What can you claim?
The value of lost items (with proof of purchase), interim expenses incurred during a delay, the repair or replacement of damaged items, and the cost of the luggage itself.
Fragile items, cash, jewelry, and electronic devices are typically excluded from standard liability coverage. To protect these items, it is recommended to declare them at check-in and insure them separately.
Documents Required for a Claim
PIR reference number and a copy.
Boarding passes and baggage claim tags for each leg of the journey.
Original receipts and proof of value for the lost items.
Receipts for any expenses incurred while waiting.
Photos of your suitcase taken beforehand and proof of its contents.
A written claim letter citing the applicable regulation: DOT regulations for domestic flights within the United States or the Montreal Convention for international flights.
Photo by Azzadiva Sawungrana on Unsplash
Submit your claim in writing within 7 days for damage and 21 days for delays. Airlines typically respond within 30 to 60 days; if they do not, you can escalate the matter to the national aviation authority (such as the DOT) or dispute the charge with your credit card issuer.
Tips to Avoid Losses
Remove all tags from previous trips from your luggage to avoid confusion in the scanning system.
Place a luggage tracker—such as an AirTag or a similar Bluetooth tag—inside your suitcase. Many airlines, including British Airways, Lufthansa, Qantas, and Cathay Pacific, use tracking systems that integrate directly with SITA’s WorldTracer, allowing them to locate your luggage much faster. Others offer apps that let you track your suitcase in real time.
If you choose flights with layovers, opt for longer ones; this can reduce the risk of delays by 41%.
Avoid checking in at the last minute.
Pack your medication, documents, and valuables in your carry-on luggage, never in your checked bags.
Take a photo of your luggage before traveling; it often serves as identification and proof of your suitcase's condition before you check it in.
Photo by Anthony Maw on Unsplash
Airlines with more and fewer baggage reports
According to U.S. Department of Transportation data on air travel consumers, American Airlines and United Airlines have the highest rates of mishandled baggage among major U.S. carriers, while Allegiant, JetBlue, Southwest, and Delta recorded the lowest rates.
Globally, regional data from SITA shows that Asia-Pacific airports and airlines perform the best, with 3.1 mishandled bags per 1,000 passengers. They are followed by North America, with 5.5, and Europe, with 12.3 mishandled bags per 1,000 passengers.
See you next time,
Short on cash? Get up to $750, no credit check.
Access up to $750* from your upcoming paycheck within minutes for a small fee, or wait 3 days and get it for free. No credit check. No late fees.
*Not all users will qualify. Advances range from $25–$750; average advance is $170. Express transfer fees may apply.