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Old 17-05-2016, 17:05   #16
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Re: Liveaboard cruiser to be and retirement

My wife (43) and I (53) are currently having a similar discussion.

It is her opinion that we must wait until we have secured sufficient resources to maintain the lifestyle that she has envisioned. A brand new 40+ ft Cat, paid for, $8K to $10K in monthly income, etc.... I, on the other hand, maintain that I will continue to work until I have decided that I have had enough and not one day longer. At that point, we sell our business, we sell our house, cars, etc, and we go and we will just have to make due with the resources we have accumulated to that point. Perhaps purchase a nice, well maintained used boat, perhaps make due with only $4K to $5K per month in income. In other words, we will adjust our lifestyle to fit within our means. As I mentioned to her, if we have to wait until we hit some "magic number", we may be too old, or even worse, before we get there.

This may not be the most conservative approach, but I refuse to be paralyzed by fear of what might happen, and ultimately regretting that I had not even given it a shot.
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Old 17-05-2016, 17:25   #17
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Re: Liveaboard cruiser to be and retirement

HighTemp said:
"Perhaps purchase a nice, well maintained used boat, perhaps make due with only $4K to $5K per month in income. In other words, we will adjust our lifestyle to fit within our means. As I mentioned to her, if we have to wait until we hit some "magic number", we may be too old, or even worse, before we get there.

This may not be the most conservative approach, but I refuse to be paralyzed by fear of what might happen, and ultimately regretting that I had not even given it a shot."


That too was our plan. When the "life style adjustment" became just potentially necessary in the 2nd half of 2002 my wife found she could not bring herself to gracefully accept the POSSIBLE loss of future income and net worth.

Her family was quite poor while she was young and they built their businesses. She never wanted to return to those days of financial concern and I do understand why she felt the way she did in 2002. But, never the less it really changed our long term cruising plans.

We had been a committed couple for 28 years at that time and I thought I understood my wife. She is frugal, if not cheap, and does not spend a penny more than necessary. Even after all the losses we experienced in 2002 we still had a significant net worth and an income far greater than what we spent. We also knew that we'd both receive maximum possible social security benefits and her very nice pension would begin at her age 60.

But, the need to potentially spend principal from our savings at some time prior to her full retirement and social security beginning (2015 and 2018 respectively) was more than she could handle.

We had talked about the potential for that (spending principal) before we left for Mexico and she seemed to understand it and be OK with it. But, in the fall of 2002 when looking at the loss of several hundred thousand dollars in net worth, she panicked and went back to the one source of financial security she really trusted.

Full Time work for a steady employer with no chance of layoffs.

Saying you are going to adjust your lifestyle to match your actual income and living that adjustment are two quite different things.
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Old 17-05-2016, 17:55   #18
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Re: Liveaboard cruiser to be and retirement

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Saying you are going to adjust your lifestyle to match your actual income and living that adjustment are two quite different things.
Oh, I understand, I have no desire to return to the days of crappy one bedroom apartments and eating nothing but spam and instant noodles every night. I lived that for a lot of my young life. If I have to do it in my 70's, because that is what life's circumstances sent my way, then so be it. I will survive.

My point being that if this is truly the lifestyle that she and I want to ultimately pursue, we will need to go in to it understanding that we may not always be able to have everything that we wish for, otherwise we are only setting ourselves up for disappointment. It is easy to find reasons not to do something. A bit of flexibility is all I ask.

Everyones situation differs. I subscribe to doing the best we can with what we have and enjoying our lives. I certainly hope that she still shares this view when the time comes to cast off lines.
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Old 17-05-2016, 19:04   #19
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Re: Liveaboard cruiser to be and retirement

My wife and I reached the point of "to hell with it after 42 years of marriage. We were leaving on a Thursday. We went to bed Wednesday night in fine spirits ready to cast off the next day. In the middle of the night I was awakened by the most terrfyng screaming I have ever heard. We spent the next five years in hospitals trying to keep my beautiful Laura alive. She didn't make it.

The regret ....... we waited too long.

I Recently remarried. We are leaving in August.
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Old 17-05-2016, 19:15   #20
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Re: Liveaboard cruiser to be and retirement

I can only add to the recommendation for FireCalc. I have recommended it to a number of folks. It takes a bit of fooling around with to ferret out all the features and potential but it is worth it.
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Old 18-05-2016, 00:38   #21
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Re: Liveaboard cruiser to be and retirement

Well we left a bit over 8 years when I turned 62 and the Admiral 61. We sold or got rid of almost everything, paid off our boat - a 2001 launched 2003 Jeanneau DS 40 - and headed to the Bahamas hoping we did not sink the boat.
We do not have big 401ks or savings as to many poor choices in companions. We live on Social Security and do not carry insurance. We would like to carry insurance but trying to get someone to insure you at our age is very hard. We have had medical care all over the Caribbean and Med and it really inexpensive compared to the USA.

What will we do when we get off the boat - and we know that we can not continue this forever as the joints don't work like they did a bunch of years ago - we have no idea but will deal with that when the time comes.

as for the cost -- we publish our cost every year and if you go here you can find out what we have spent over the past 7 years by item - and this is everything we spend - every penny -
7 years of cost data

And it really depends on where you are headed - as I said we had hoped to get to the Bahamas and back without sinking the boat and did but after that - well things just out of hand - both sides of the Caribbean - a 2 handed Atlantic crossing - 3 years in the Med and now trying to get to the Black Sea for the summer

You can analyze it until you get paralysis by analysis or just make a decision and be done with it and move on never looking back - you're call -- we made ours and wow what a journey so far
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Old 18-05-2016, 04:44   #22
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Re: Liveaboard cruiser to be and retirement

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. My question does NOT involve how much it takes to live aboard and cruise. My husband (55) and I (46) are looking to retire and cruise until we no longer can. I'm finding we are so concerned that we will never have enough money.
My wife and I are selling everything and going cruising this year at 56 & 55. Mentally it is easier to think of it as an open ended sabbatical than is just going to end in different location than you started.
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Old 18-05-2016, 09:03   #23
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Re: Liveaboard cruiser to be and retirement

Ah the retirement question ... it's one of the more common ones we get since even I don't look "retirement age" (yet). "How do you afford it?" The short answer, we can't ... at least not if we want to live like "The Jones."

At 48 and 53 we don't have a pension, nor do we have much in the way of investments. We have modest RRSPs (GICs), and otherwise have some savings. We also generate small income through writing, editing, photography and publication design. But mostly what we have is small expenses.

In a few years my wife will start collecting a small pension. Then in 12 years I get reach financial nirvana when I can collect my very small government pension (CEP). Until then we're going to try and live well, but modestly -- just like we've always done.
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Old 18-05-2016, 20:08   #24
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Re: Liveaboard cruiser to be and retirement

Thank you all so much for all your contributions! I love hearing your thought processes and opinions. I'm sure I will be picking your brains for more advice in the future. So excited to start learning and get out there!

Cheers,
Lee
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Old 19-05-2016, 06:29   #25
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Re: Liveaboard cruiser to be and retirement

7 days into retirement, I have an interesting perspective. But no real experience yet.

About ending up a pauper in some state-run facility: No amount of planning can guarantee you'll avoid that. Anyone who has served in the military has slept in a small room in a government facility with a bunch of other guys or gals their own age. Is that really so bad that you have to give up doing the things you want to do now, while you still can? All your savings can be gone in an instant for any number of reasons.

We have no idea how we will age, but my own observation is that most likely our world will shrink, as will our needs. The example of the folks who gave up round-the-world sailing in their 80s is telling. At some point, you just don't go as far, as fast, or need as much. THAT will be the time to give up cruising.

The fallacy in all the financial planning models I've seen is the assumption that you'll need a level income (in today's dollars) for the rest of your life.

I'm with Mike O on this. Keep your needs in line with your assets. Don't try to amass enough to cover your every conceivable need.

Finally, an observation about financial planners. The ones who heavily advertise and offer free dinner seminars are basically just insurance salesmen. Their goal is to convert all your assets into an annuity (an insurance product) on which they make a huge commission. If you have more money than you'll likely need to live on, putting a portion of it into these products could be a great hedge. Otherwise, not so much.

If you have more assets than you can mange yourself (and I question how you'd amass them without some financial acumen) then by all means, PAY a reputable planner to help.
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Old 19-05-2016, 08:19   #26
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Re: Liveaboard cruiser to be and retirement

"If you have more assets than you can mange yourself (and I question how you'd amass them without some financial acumen)"

Inheritance is one obvious and common explanation that didn't occur to you.
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Old 19-05-2016, 08:45   #27
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Re: Liveaboard cruiser to be and retirement

As for us, we just couldn't make the commitment to full-time cruising. We retire in just under two years and have the finances (and paid off home) to allow that. So, our plan is to start seasonal cruising at that time. We plan to spend 3-4 winter months on the boat and the rest of the year living our normal life back home, hanging out with family, doing some volunteer work, and spending some time traveling. We plan a broad, diverse retirement.

We are not looking beyond a five-year cruising window. I'll be 59 1/2 at retirement and she'll be 57. I just can't count on physical health and strength beyond 65 (but I certainly hope so). So, we're planning and budgeting for five years of seasonal cruising. If we get more ambitious than that, great! Frugal living, a habit of saving, and flexible life goals enable us to cruise more or longer if we choose to.

I guess we're just easing into the cruising lifestyle instead of going full "big bang". That plan makes us sleep better at night.
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Old 19-05-2016, 08:57   #28
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Re: Liveaboard cruiser to be and retirement

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The fallacy in all the financial planning models I've seen is the assumption that you'll need a level income (in today's dollars) for the rest of your life.
Actually, that is only an assumption made by the most simplistic of models. Most of the better ones take into account that your expenses will change as you age.

On the other hand, the REALLY sophisticated models allow for your general living expenses to decline at the same time as your health-care expenses increase. For most of us, as we age, we will require more and more medical attention, which usually comes at some cost.

So, it sort of balances out, though not completely. This is why even the simplistic models are not really that far out of whack with reality, though they may over-estimate your needs to some extent.

I use a simplistic model myself, with the full knowledge of its short-comings. My reasoning is that I would rather over-estimate my needs (and leave a little more to my daughter) than to under-estimate my needs (and become a burden to her).

As regards analysis paralysis, some people present it as an either or. Either you analyze ad infinitum and never actually do, or you just go out an do without any analysis at all. Of course, ideally you would find the middle ground. Do a reasonable amount of analysis, but don't let it paralyze you. Go out and do when you are prepared for the most probable scenarios, with the knowledge that you cannot prepare for every possible scenario.
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Old 19-05-2016, 09:39   #29
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Re: Liveaboard cruiser to be and retirement

Cruiser and retirement...my thoughts are I had a small business for most of my life always wanted to sail but always put it off . The thought make sure you have plenty of money ...health insurance...what if i get ill......Well lost the business...mutual funds...savings....I'm 65 now i don't worry about all that any more last Oct i bought a 22 Catalina I'm still working and getting closer to getting the boat i will live on. I can't be bothered with all the " what if "...life is short and for most of us we are working class hero's go out and cruise have fun enjoy life ...a lot of things can be taken from you but memories are for ever...just take that leap of faith Peace Out :-)
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Old 19-05-2016, 10:54   #30
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Re: Liveaboard cruiser to be and retirement

When the Dr looks you in the eye and says you have maybe 6 months, will you be glad you worked those extra 5 years to get the right boat? Worse yet is to wake up with half of your body not working and you cant talk. Drooling in a wheel chair in some hallway in a rest home is not a goal to look forward to. None of us know how long we will last or what the last part of life will be like. Some of the best bargains in cruising boats are well (overly) equipped boats with all new everything and and an owner that waited too long. Boat yards are full of semi-abandoned boats that some old guy thought he was going to cruise on. Your time to be physically able to cruise is a roll of the dice. You can roll the dice and see what happens or you can get moving. Choices, Choices??? _____Just my2 cents worth. ____Grant.
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