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Old 13-08-2008, 11:28   #1
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I have 140k how long.............

I already own the boat a 38 ft. how long could I sail for with another 140k in my pocket and a companon. Especialy if we are frugal, also where would the best places to frquent to make our money last. And I mean I dont want to come back anytime soon.......


Please help me I cant take much more and I am trying to make a decision if I need another year or 2 here. I am currently on the west coast California to be exact. I would much rather start in the east but I am hear the pacific has some beautiful locations too..

I keep trying to do some prelim calculations and they always end up wiht me back here in like 7 yrs broke. Also I would work along the way if possible, my sweetie is a massage therapist certified in all aspects would this be viable way for her to make a few bucks doing some relaxation messages on the boat etc???

Hope I am not being tooo vague
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Old 13-08-2008, 11:33   #2
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Spending about $1,000 month, $140,000 earning 5% should last about 9 years.
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Old 13-08-2008, 11:48   #3
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Would be a good 9 years, or 7 for that matter!

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Old 13-08-2008, 12:01   #4
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Well , In Turkey you could get around 18% on a savings account.
Just before we bought our new house there we were going to do around 10 years on 1000 per month or 7 years on 2000 per month, As its iffy if we live that long or if there will still be a world we thought it's ok

Steve
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Old 13-08-2008, 13:14   #5
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Do you have to reside in Turkey to open an account there?? And is that a savings account or some kind of investment can you point me in the right direction??

Friggin 18% is sounding pretty damn good, I have lost around 30k so far this yr in investments and finaly sold off my stock including Visa which had soared since its IPO. even 401k for my selfemployment is loosing money.

I am thinking a simply interest bearing account is safest at the moment hell my money market accoun t is getting 5.45% yrly

Anyone can point me to something better before the whole kitty gets thrown away would help a simple man before he goes overboard.

many many thanks in advanced
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Old 13-08-2008, 14:52   #6
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I dont know how stable the Turkish currency is and of course a weakening would be something that erode the 18% return. i know a lot of big Japanese and US investors have been parking money in Australia and New Zealand. You can get 8 - 8.5 % at call. However the recent strengthening of the greenback by 11% over the Aus $ would have meant that you were out of pocket instantly. putting your money overseas is a bet against your home currency. If you know that most of your time will be in one region then a local curency; if offering greater % return might be safest bet
Goodluck
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Old 13-08-2008, 23:02   #7
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The dollar has taken a spanking over the last 18 months or so. Some of us think its near bottom and ready to make a turn. Others aren't so confident.

The November elections will make something happen I am sure.

Having your kitty in the market exposes you to volatility. You want a large percentage to be as stable as possible when you toos lines.

You sound frustrated but you may be pulling out at the bottom.

Moving your money to a foreign country potentially has huge ROE risk. Unless you know the country, know the currency and have a reasonable expectation about stability you should beware - There is a reason that interest rates are 18% in Turkey. I don't know what they are but I'd want to find out before I sent money there.

However all things considered, if the boat is ready and you are ready and you have 140 grand in the bank - I'd go really soon. It's gonna run out someday. Work two more years and cruise 1-2 or 3 extra?

Go soon - have fun!
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Old 13-08-2008, 23:18   #8
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Buy an income produceing asset (house office business) and live off the income then when you get back it will have grown in capital
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Old 13-08-2008, 23:34   #9
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What about the euro I have heard the the bank of Montenegro is around 12% I think Thats how the banks name is spelt
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Old 14-08-2008, 08:24   #10
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To open a bank account in Turkey you have to have a resident visa. Easy enough to get but you have to :
Buy a house
Rent an apartment for a year
Get a marina contract for a year.
FYI
The Turkish liria is actuall getting stronger tha last few months.
The way to do it is that you have a one month savings account. After each month the intrest gets paid to a current account every month. This helps with any fluctuations.

Steve
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Old 14-08-2008, 08:53   #11
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$140,000 at 5% should last longer...

When I punch $140,000 in at 5% my little HP 10B tells me that this will produce $1,000 for 17.55 years, way longer than the 9 years indicated before.

Is 17.55 years long enough for you?

Otherwise, the best suggestion on the thread by far is to go buy some nice little rental houses in a stable market here in the US. Prices are down right now and this is the time to buy. For $140,000 you can buy at least two, maybe three, two bedroom, one bath homes that will rent for $900 each to safe, long term tenants. From the $900 you should net not less than $500 a month on each house.

Times two houses this will produce your $1000 a month and the property should protect your equity from inflation and the rents will also go up over time.

I realize that this is a lot of work for some people, but it has worked for me for over 30 years.

Disclosure: I am NOT a real estate broker and I have no interest in investing other people's money for them.

On the other hand, if the $1,000 a month return on the $140,000 capital earning 5% is enough for you, and you don't care about inflation, and you like to do things the easy way (always a temptation for me) then this might be a better way for you to go.

In any case, you are almost free and you have your health, a great boat and a fine woman. Just go sailing, the rest will take care of itself if you have than much cash behind you and you are prudent.

Good luck, keep us posted.
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Old 14-08-2008, 12:50   #12
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I get 13 years (start 140K, 12K/year used, 5%ror, 3.10% inflation), using the retirement calculator at bloomberg.

13 years is a pretty long time. Maybe go now, then come back in 3-5 years and go back to work. If you don't come back broke, you'll always know you have the option to go again. Kinda takes the sting out of working.
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Old 14-08-2008, 13:36   #13
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$140,000 invested

the difference is that bloomberg uses the 3.1% inflation factor.

the raw calculation is that $140,000 at 5% drawing out $1,000 a month will last for 17.55 years. this completely ignores inflation and that is why the suggestion to buy equities (good rental homes will work) will likely offer protection against inflation both in terms of the overall investment ($140,000) and the monthly income ($1,000).

the reality is that inflation is off the charts here in the u.s these days, and nobody really knows what's going to happen. we're all just holding our breath at this time. active income (business) is still the best way to go but going to work is the bane of the investor class and is not something that cruisers can really do from a traveling boat.
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Old 14-08-2008, 15:29   #14
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Originally Posted by sctpc View Post
Buy an income produceing asset (house office business) and live off the income then when you get back it will have grown in capital

This is what we are doing. I currently own 4 rental houses that kick off $2600 per month in net rental income. By next spring I will have 5 houses and around $3300 in monthly income.

I figure am hoping that we can cruise comfortably and frugally on that amount for as long as we wish. We plan to make trips back home fairly frequently and I know the rental houses will be a hassle from time to time and I will have to spend some money and deal with tenants, but they will also increase in value.

Thats the plan anyhow....

Around here, if your savvy about it you could purchase and own outright at least 2 small homes and have $20K or more left over. The homes would rent for $700 a month each. After you factor in property taxes and insurance costs, you would have no issues netting over $1K per month.


Terry
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Old 14-08-2008, 15:33   #15
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I have 2 questions.....

1. where do you find 2 or 3 houses for that price that rent at thoses prices. I live in California and that would be the deal of the century here so i am absolutely open for you to point to a market for those prices.

2. What do you folks normaly invest in I take it 5% is just a interest bearing account of which I cant find one near 5% currently. I had a MMA that was 5.25 but its long since been reduced to near 2.9%.

I have often wondered what everyone had been invested in generaly that continued to produce income while out.

I truly appreciate all the input so far.
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