How Much is a Month Worth

[Kenomac]

OK, here's some good financial advice:

Busting your unhappy a$$ today for the possibility of an extra $10k ten years down the road is only going to buy you and your wife some premium adult diapers on the other end 15-20 years from now.

My wife and I work in healthcare... We see it all the time. The ones who work hard and wait... either don't make it to the retirement they envision or they end up sitting in premium adult diapers in their 80's and 90's that they worked hard for in their 60's.

How's that for a dose of reality?

[boatman61]

Ahhh... The old 'Its for the little woman' arguement..

[brownoarsman]

10k in 9 years is 8300 today at 2% inflation. So, take 8300 out of your cruising budget that first year, stick it in a long term cd, and go.
If you're looking at that A LOT more number, take 8300, put it in a similarly undiversified and risky equity, and cross your fingers.
If you want instead, take 4200, put it in the s&p index, hope for average 10% per year value growth, and have the same 10k in nine years.
From your posts, I could probably find $4,200 in your budget that you won't miss terribly, and you'll probably enjoy living on a $2,650/month cruising budget that first year and seeing the East Coast by boat more than you would skipping that part of your dream and working a few extra months.


Sent from my iPhone using Cruisers Sailing Forum

[accomplice]

A few months for 10k? Go sooner, rather than later.

We decided to get the boat now and take as much time as we can to enjoy it now (about 18weeks/yr) because we don't know what kind of condition we'll be in when our children fly the coop. When our youngest gets out of highschool, we'll go do it full time. We'll adjust to whatever the financial situation we're in at the time.

I'd rather leave my children an example of trying to get the most of of life than to leave them a big pile of money.

[a64pilot]

Originally Posted by hamburking

Imagine you get diagnosed with cancer in 2 years.

Flip side, imagine you get diagnosed with Cancer, and don't have the money / insurance to fight it?
There is no right answer, just different answers, I like reading these threads as sometimes they bring up something I hadn't though of.

[a64pilot]

What I would love to figure out is how you guy's can take 6 months off and have a job to come back to?
If I could cruise in 6 month increments, I would mind working for several more years

[vlathom]

I'm not one of the do-it-now-or-RIP people. I would be more concerned about how diverse your investments are. Remember the 2000 tech crash? A lot of people went from $million to zero overnight because they had "free" stocks in the company they worked for. Then the company collapsed and they were left holding an empty bag. You might want to take the money now if you're in that potential situation.

[Jeff Bacon]

When you get a lump sum of money (your $10,000) you can, generally, do two things with it : Spend it, or invest it (not considering charities, kids education, legacies, etc).

If you spend it, you will have traded the $ for some other asset. That asset will most likely depreciate, but, you will have the use and enjoyment of it, but no other benefit.
If you want to convert it back to cash, chances are almost 100% you will get much less for it.

If you invest it, you can invest for growth or income. In 9 years at age 66 (?), I would also assume that income would be more important than growth. So, at todays guaranteed rates of, say 1%, you would be earning $8.33 per month. In 9 years if rates go up to 7% you could earn $58 per month.
So, the answer to your question of How Much Is A Month Worth ?, it would be worth somewhere between $8 and $58.

Naturally, this assumes that your ESOP will grow to that amount which has always been the problem with an investment that will pay out at a fixed time in the future..... you must convert the investment at that specific time and will not have the opportunity to "ride out" a down trend or a crash.

Go Now !!!

[farmall.dude]

I think to answer that question you have to ask yourself: Do you believe strongly enough that the company will still be around in 10 years, and the stock have value, to sell an additional few months of your life to the company. That's what we're doing after all, selling our life for an hourly wage. Another question you must answer is; Will you be casting off the day you retire anyway? If not, you'll be postponing it a what, a few weeks, maybe? Spend those extra months you're still employed preparing your boat and such, and cast off as soon as you retire (or wait out one more winter). Certainly no one but yourself can make that decision for you, but if it were me, I would calculate very carefully the risks and advantages (pros and cons) both financial and personal and make a decision once I have as many facts as possible. But, that's how I am. You do what feels right in your heart!

Whatever your decision, I envy you!

Cheers!

[Kenomac]

Originally Posted by a64pilot

What I would love to figure out is how you guy's can take 6 months off and have a job to come back to?
If I could cruise in 6 month increments, I would mind working for several more years

I went back to work as a seasonal Registered Nurse. Six months full time or as much as I like, then six months off. We also own commercial rental property.

I give up some pay and benefits as a seasonal worker, but the freedom is well worth it.

[Cadence]

Originally Posted by sailorboy1

Kind of a continuation of my 55 or 56 thread about whether to work an extra year (I'm working the extra year) before stopping working to head out cruising:

I've decided to work till next year before stopping working and heading out cruising (overall CF said to do this). So in looking at this timing I started looking at my company's ESOP (Employee Stock Ownership Program) that is basically free money given to me as company stock. I'm in at the ground floor of the ESOP and there is a good chance that within the next year the company will be 100% owned by employees in the plan (major major benefits for the company profitability). This is "free" money that I get for just being an employee. And I'll already be 100% vested this year for you that understand.

Next year the years could be easily worth $10,000 for the year to me (more than what I already have) AT AGE 65 (I'll be 56 next year). BUT to get I have to be an employee till the end of the program year, which ends on Sept 30, and I really wanted to leave earlier to see the East Coast of US as I head down to get out of the cold. And by the time I can cash out of the program (9 years later) there really isn't any guarantee that the stock with be worth anything (but could worth a LOT more than the $10,000).

So the question is: would you work a few extra months, beyond the extra year you already have decided to do, in a job you really don't want to do, to maybe get $10,000 in 9 years? It could be $0 but then it also could be a lot more than $10,000 if the company continues to do well.

Goes right to the heart of the "go now" argument.

You may also wish to look into any pending or existing tax laws?

[nic26]

Sorry, if I am being too direct, dear.

After reading this "This is a consideration as my Mom died of cancer at 65, one of my brothers just died of cancer at 48, and I had a heart attack 2 years ago."

I would be afraid you never make it to the sea (nope I am no doctor, but had a heart attack too). Even IF you get the 10k or whatever it is then there is no guaranty that the dollar still has a good value then....

The only real value left to us oldies (63 here) is TIME so use it to YOUR advantage.

[Racer86]

Google : United Airlines ESOP. Employees lost everything ( their ownership stock in the ESOP ) when the company went bankrupt. My family member had his total retirement saving wiped out in that deal. He was 58 when this happened,,,,,,,,,,,,GO SAILING NOW.

[boatman61]

Originally Posted by nic26

Sorry, if I am being too direct, dear.

After reading this "This is a consideration as my Mom died of cancer at 65, one of my brothers just died of cancer at 48, and I had a heart attack 2 years ago."

I would be afraid you never make it to the sea (nope I am no doctor, but had a heart attack too). Even IF you get the 10k or whatever it is then there is no guaranty that the dollar still has a good value then....

The only real value left to us oldies (63 here) is TIME so use it to YOUR advantage.

[Cadence]

Originally Posted by Kenomac

OK, here's some good financial advice:

Busting your unhappy a$$ today for the possibility of an extra $10k ten years down the road is only going to buy you and your wife some premium adult diapers on the other end 15-20 years from now.

My wife and I work in healthcare... We see it all the time. The ones who work hard and wait... either don't make it to the retirement they envision or they end up sitting in premium adult diapers in their 80's and 90's that they worked hard for in their 60's.

How's that for a dose of reality?

Cruel but true.