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Old 14-10-2009, 19:34   #61
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vegasandre and calliope30,

If you have not yet decided where to move to, consider the weather you AND YOUR FAMILY want to experience, then move to a place that has that weather. My wife and I were in San Diego for 12 years and loved it. Then we moved to Richland, Washington, for my second career of 15 years and soon grew to hate cold weather and cold water. Thus when we started cruising we headed to the Caribbean. Granted we proceeded slowly through Mexican waters to enjoy some premier cruising grounds, but our ultimate destination was always the Caribbean. We may eventually like to cruise the Mediterranean and South Pacific if we can handle cruising life that long.

Our one big "do-over" would have been to cruise with our two boys (now 29 and 32)
before they got caught in the rat race of earning their own way, having their own homes, getting married, etc. We have seen many families with young children who were learning so much more about life and the world than their counterparts stuck in land based schools. Unfortunately, that option doesn't fit with your dislike of home schooling. Hopefully your choices will give you the opportunity for extended cruises that will provide your children many valuable experiences.

Best of luck in your cruising future.
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Old 14-10-2009, 20:04   #62
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Why would you borrow the money to buy the Leopard? Interest is a guaranteed expense. There are NO guaranteed investments that come close to 6.25% so you are better off paying off the boat and pocketing the monthly payments.

There are a couple of threads here about owning charter boats that you may want to read. Also, check out the Leopard owners group.
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Old 15-10-2009, 14:34   #63
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Yep, I've already done these sort of calculations...& by the way, where are you getting an 8% diversified portfolio return???....and the answer is that 90% of Americans have no retirement future. At least not the one they think about.
The effect of inflation will kill most folks' dreams....I hear the rediculous talk of a goal "saving a million by the time you retire". ( Not on this forum, but in the general press.) What they never say is that in 20 years time, that million will feel like 200k of today's money. Taxes will be higher, ( anyone want to bet on how long Cap Gains stays at 15%? ) so poverty waits for most in the guise of the Walmart greeter.
Inflation linked annuities yield about 3.5% these days....depending on one's annual living requirement.... so, after taxes.....just how big a nest egg will most of us need?
It's all so damned depressing...which is why the mainstream financial press will not touch it. imho
Very true. I expect 15% cap gains to be a thing of the past which is why I used 25% for my calcs. As for 8% returns that's the historical long term return of the S&P 500. So you will not get that kind of return without adding risk to your portfolio in the form of equities. I like whole index funds. There are a bunch of low fee ETFs and mutuals that you can get (check out Vanguard). You want to diversify some, but you will need to keep your equity exposure high if you have less than $5,000,000 invested. Something like:
45% large cap equity
15% small cap equity
20% international equity
15% fixed income (bond fund ETFs are good)
5% cash
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Old 15-10-2009, 14:50   #64
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Originally Posted by rigamarole View Post
Why would you borrow the money to buy the Leopard? Interest is a guaranteed expense. There are NO guaranteed investments that come close to 6.25% so you are better off paying off the boat and pocketing the monthly payments.

There are a couple of threads here about owning charter boats that you may want to read. Also, check out the Leopard owners group.
LeopardCat-subscribe@yahoogroups.com
I agree. Whenever possible you should pay cash for depreciating assets.

BTW, vegasandre you might want to take a look at the Jaco and Hermosa beach areas of Costa Rica as a potential retirement location.
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Old 17-10-2009, 16:38   #65
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-we do not like to live frugally but dont spend crazily by any means.
You can spend or go cheap anywhere in the world!

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Originally Posted by vegasandre View Post
-we dont want to homeschool(I hated homework as a kid and my wife would go nuts)
Stay home or carry a nanny/teacher around every where you go.

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-we both hate cooking -but can get by(yeah I am being honest-so shoot me for it)
Nobody hates cooking, everyone hates cleaning up after. Food is Life, Life is Food. Stay home
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- I can fix things if shown once, but cant usually figure it out unless I have been shown
No one has taken apart everything that could break without taking apart everything that's broke. Call me I'll come out and fix it.

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Old 18-10-2009, 10:13   #66
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Old 18-10-2009, 10:18   #67
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vegasandre and calliope30,

My wife and I were in San Diego for 12 years and loved it. Then we moved to Richland, Washington, for my second career of 15 years and soon grew to hate cold weather and cold water. Thus when we started cruising we headed to the Caribbean.

Our one big "do-over" would have been to cruise with our two boys (now 29 and 32)
before they got caught in the rat race of earning their own way, having their own homes, getting married, etc. We have seen many families with young children who were learning so much more about life and the world than their counterparts stuck in land based schools. Unfortunately, that option doesn't fit with your dislike of home schooling. Hopefully your choices will give you the opportunity for extended cruises that will provide your children many valuable experiences.

Best of luck in your cruising future.
You sound like my kind of guy. San diego appeals to me . Cloudy and rain -and cold for more than 3 consecutive days makes me want to go out and drive my car into a lake(Sorry International Drifter). The Issues we are having with San Diego is the still high cost of living , high state taxes,crowds,traffic and extremely materialistic inhabitants. If I could somehow fix half those items I would be there now. As far as the Kids Home schooling thing it would be tough for us and My boys are now heavily into baseball also and missing a couple years of this I feel would be selfish on my part despite the obvious benefits of life experiances ,thats why we decided the Buying a Moorings Leopard 46 would be a great compromise for now and see what happens after the five years.

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I agree. Whenever possible you should pay cash for depreciating assets.

BTW, vegasandre you might want to take a look at the Jaco and Hermosa beach areas of Costa Rica as a potential retirement location.
thanks Guys for the advice - and you are correct. However I have decided that in the long term to facilitate the passive income for hopeful future freedoms It would be better off keeping money most invested and using money to buy 5-10 houses/condos for cash in next couple years as that is my specialty anyway. I can get a very high ROI 10-18% .

But the funny part about the financing anyway for the boat-its not too easy even with a 800 credit score and large income /assets due to me being self employed. I am very surprised. But they are working on it still . Going over everything like its a nuclear fusion equation.

What ever happened to that Easy stated income thing?


Also I like Costa Rica- However I feel this would be a place to look at after kids have flown the coup .
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Old 18-10-2009, 18:38   #68
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Cloudy and rain -and cold for more than 3 consecutive days makes me want to go out and drive my car into a lake(Sorry International Drifter).
No apologies necessary! You wouldn't be the first. At the far end of the downtown Seattle ferry dock (a couple hundred feet down -- yep, it drops off fast), somewhere down there is one of those big old Caddie Eldorados. Fellow was the first on the boat one day and just gunned it, right down the tunnel and off the other end! (After that is when they started putting chains across the deck.) Nobody knows why he did it, and the body (and car) were never recovered.

Then, there's the famous Steele Dodge at Lake Crescent: The Steele Dodge or Sherman Wreck, Lake Crescent - Dive Site Review
And the Warren Wreck, also at Lake Crescent:
The Warren Wreck, Lake Crescent - Dive Site Review

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Old 18-10-2009, 20:01   #69
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You can buy back almost anything, except time. You could be dead tomorrow. Simplify your life, and do it while the kids are young, and you are healthy. You will never regret it!.......i2f
Thank you I2F for a great quote.


I am actually going to write that on my board in the office tommorow.


Int Drifter-that is funny. not surprising ,but funny.
Wifey loves it up there-though sometimes she can get slightly impulsive. Like that time in 2006 when we took the fam up to Yellowstone and Montana in the Summer. All I heard about was "lets move to Montana" for like 5 months. So I did what all good husbands should do- hooked up with a realtor in Bozeman and booked a house hunting excursion -IN DECEMBER. Yeah it was great looking at the houses when it was 8 degrees F (-13 cel for the rest of the world) and ten inches of snow on the ground and snow coming down sideways. That idea changed pretty quickly.

Thats why I always tell everyone if you fall in love with somewhere- make sure you visit it during the worst possible time of year-and if you still feel the same - then maybe you have found your place.
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Old 18-10-2009, 20:05   #70
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I have decided that in the long term to facilitate the passive income for hopeful future freedoms It would be better off keeping money most invested and using money to buy 5-10 houses/condos for cash in next couple years as that is my specialty anyway. I can get a very high ROI 10-18% .
If you have $2M in-hand, you should seriously consider buying multifamily properties. SFRs are never that great an investment. Loose a tenant and you’re making the mortgage payment all by yourself. Financing is lousy. Management is too much trouble. I wouldn’t touch MF in Vegas now, they may never recover (lousy business model). I finance multifamily and can tell you, there are some awesome opportunities now. You can find deals where the previous owners knew they were loosing the properties, took all the cash out and abandoned them. Many investors are waiting for an RTC-type blow out sale but when and if it happens the competition will be insane, driving prices up again. I know of several deals in Phoenix where you can purchase the properties, reposition them and refinance close to 100% of your investment out – with government guaranteed loans! Recycle that scenario a couple times and let the management company send you checks each month. Never look back, never read another copy of the Wall Street Journal......

You like heat, Phoenix has it in abundance. You know real estate, this shouldn’t be too much of a leap.
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Old 19-10-2009, 04:30   #71
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Do what I did; invest in a boatyard + good idea (carbon fibre mono hulls with cruising interior was mine) In such way you can still work a bit as stop working is impossible unless you want a heart attack + become more knowledgable about yachts and yachting

you can sail (test with potential owners) +meet great people(yachties) + get rid of your money.......

Then with the left over buy an old cruising yacht based on your experience and put the experience into practice

5 years well spent
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Old 20-10-2009, 13:14   #72
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I fully retired in my 40's.

I didn't make a Wall Street salary but rather my wife and I made a concerted effort over the past 15 years to make ourselves independent by controlling our expenses. The first big decision was NO DEBT - which in reality meant we pounded the mortgage down (neither of us drove a car for about 12 years - mortgage gone in under 5 years because we had a big deposit and hammered the debt away). We took public transit. We took modest holidays. We read a hell of a lot about investing. And neither of us feel we missed a thing.

If the OP is truly free at 43 there is a lot you can do - however - it doesn't depend upon your capital nearly as much as it depends upon your income. Big boats have big running costs.

Our rule of thumb is to keep the capital cost of the boat at under 10% of your assets.
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Old 21-10-2009, 15:43   #73
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Heh. Andre, you can work five more years and if you are lucky not to get an awakening heart attack you will then decide that you actually need a bigger boat and a nicer house...
Security that you are chasing does not exist in nature. For $2m you could live a real life starting from tomorrow. Just sail away if you really love it.
Unless the boat and the house are just another gadgets to make you feel "happy" for a while.

I fully agree with muskoka yet I think that it is far better to retire in your early 30's
Make your life simple!
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Old 21-10-2009, 21:01   #74
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Our rule of thumb is to keep the capital cost of the boat at under 10% of your assets.
i do not know anyone who managed to get close to the 10% muskoka mentioned. it is a very prudent number, for sure. good if you can make it, but everyone i know came always close to 20-25% of their assets... my plan is also to aim for around 15%, but not be surprized if it hits 25%
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Old 21-10-2009, 21:31   #75
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i do not know anyone who managed to get close to the 10% muskoka mentioned. it is a very prudent number, for sure. good if you can make it, but everyone i know came always close to 20-25% of their assets... my plan is also to aim for around 15%, but not be surprized if it hits 25%
Everyone will have a different budget, however the original poster mentioned he had something in the order of $2 million. Anyone with over $1 million should be able to buy a nice yacht for 10% of that which then leaves them 90% of their capital base to fund their lifestyle.

Retirement takes a lot of money if you're going to live another 30-40 years! And you really don't want to sink an overly large proportion of your weath into a cash-hungry, depreciating asset.
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