Sold my company - want to sail - but can I?

[tomfl]

There seems to be lots of discussion about what will the economy be like one, five, or ten years from now. I am reminded of one of my favorite quotations from Bernard Baruch:

"The main purpose of the stock market is to make fools of as many men as possible."

Not saying planning is a bad idea, just that while I think there may be some inflation ahead there are lots of guys much smarter than I am who are worried about deflation.

Or as Yogi said:

“It's tough to make predictions, especially about the future.”

[LivingWhale]

Originally Posted by salticrak

Bloody hell mate,you have the money,you keep referring to it.Are you just getting off on telling us how good you have it with yer houses/investments and all?
There are no guarantees in this life,you seem to want that. Buy a bloody 45 ft cat go sailing,put you crap in storage.
But for the love of all things holy just do something and then come and tell us all about it.
You do realize 99% of us on here would love to have your so called ''challenges''
end of rant.

So, I was reluctant to share everything for the reason you state. No, I'm not interested in sharing what I do or do not have, but in order to get the best response, I was trying to be transparent. I apologize if it came across any other way. There are certainly folks doing it on less and some on more. Yes, I would like guarantees, but that's reasonable now is it. So, I have to settle for probabilities. In the multitude of counselors there is safety. I would rather learn from your mistakes than make my own - as much as possible. I would rather go in with the right mindset and be pleasantly surprised if it works out better. Though you candor stings a bit, I appreciate the input and if truly 99% of the people reading this are "living the dream" on less, then you are right that I should just do it, but better to ask, I think. Anyway, please understand that it isn't a brag at all. Some financial planners would say that I shouldn't do it and need more. I just wanted to talk with real folks who are doing it.

[tomfl]

There are tons of threads about the catamaran v monohull debate and one of the things that keeps popping up is how many folks are sailing monohulls because they don't have enough coin of the realm to buy a catamaran. Same goes for guys who cruise for $US500/month as opposed for $US5,000 a month.

The OP seems to be in better financial shape than lots of folks here, but probably not all. I suspect to some extent one reason the OP is in this position is because he is willing to delay gratification in the short term to increase the chances of greater gratification in the long run.

It may be a good idea to buy a home of some type on a waterway in FL so you can keep the boat there and reduce docking costs and then rent it in the winter months so cruising is good. Problem is that while real estate prices in Miami Beach may be increasing for large areas in Florida this is not the case. It might be a good idea for the OP to rent an apartment close to docks some where and hang around folks who live on a boat and get some real world experience. One thing that becomes obvious is the huge difference in economic conditions of folks who live on boats.

It will also give the OP a chance to checkout boats to some extent and get a better feel for what best suits his needs.

[salticrak]

Fair enough mate,but as you know surely,money gives you choices.Dare i say more choices than most. All the financial gurus in the world could not foresee the meltdown the worldwide economy has endued over the last while.
One only has to look at the crap that is going down with the commonwealth bank here in Australia and their dodgy financial advisers.
Carpe Diem.

[LivingWhale]

Originally Posted by salticrak

Fair enough mate,but as you know surely,money gives you choices.Dare i say more choices than most. All the financial gurus in the world could not foresee the meltdown the worldwide economy has endued over the last while.
One only has to look at the crap that is going down with the commonwealth bank here in Australia and their dodgy financial advisers.
Carpe Diem.

Agreed, but if one does their homework and truly listens to others, it's amazing what can be avoided. Even in the financial collapse here in the US in 2008 there were warning signs and most loses occurred late that year through 2009. Of course, all of that is bigger than us and we just have to try and avoid being the victims. More to the point, before setting out on an adventure, it's wise to store provisions, rather than just saying "it will work out". So, I guess you could say I'm trying to properly provision for my journey and would hate to run out of Vegemite!

[salticrak]

good luck with your endeavours mate.May i suggest a name for your boat?
s.v. lookb4Uleap ?

[LivingWhale]

Originally Posted by salticrak

good luck with your endeavours mate.May i suggest a name for your boat?
s.v. lookb4Uleap ?

Love it haha! Good luck to you as well...I may see you out there

[JPA Cate]

LivingWhale,

Sir, you are in a good position financially, if what you have written is correct.

We've had three friends in different parts of the world whose cruising plans collapsed because the business they sold defaulted on their payments. In one case it was an airplane repair business and the buyer sold off all the equipment, and the IRS went after our friends for the taxes while the other guy left the country. In another, I think the folks didn't run the numbers realistically. In the third, it was still complicated, but they got away later, after the principals returning and training the more promising of the former employees to do what they had done, and the employees are buying the business. Guess who gets called upon, still--after 10 yrs.--when there's a problem.

So I guess what I'm saying, is it might be a good idea to have someone impartial review your situation in detail and not on the internet, in order to be sure you're not vulnerable to the kinds of situations mentioned above.

Ann

[JPA Cate]

LW":

I'd also like to second the suggestion, above, that you start smaller with the cat, and use it a bit. That experience will place you better for choosing the boat you'll want for the longer haul.

The physical forces involved in sailing the really large cats are huge, and difficult to have a feel for if you have not been a serious sailor.

Ann

[sailorboy1]

I think you trying to move too fast and spending too much time on this thread.

I think you should take a deep breath and spend some time reading other related threads and get a handle on what you really what to do, should do, need to do, and the costs involved for each.

[LivingWhale]

Originally Posted by Ann T. Cate

LivingWhale,

Sir, you are in a good position financially, if what you have written is correct.

We've had three friends in different parts of the world whose cruising plans collapsed because the business they sold defaulted on their payments. In one case it was an airplane repair business and the buyer sold off all the equipment, and the IRS went after our friends for the taxes while the other guy left the country. In another, I think the folks didn't run the numbers realistically. In the third, it was still complicated, but they got away later, after the principals returning and training the more promising of the former employees to do what they had done, and the employees are buying the business. Guess who gets called upon, still--after 10 yrs.--when there's a problem.

So I guess what I'm saying, is it might be a good idea to have someone impartial review your situation in detail and not on the internet, in order to be sure you're not vulnerable to the kinds of situations mentioned above.

Ann

Good advice. There is some risk still involved, but it is less now after 10 months and seeing how the new owner will fair. Ideally, it would be great to not to have to count on that money, but we will some. So far, I've had no involvement and the company is doing as good or better than when I was there. Regardless of whether I'm on land or at sea, if it did fail, I would have to seek other income or get very conservative, so why not be at sea! As for talking to a professional regarding my situation and not getting advice from the internet, certainly I'm seeking counsel in multiple places. The purpose of this post is a budget test. While here, I've put out some other thoughts as there seem to be others in similar situations and that's valuable input. I will not solely rely on input here, but I'm seeking out counsel in many areas. As the old southern saying goes, I eat the chicken and spit out the bones. Yes, there's risk. Yes, things could happen. But, I'll just have to weigh the options and make the best decision. I'm reasonably fit and feel if someone else can work the boat, then I can certainly learn as well. Also, I do have boating experience, but not with anything this large. I'll take it slow. Thanks for your thoughts!

[LivingWhale]

Originally Posted by sailorboy1

I think you trying to move too fast and spending too much time on this thread.

I think you should take a deep breath and spend some time reading other related threads and get a handle on what you really what to do, should do, need to do, and the costs involved for each.

Again agreed. When you start a thread though, I feel it would be rude not to engage and respond. Given my situation, I'm not doing a lot, other than planning, so this forum is a good mental reality check. Certainly don't want to belabor it though. You and others have been very helpful to provide balance and real world advice - I'm extremely appreciative!

[cwjohm]

Good advice from Sailor.

Some other words of caution.

Caution 1

I sold a company and retired at 35. Was bored and back at work within a year.

I sold a company and retired again at 50 and went and did a postgraduate degree at 50. After finishing I was bored after a year and went back to work.

I will retire again next year at 59 but this time I will be do management consulting from the boat.

The bottom line is you cannot simply turn your brain off if you are wired a certain way.

Caution 2

Started with a 7 yo mono

Went to a 2 yo 44 cat.

Now about to take delivery of a new cat.

The bottom line is that you need to understand your needs and desires. A 10 yo boat is very different from a new boat. A 35 cat is very different from a 44 which is very different to a 60.

You can only determine this by living on it for a reasonable period.

Caution 3

Like you I have a house and a boat. My partner has made it quite clear that she will long term cruise (up to say 6 months at a time) but will not reduce our lifestyle. It costs us $6500 per month base costs plus $2000 per month for the boat, $2000 per month for the house plus any other additional costs like travel. We still have one child at home and have four others who let us just say are not financially independent.

Bottom line is that you have to be realistic about your costs. You need to measure it NOW and not necessarily assume it will decrease in the future. Based on my discussions with others this is a trap that many fall into.

It would be great if at a certain age life could just stop and you could sail off into the sunset. For most the reality is very different.

[LivingWhale]

Originally Posted by cwjohm

Good advice from Sailor.

Some other words of caution.

Caution 1

I sold a company and retired at 35. Was bored and back at work within a year.

I sold a company and retired again at 50 and went and did a postgraduate degree at 50. After finishing I was bored after a year and went back to work.

I will retire again next year at 59 but this time I will be do management consulting from the boat.

The bottom line is you cannot simply turn your brain off if you are wired a certain way.

Caution 2

Started with a 7 yo mono

Went to a 2 yo 44 cat.

Now about to take delivery of a new cat.

The bottom line is that you need to understand your needs and desires. A 10 yo boat is very different from a new boat. A 35 cat is very different from a 44 which is very different to a 60.

You can only determine this by living on it for a reasonable period.

Caution 3

Like you I have a house and a boat. My partner has made it quite clear that she will long term cruise (up to say 6 months at a time) but will not reduce our lifestyle. It costs us $6500 per month base costs plus $2000 per month for the boat, $2000 per month for the house plus any other additional costs like travel. We still have one child at home and have four others who let us just say are not financially independent.

Bottom line is that you have to be realistic about your costs. You need to measure it NOW and not necessarily assume it will decrease in the future. Based on my discussions with others this is a trap that many fall into.

It would be great if at a certain age life could just stop and you could sail off into the sunset. For most the reality is very different.

Very helpful. Your cautions are very valid, real and true. Lots to consider and digest. Thank you!

[kmacdonald]

It seems you are concerned if your money will last. If its that tight you could buy the sailboat now and cruise a few years without the house and save some more money. You could always rent a nice waterfront place offseason really cheap if need be. I would also be concerned if that 20 year payout on your business actually works out for 20 years. The market is at all time highs now and has produced huge returns for quite a few years but won't continue-----may be time to start selling off.