Retirement and boat purchase dilemma

[daletournier]

Originally Posted by Joli

Here's a good retirement calculator.
https://smartasset.com/retirement/re...tor#NVM0o0KXmo

SS isn't going to go bankrupt in 17 years but our kids and grand kids will unfortunately be paying more. We'll take SS at 62, the break even is 80 years old, every year you wait is an 8% increase. At 62 you receive 60%, at 67 you receive 100%, at 70 you receive 124%. One thing to consider is SS will probably be means tested at some point just as Medicaire already is. If you are already receiving SS it will be more difficult for the government to "take it away". Take it early!

Get a good financial adviser, they typically charge 1% and should make you an average of 6~8%, there job is to take care of your money. Also, get a good CPA, taxes need to be paid even if you are away and a good CPA can offer scenarios for you to consider. Make sure your CPA and Financial Adviser work together.

No one can tell you what the future holds, plan as best you can and then go do it.

Read your first sentence then your last. The last is definitely true,no one knows what the future holds that includes pensions 17 years from now.

[denverd0n]

Originally Posted by daletournier

I haven't read it all but it has always scared me how much faith people put in ss and 401k's.

I understand being skeptical about Social Security, but 401ks? That's your money, in an account that you control. It is COMPLETELY different from Social Security. The only way the government can take that away is if they decide to start arbitrarily confiscating private investment accounts.

That's just not going to happen.

[stnick]

You should look at a morgan 384 from morgan yacht largo fla. not Bob Perry design but Ted Brewer ! If your sailing the world yes Valiant or westsail no one would argue that . But for shallower oceans the Morgan is not perfect but at 30-40 k for 38 ft There is alot of fix up money left over.
morgan 38 owners @ yahoosailboat owners groups

[daletournier]

Originally Posted by denverd0n

I understand being skeptical about Social Security, but 401ks? That's your money, in an account that you control. It is COMPLETELY different from Social Security. The only way the government can take that away is if they decide to start arbitrarily confiscating private investment accounts.

That's just not going to happen.

I never suggested the government would take 401k (superannuation) a way.

In Australia you can self manage the fund, but most arent. I see mismanagement of these funds due to our near zero interest rate policys globally as a huge problem, the seeking of 7-8% returns in this environment is a real problem regarding these funds, dont mis read that, im not suggesting that funds aren't getting that, im suggesting looking at the quality of the investments. Look at Teslas market cap? Never made a profit yet its market cap is similar to GM's, look at the shale oil industry and the money invested in it, what's the price of a barrel of oil? Artificially low interest rates are a real problem for these funds, it changes the way they invest.

Also I never suggested that private property would be taken? In fact I believe debt free property as a safe haven, sure it may take a hit but it will still be there.

Now individual bank accounts? That's a whole other story, bail ins are definitely a possibility in the future, ask cyprus.

Anyway we are far away from the op's question. I think kens got the right idea, cruise part time and top up the kitty the other half.

[michaelratinter]

Twenty years ago I told my business partner that I wanted to live aboard a boat when I retired. He was a former sea-going Naval officer. He said, "Before you do that, you and your wife should move into a travel trailer, not a double-wide. Park it in the middle of a wheat field in Kansas and don't go outside for several months."

I didn't take his advice. I love my boat but now I see his point!

[meatservo]

Originally Posted by michaelratinter

Twenty years ago I told my business partner that I wanted to live aboard a boat when I retired. He was a former sea-going Naval officer. He said, "Before you do that, you and your wife should move into a travel trailer, not a double-wide. Park it in the middle of a wheat field in Kansas and don't go outside for several months."

I didn't take his advice. I love my boat but now I see his point!

You could use a double wide for this experiment if you get a 50 foot cat...

just sayin'


meatservo

[michaelratinter]

Originally Posted by meatservo

You could use a double wide for this experiment if you get a 50 foot cat...

just sayin'


meatservo

Good one!

[Kenomac]

Originally Posted by daletournier

I never suggested the government would take 401k (superannuation) a way.

In Australia you can self manage the fund, but most arent. I see mismanagement of these funds due to our near zero interest rate policys globally as a huge problem, the seeking of 7-8% returns in this environment is a real problem regarding these funds, dont mis read that, im not suggesting that funds aren't getting that, im suggesting looking at the quality of the investments. Look at Teslas market cap? Never made a profit yet its market cap is similar to GM's, look at the shale oil industry and the money invested in it, what's the price of a barrel of oil? Artificially low interest rates are a real problem for these funds, it changes the way they invest.

Also I never suggested that private property would be taken? In fact I believe debt free property as a safe haven, sure it may take a hit but it will still be there.

Now individual bank accounts? That's a whole other story, bail ins are definitely a possibility in the future, ask cyprus.

Anyway we are far away from the op's question. I think kens got the right idea, cruise part time and top up the kitty the other half.

Actually the US government can confiscate 401 money if it decides to, by taxing it heavily. Tax laws change all the time. Means testing, our town in Massachusetts already does this by taxing commercial property at nearly 3x the rate as residential property... the mayor and city council assumes all business owners are rich, which has created a business exodus to neighboring communities in New Hampshire, and left many downtown buildings vacant.

[daletournier]

Originally Posted by Kenomac

Actually the US government can confiscate 401 money if it decides to, by taxing it heavily. Tax laws change all the time.

Hi Ken, they play around with the regulations concerning Australias equivalent at times and the tax side ooff it as well at times.
In Australia employers pay in to the employee superfunds, employees don't have to contribute themselves , for years its been 9% for most businesses. I haven't been an employee since I was 22 , I have approx $1200 in super, I have 20 years until I can collect it..lol.

[Code Blue]

Bob:
My wife and I are in a very similar situation. We are also health care professionals. We sold both large homes. Both had equity. We downsized substantially to an area we'd like to retire to and bought a boat with the remainder keeping $25% for repairs on hand (we spent the reserves already on refit). In our case, she retires first so we coastal cruise a week or 10 days at a time every 6 weeks and I keep working. Even in retirement, we can opt to take travel assignments here or there to avoid dipping into our 401k, 403b. That's the plan so far and it's working. It's a scary life change but it's worth it. We have friends and family that don't get it and think we're crazy. That's OK. Not everyone thinks like we do.

[Cadence]

Originally Posted by Kenomac

Actually the US government can confiscate 401 money if it decides to, by taxing it heavily. Tax laws change all the time. Means testing, our town in Massachusetts already does this by taxing commercial property at nearly 3x the rate as residential property... the mayor and city council assumes all business owners are rich, which has created a business exodus to neighboring communities in New Hampshire, and left many downtown buildings vacant.

I believe the higher taxes on commercial property is about universal in the states.

[Zven]

Originally Posted by denverd0n

I understand being skeptical about Social Security, but 401ks? That's your money, in an account that you control. It is COMPLETELY different from Social Security. The only way the government can take that away is if they decide to start arbitrarily confiscating private investment accounts.
That's just not going to happen.

Stranger things have happened...

Taxation is really nothing but "confiscating private investment".

Inflation is another possible source of loss. It was a big problem in many countries back in the 1970s, and could return again. Inflation can reach millons of percent, which can swiftly wipe out certain investments. It happened in Germany less than 100 years ago.

Politicians can also be unpredictable. Just half a year ago, the government of India declared that most of the country's banknotes were to be invalid, virtually overnight. Of course they claimed it was meant to hurt criminals. The real losers were those that could not quickly get to a bank.

If another currency one day takes over the US dollar's role as world reserve currency, that would be painful for Americans.

That's before you even consider a more classical systemic meltdown, hurting share prices etc... or a bad war.

The list of possibilities goes on and on.

At the very least, I'd make sure my funds are diversified across multiple countries and asset types.

[DeepCut]

OP: If you haven't sailed... DO. 2 weeks at a time or more.
I too am a health professional and I have arranged taking time off and sailing.I put my dream off, but at age 55, i own a boat(42 Lagoon) and have it is charter fleet. I used it 7 weeks since October. Planning on using at least that in next year(usually 2 week blocks of time) and then will do several 4-8 week cruises in Caribbean . I enjoy working dn enjoy my time off.
You did not mention how much is in your retirement accounts but living on $1400 a month not likely, especially keeping1 of your homes.

I agree with down sizing and evaluating your true expenses. Also perhaps focus on engaging your dreams as you work. Adjust your current work to allow more time off. Surprising that my income did not go down even when I increased my time off to 10 weeks a year (surgeon).

Good luck

DeepCut

S/v SeaTiger SailSeaTiger@Gmail.com

[leboyd]

I've only been on the forum for a few months.

This is the most negative and pessimistic forums I've every seen. I don't know how some of you even get out of bed in the morning with your out look on life.

[Cadence]

Originally Posted by leboyd

I've only been on the forum for a few months.

This is the most negative and pessimistic forums I've every seen. I don't know how some of you even get out of bed in the morning with your out look on life.

Some of the pessimism is from experience, some is from total BS. Pick out what is worthwhile.