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Old 03-05-2016, 14:38   #16
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Re: Land sailing, water sailing, and taxes

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Originally Posted by Dave22q View Post
Boo hoo. It's just awful. That nasty old government taxing your IRA withdrawals. They should tax some single mom's food stamps instead. Nevermind that your deposits dodged taxes. Taxes are for somebody else. Never ME!!!
What an unusually and unnecessarily hostile reply. That's very odd.

I hope you feel better tomorrow with whatever problems you are having in your life.
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Old 03-05-2016, 14:51   #17
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Re: Land sailing, water sailing, and taxes

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Go to this site:

https://www.dinkytown.net/java/TaxMargin.html

and compute the tax on a 40 foot catamaran. Now do the tax if that is spread over three years. Then explain to me how that doesn't have an effect on my life.
That's typical of people who are overly focused on taxes to point to a marginal tax rate calculator. The marginal rate is the least useful rate for a cruiser but the one that sounds the scariest. Of course you should consider keeping costs down while you transition your life. Delaying is just going to make you older with less life to cruise, blaming it on taxes is Fox News delusion.
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Old 03-05-2016, 15:06   #18
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Re: Land sailing, water sailing, and taxes

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That's typical of people who are overly focused on taxes to point to a marginal tax rate calculator. The marginal rate is the least useful rate for a cruiser but the one that sounds the scariest. Of course you should consider keeping costs down while you transition your life. Delaying is just going to make you older with less life to cruise, blaming it on taxes is Fox News delusion.
Don't look at the marginal rate, look at the actual taxes paid. It's a very simple thing to do. Look at the dollars difference in lifestyle. Maybe you are so rich that you can throw around six figure sums and not have it affect you, but I can't.
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Old 03-05-2016, 16:06   #19
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Re: Land sailing, water sailing, and taxes

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Don't look at the marginal rate, look at the actual taxes paid. It's a very simple thing to do. Look at the dollars difference in lifestyle. Maybe you are so rich that you can throw around six figure sums and not have it affect you, but I can't.
You've already figured out how to take the tax deffered money out over multiple years, so you are not throwing around 6 figure sums in a single year. Do whatever you want, whenever you want. I just don't see your public blaming it on taxes as anything but rationalizing.
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Old 03-05-2016, 16:40   #20
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Re: Land sailing, water sailing, and taxes

yes, retirement savings are designed to build gradually in small payments, then be withdrawn in small payments. a 401k or IRA or Keogh may look like a lump sum, but it is really a stream of potential retirement withdrawals for the future.

you'll have to pay the tax bracket penalty if you now try to change the 401k's character into a lump sum savings account, or you'll have to borrow against it and pay the interest.

aside from the attacks regarding the joy of paying taxes, I think this has been a good discussion, pertinent to CF, and helpful to younger cruisers who are considering raiding a retirement annuity to purchase a boat.

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Old 03-05-2016, 18:14   #21
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Re: Land sailing, water sailing, and taxes

Last time I RV'd was in the 70's thru Europe when there were few restrictions as to where to park....
My girlfriend and I had a British Comer Caravanette

We freely parked at Beaches, remote roadside, Lakes, riversides....just about anywhere that we liked.

What is it like now? I have heard that Wallmart parking lots are popular and RV sites are now mandatory and like trailer parks.
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Old 03-05-2016, 20:22   #22
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Re: Land sailing, water sailing, and taxes

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You've already figured out how to take the tax deffered money out over multiple years, so you are not throwing around 6 figure sums in a single year. Do whatever you want, whenever you want. I just don't see your public blaming it on taxes as anything but rationalizing.
So you don't see doing something to avoid taxes as having anything to do with taxes? Um, OK.
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Old 03-05-2016, 22:27   #23
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Re: Land sailing, water sailing, and taxes

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So you don't see doing something to avoid taxes as having anything to do with taxes? Um, OK.
I don't see putting off your cruising as having to do with taxes. There are many ways to withdraw from your deffered accounts drawn out over multiple years to manage taxes, such as using a loan on the account, using a loan on other assets, using non-deffered money, withdrawing in Dec and Jan,. You're a smart guy, I'm sure you can come with many more.
Taxes are a small part of decision making, not the be all and and all. If you take tax avoidance to its absurdity you end up with lots of assets to pass on while you lay dead in the grave.
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Old 05-05-2016, 08:04   #24
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Re: Land sailing, water sailing, and taxes

The problem with a loan is you are trading taxes for interest. You might save a bit but that will eat up a lot of the savings.


Unfortunately, the time to consider this was in the past when you could have been setting boat purchase money aside in a ROTH or other after tax investment.


Having a boat and an RV is a great option (we do it) as is canal cruising (which we've done some).


At this point, it's just a question of bite the bullet and get the boat now or wait for a couple year to pull the money out gradually.
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Old 05-05-2016, 13:53   #25
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Re: Land sailing, water sailing, and taxes

Interest paid on a loan outside of the 401k may be offset by the investment earnings inside the 401k.


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Old 07-05-2016, 09:04   #26
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Re: Land sailing, water sailing, and taxes

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What is it like now? I have heard that Wallmart parking lots are popular and RV sites are now mandatory and like trailer parks.
I can't speak to Europe but while that is becoming popular in the more populated east coast of the U.S., there are many, many more options out west. One can camp free almost anywhere on National Forest or BLM land. Some established national forest sites and state camp grounds have much more room between sites.

There are sites dedicated to boon docking that give reports on convenient free boon docking locations.

When I cruise the Bahamas, for a single $150 entry I can anchor for months at no additional cost. It might be hard to spend only $150 for 3 months with a camper, but the cost of the camper, cost of insurance and cost of maintenance is notably less than a cruising sailboat, or at least can be.
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Old 07-05-2016, 18:19   #27
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Re: Land sailing, water sailing, and taxes

For those who are RV'ers, maybe try an RV Forum for support. I'm sure they're mostly anti-gov.
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Old 10-05-2016, 17:14   #28
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Re: Land sailing, water sailing, and taxes

I looked at the numbers on a 401k a long time ago.

I invested in small asset growth items. Like art, cars and small boats to flip. Return is a little less than a 401k. Taxes are way less.

I just founded a startup and we headquartered outside the US. So tired of the double tax scheme.


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Old 11-05-2016, 05:55   #29
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Re: Land sailing, water sailing, and taxes

Death and taxes, two things that can not be avoided. Yes you can try to optimize your cash and there will be an expense in another area. Every year of waiting you miss out on wonderful adventures. Yes it is a personal decision. We don't intend on using out retirement money for the purchase of our boat, we will sell real estate for that, but there is no way around paying taxes. You just have to decide I'd the amount you are going to pay is worth what you are going to miss out on.


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