Might or Might not have made the biggest Mistake of my life

[89zorro89]

ol1970,

Thank you for your reply but I have to ask, "what percentage of the population especially in their 30's and 40's do you think actually lives within your stated parameters and percentages"? Seriously? to have your home as only 20% or less of your net worth? Since 2008 most home owners in their 30's and 40"s have only been in their home less than 10 years.

Statistics show that for those 35 or younger the typical net worth amount is $6,682 (enough for two months of expenses in any large metro area). For those between 35 and 44 the mid-range is $35,000 (enough for a new car). Between 45 to 54 it jumps to $84,000 (enough for four years of college tuition for one kid at some low end universities). From 55 to 64 it jumps to $144,000 but this is largely due to housing (the same goes for the over 65 age range with the typical net worth figure jumping to $171,000). The average home owner between the age of 45 and 54 has just $59,360 as equity in their home. That is a staggering 70.88%, well over your suggested <20%.

[boatman61]

46 posts and no comments from the OP.. methinks
Unless I missed one..

[jaygatsby]

Thanks for all the advice. I've read through and thinking of just taking a year off to cruise and get centered. I need to figure out what to do next career wise. Maybe do some dating or at the least have some fun.

In regards to vessel size she is not hard to single hand under power or under a conservative sail plan.I'm sure a crew would be needed for racing or (sailing) in heavy weather. I personally do not want to live on a vessel smaller than 45 feet as I would like room to take friends and their families sailing and still have room to get away from them when I want.

I had not thought of the charter option and have a 500 ton lic with a sailing and towing endorsement. It has lapsed so I'd need to go get it renewed. My only concern with that is ware and tear on the boat from having regular guest. But I have been reading I can write off the loss if I incorporate and don't get enough charters a year to exceed maintenance cost which seems appealing.

I started putting all my stuff up on craigslist as of this morning and plan to break my apartment lease if I can't find a sublet.

As for people saying I have it easy I'd say otherwise. I was once a completely broke day dreamer. Now having some perspective from what recently happened I can say now having the opportunity does not mean I'm free of future worry. Starting, Building and Selling a business for a profit is not just a matter of doing it once then doing it again. The stars aligned, every decision we made came without almost any consequence and it all happened very fast. (We (partners) were all very lucky) Now having hindsight of knowing what it takes I'm not telling myself --- well if it all fails I'll just rinse and repeat what got me to the position to begin with. Unfortunately that is almost never the case for most people.

As for the few that got on me about bragging about beating my ex wife out of getting anything from me. I would not be so quick to judge not knowing that situation. 100's of thousands of dollars over 8 years I spent putting her in rehab for drug and alcohol abuse. Me having to work 2 additional jobs while building my previous business because sacrificing for a better life was not something she was interested in. Sitting up night after night in the hospital and countless days of work missed due to rehab and hospital visits that amounted to nothing more than her trying to manipulate me into feeling sorry for her. I think my win in the divorce was justified because I missed out of my 20's and I'm sure plenty of other women that would have treated me a lot better. She got a house with little left owed on it for virtually doing nothing but torturing me. I think she was the real brilliant business person in the relationship. She is now a physically attractive 29 year old home owner in a major city with a $600 dollar a month mortgage on a $750,000 dollar home. I think she'll do just fine in the position I left her in given working at a Dairy Queen for $12 an hour will be enough to keep her sheltered in a affluent neighborhood and afford her all the Alcohol and Pills she'll ever need.

[JPA Cate]

Jay Gatsby is the name of a character in a book by David Carroway: "The Great Gatsby," which is why I suspected it was a troll.

A.

[jaygatsby]

Originally Posted by Ann T. Cate

Jay Gatsby is the name of a character in a book by David Carroway: "The Great Gatsby," which is why I suspected it was a troll.

A.

One of my favorite novel characters of all time. As for being a troll ironically enough I am a troll. The business I helped build and sold was basically teaching people how to be profitable internet trolls. Not in the negative, take advantage of people kinda of way though. We charged money to teach people how to avoid being trolled and intern trolling the trolls.

[jaygatsby]

Originally Posted by 89zorro89

ol1970,

Thank you for your reply but I have to ask, "what percentage of the population especially in their 30's and 40's do you think actually lives within your stated parameters and percentages"? Seriously? to have your home as only 20% or less of your net worth? Since 2008 most home owners in their 30's and 40"s have only been in their home less than 10 years.

Statistics show that for those 35 or younger the typical net worth amount is $6,682 (enough for two months of expenses in any large metro area). For those between 35 and 44 the mid-range is $35,000 (enough for a new car). Between 45 to 54 it jumps to $84,000 (enough for four years of college tuition for one kid at some low end universities). From 55 to 64 it jumps to $144,000 but this is largely due to housing (the same goes for the over 65 age range with the typical net worth figure jumping to $171,000). The average home owner between the age of 45 and 54 has just $59,360 as equity in their home. That is a staggering 70.88%, well over your suggested <20%.

The problem with statistics is they are exactly that. One thing I slightly disagree with is spending power ect... for example if you make $5000 a month and live in a major city where $4000 a month gets you into a top end apartment building living with the %1 of that city your odds will significantly rise that opportunity to make more than $5000 a month will present itself. Depending on your goals sometimes spending beyond your means is a necessary thing. Opportunity cost is a real thing. The unfortunate part is that many people who overspend on such opportunities rarely take advantage of them and end up in a worse position than when they started. I personally am in a dilemma of deciding whether I really want to take advantage of the opportunity I just created for myself.

For example I'm sure with the vessel I purchased I could post up in a fancy Marina and entertain wealthy people over lobster dinners and day sails intern building a network to invest in some future idea I might have or get involved in one of their ideas. Therefore my investment in this vessel would pay for itself. Unfortunately mentally right now I'm not interested in business or networking. For my current mentality I think the advice given to me is pretty sound being the fact I could get the same intrinsic experiences on a $50k boat as I could on the one I just currently purchased.

[Don C L]

Originally Posted by jaygatsby

For my current mentality I think the advice given to me is pretty sound being the fact I could get the same intrinsic experiences on a $50k boat as I could on the one I just currently purchased.

Did I just hear you solve the dilemma?

[thebootlegger]

I think ol1970 had some great points. .. Goo luck.

[Cadence]

Originally Posted by jaygatsby

The problem with statistics is they are exactly that. One thing I slightly disagree with is spending power ect... for example if you make $5000 a month and live in a major city where $4000 a month gets you into a top end apartment building living with the %1 of that city your odds will significantly rise that opportunity to make more than $5000 a month will present itself. Depending on your goals sometimes spending beyond your means is a necessary thing. Opportunity cost is a real thing. The unfortunate part is that many people who overspend on such opportunities rarely take advantage of them and end up in a worse position than when they started. I personally am in a dilemma of deciding whether I really want to take advantage of the opportunity I just created for myself.

For example I'm sure with the vessel I purchased I could post up in a fancy Marina and entertain wealthy people over lobster dinners and day sails intern building a network to invest in some future idea I might have or get involved in one of their ideas. Therefore my investment in this vessel would pay for itself. Unfortunately mentally right now I'm not interested in business or networking. For my current mentality I think the advice given to me is pretty sound being the fact I could get the same intrinsic experiences on a $50k boat as I could on the one I just currently purchased.

I had said only you could decide. It sounds like maybe you have. I hope you can get your investment back and the brokerage fee. Keep rampant inflation in mind.

[jaygatsby]

Originally Posted by Don C L

Did I just hear you solve the dilemma?

Yeah, pretty much, did not think before I purchased, hindsight is 20/20. My purchase does not reflect my overall goal which was just to escape and get some clarity for a period of time.

[buzzstar]

In my opinion, you overbought, but definitely not the mistake of a lifetime, even if a mistake at all. You have lots of options still. First, only YOU can really decide if what you acquired is what you really want. Spend some time thinking of all the plus and minus points. Hold off any selling until you've sailed the vessel -the size suggests need for a crew, which is always something to consider, particularly as a added expense, whether it be salary or provisions or other expenses. Still try it, then maybe decide. Meanwhile you will have gained knowledge about yourself the vessel and costs from mooring or a marina to insurance, hull cleaning and any crew, etc. Most of all, even if it is the mistake of a lifetime, there is still will be a lot left (the vessel is not salvage) and what a ride.

Edit: Written before some more recent posts. Oh well.

[Dave22q]

$300/month should be very doable but not at a big spender's lifestyle. My concern is that you spent too much money for too much boat. You and your partner (when you acquire one) should be very comfortable on anything over 33' or so. Your 53 is rather large for single handing. Heavy weather is not always predicted. Most importantly, assuming your surveyor was correct on all accounts you may not start spending on maintenance for a few years but these boats are not cheap to maintain when you need to spend it will make a significant hole in your monthly budget.. I would seriously consider taking a loss if necessary, investing $100k of the sale proceeds to increase your income and buying in the 35-45' range with the remaining money. This should give you an extra $5-800 /month for the unexpected and the maintenance will be proportionally lower.
All that said, these should be the worst of your problems. Any error you made is very reversible so relax and enjoy. You are in a good situation.

[89zorro89]

[QUOTE=jaygatsby;2273305]The problem with statistics is they are exactly that. One thing I slightly disagree with is spending power ect... for example if you make $5000 a month and live in a major city where $4000 a month gets you into a top end apartment building living with the %1 of that city your odds will significantly rise that opportunity to make more than $5000 a month will present itself. Depending on your goals sometimes spending beyond your means is a necessary thing. Opportunity cost is a real thing. The unfortunate part is that many people who overspend on such opportunities rarely take advantage of them and end up in a worse position than when they started. I personally am in a dilemma of deciding whether I really want to take advantage of the opportunity I just created for myself.

I don't disagree that networking with those who have already achieved a higher lever (higher than oneself) of success can lead to opportunity. However for most, opportunity is 20/20 hindsight. They don't see it until it's too late and only then does it become 20/20. The majority of those that are successful at networking in higher circles and spotting opportunity already have it within them to achieve it on their own. In other words they are the ones who are already mentally predisposed and have what it takes to achieve success how ever they want to define it.

PS. this is getting way off topic and I agree it sounds as though you have been giving this whole prospect great thought and are on the path that is right for you. Wish you all the best and perhaps we'll anchor alongside one day for a sundowner.

[JoJoLady]

QUOTE=jaygatsby;2272792]Long story short, got a divorce (no kids) age 33 last year, I got the cruising bug and spent about 6 months searching for a good boat without a budget in mind.

I lived on and worked on private yachts from age 18 - 25 where I met said ex wife.
Ğ




Got lucky with a company I helped start and sold it late last year (said ex wife got nothing, thanks lawyers far and wide)

I made a few hundred thousand south of 7 figures and cashed out 2 weeks ago decided to pull the trigger compulsively on a 1989 Little Harbor 53 FSBO for about 390k, she is loaded and was recently refitted including new teak decks, standing, running rigging, sails, full electronics package, topsides repainted and interior all stripped and varnished. She was repowered in 2014 and also rewired. In 2015 had all her canvas and upholstery redone.

Surveyor convinced me I was getting the deal of a lifetime and the boat would easily list at 550 - 600k on the market as is.

I have about 410k left total with a income of about 3100 - 3500 a month I get from part-time (remote) consulting I do for the company we sold off.

Everything works and the boat is dry as a bone having been taken care of by a professional (full-time) Captain for the past 10 years.

Now I'm having buyers remorse. Ex-wife got the house, I have no assets right now. I'm thinking of selling off the remainder of junk I've acquired over the years. Leaving my place in Texas and just taking off cruising.

My worry is the money I have left is not enough to keep me sustainable for the long term cruising life. Now contemplating maintenance + dockage expenses (will need wifi to keep consulting/income) ect.... other expenses, unkowns ect... ect... ect....

I don't know what to do now. I think I've bitten off more than I can chew. I have a lot of life left at the age of 33 - no where near retirement age. I'm sure I could sustain cruising for a few years with what I have left plus the consulting income. But I'm afraid once I come to the end of that what will I do next..... work wise to maintain such a vessel... lifestyle .... ect....

What position are people at in life when they make the leap...? The questions and anxiety running through my veins is crippling me right now. My family thinks I've lost my mind completely but I have no real desire to do anything else at the moment. I know I'm very lucky and have a good opportunity with what little finances I have left but I don't want to be that guy... 5 - 7 years from now looking back and saying to myself (broke) (unemployed) living on a giant liability at age 40 saying what in the **** was I thinking!

Suggestions? Advice? heard of similar experience or had one like this? How dumb was I?

I've been sitting at my computer all day contemplating calling a broker.

Thanks in advance for any advice, suggestions ect...[/QUOTE] Wow
sounds like some pretty heavy decisions. Have you thought about purchasing a boat slip. Our marina in Bradenton has several slips for sale. It would certainly cut down on your living costs. You could run a consulting business from there and sail when you wish. If you travel for several months you can rent out your slip. Don't give up your dream just yet. There may be a first mate in your far off future!! 😎

[ol1970]

Originally Posted by 89zorro89

ol1970,

Thank you for your reply but I have to ask, "what percentage of the population especially in their 30's and 40's do you think actually lives within your stated parameters and percentages"? Seriously? to have your home as only 20% or less of your net worth? Since 2008 most home owners in their 30's and 40"s have only been in their home less than 10 years.

Statistics show that for those 35 or younger the typical net worth amount is $6,682 (enough for two months of expenses in any large metro area). For those between 35 and 44 the mid-range is $35,000 (enough for a new car). Between 45 to 54 it jumps to $84,000 (enough for four years of college tuition for one kid at some low end universities). From 55 to 64 it jumps to $144,000 but this is largely due to housing (the same goes for the over 65 age range with the typical net worth figure jumping to $171,000). The average home owner between the age of 45 and 54 has just $59,360 as equity in their home. That is a staggering 70.88%, well over your suggested <20%.

Hi Zorro, well first off if you think about it who wants to be average? Like you state "average" is spending as much or more than you make, driving a fancy leased car and living in a house that is way too big for what you need. If the OP is for real, he has an aptitude for business and being a high earner...I only commented because I have a similar background and have been there and done that.

Regarding my % of net worth rules of thumb I completely understand that average people think its crazy, but its simply a formula for success and financial independence. I get taking time off while you are young and healthy believe me, but being prudent in your choices while you are young is paramount to the mitigating the challenges later in life. The stats you mentioned above are probably spot freaking on, but they make my skin crawl...average people are "struggling" to make ends meet but have a $600 iPhone, a mortgage that takes up 40% of their take home pay, drive a new leased car, eat out 4 nights a week, send their kids on a travel soccer team, and save 5% of their income and think life will be just fine...well financially it won't.

Moral of the story, don't be average.