How much in the bank before setting sail ?

[valhalla360]

Originally Posted by RokNRich

Again, not asking for a budget, have read many budget threads, etc.....asking what you would consider "enough" to have in the bank before setting sail....

"enough" is entirely dependent on the budget. They are not separate questions.

If you can maintain the boat and do everything you want to do (including visa, entry fees and other misc costs) on $500/month, $12k would be fine for a 2yr cruise.

If you need $50k/month, figure on $1.2mil for a 2yr cruise.

Tell us your budget and it's simple math.

If you are just looking for a round number, middle class cruising on a 35' boat, the numbers usually range around $2-3k per month but that goes with a lot of assumptions.

[Pelagic]

Originally Posted by valhalla360

"enough" is entirely dependent on the budget. They are not separate questions.
.

Agreed, a Budget is for "expected" expenses...and that is a function of lifestyle and monthly averages .....but I think what the OP is asking for is an "Emergency Fund" in the bank to cover significant and unexpected or catastrophic costs, that requires immediate liquidity.

At least, that is how I interpret his question

[Strait Shooter]

Originally Posted by Pelagic

Agreed, a Budget is for "expected" expenses...and that is a function of lifestyle and monthly averages .....but I think what the OP is asking for is an "Emergency Fund" in the bank to cover significant and unexpected or catastrophic costs, that requires immediate liquidity.

At least, that is how I interpret his question

And you really think 200k is needed for emergencies? I'm going to have to plan on smaller emergencies I guess.

[Pelagic]

Originally Posted by Strait Shooter

And you really think 200k is needed for emergencies? I'm going to have to plan on smaller emergencies I guess.

I think the worst legitimate expense would be a medical air evacuation for someone on life support over a few thousand air miles.
Hopefully your insurance will reimburse, but funds on hand when every second counts, is a decision we have to make

[daletournier]

Originally Posted by Pelagic

I think the worst legitimate expense would be a medical air evacuation for someone on life support over a few thousand air miles.
Hopefully your insurance will reimburse, but funds on hand when every second counts, is a decision we have to make

Although I have the money to pay my house off outright I choose to leave the funds in an offset bank account. This enables me to be the same as morgage free (no payments) but considerable reserves to draw on in the worst case scenario.


Sent from my vivo Y35 using Cruisers Sailing Forum mobile app

[valhalla360]

Originally Posted by Pelagic

Agreed, a Budget is for "expected" expenses...and that is a function of lifestyle and monthly averages .....but I think what the OP is asking for is an "Emergency Fund" in the bank to cover significant and unexpected or catastrophic costs, that requires immediate liquidity.

At least, that is how I interpret his question

I have separate categories in my budget for emergencies:
- Repair Budget (regular minor maintenance)
- Major Replacement Budget (new engine, sails, etc...)
- Health Care Budget (covers up to a few thousand while the insurance company wades thru things)
- General emergency fund
- Insurance (that should cover really big dollar items like major medical events, boat gets crushed by megayacht, etc...)

While there are true emergencies, most of what people call emergencies are just expected expenses that they failed to plan for.

Probably more importantly to this discussion: I think you will find a strong correlation between those on $500/month being fine with minimal emergency fund budgets. If your $5k boat goes down, you don't need $500k to get a replacement boat.

On the other hand, if you are spending $5k/month, you probably have a boat worth north of $100k (maybe by a lot). $5k in reserves, can be gone in the blink of an eye particularly if you pay for repairs by outside services.

So in the end, it still all ties back in with budget and lifestyle you expect.

[NoahTreat]

OP. How big is your boat? Money needed in the bank is different for a 31' vs 60' boat.

[ol1970]

Y'all are getting all caught up asking all the right questions to form a thoughtful articulate response when what the OP clearly is looking for is irresponsible internet speculation.

The correct answer , regardless of any of the silly details, is obviously: 3k/month x 18 months (odds are you'll change/adjust your plan after that long anyway) +1k/monthx18 months (oops I didn't plan for that) + $50k holy hell I can't believe that just happened type emergency/safety net. So that is $122k, not touching your other investments and replenishing the kitty for 3 months each year when going back to work.

you're welcome, now just take off already before you talk yourself out of it

[valhalla360]

Originally Posted by ol1970

Y'all are getting all caught up asking all the right questions to form a thoughtful articulate response when what the OP clearly is looking for is irresponsible internet speculation.

The correct answer , regardless of any of the silly details, is obviously: 3k/month x 18 months (odds are you'll change/adjust your plan after that long anyway) +1k/monthx18 months (oops I didn't plan for that) + $50k holy hell I can't believe that just happened type emergency/safety net. So that is $122k, not touching your other investments and replenishing the kitty for 3 months each year when going back to work.

you're welcome, now just take off already before you talk yourself out of it

[MarkJ]

Originally Posted by Pelagic

I think the worst legitimate expense would be a medical air evacuation for someone on life support over a few thousand air miles.
Hopefully your insurance will reimburse, but funds on hand when every second counts, is a decision we have to make

Before I started this escapade in 2008 I wrote on this forum: "I will always have a $5000 contingency fund". Some old sage bastard who had just finished his multi year cruising wrote back "I bet you never have that!"
May I tell you he was right.

So, lets get on to emergency flight home on life support. Why spend $30,000 for that flight when there's a competent surgeon, foreign if course, in a well established hospital right where you became sick?
It's only because we have some perverse idea that all foreign hospitals are death traps and all foreign doctors incompetent.
Americans in Australia stubbibg their toe fly to the US to have an overpaid doctor prod it instead of the world class medical facilities of Australia.

Same in the Caribbean where there's top doctors in French hospitals. Or Panama, or Thailand where the best doctors wait with affordable operating rooms?

No. We want to waste money so we can fly "home" to a scungy government hospital, over worked doctor and bored nurse.

We are a funny lot


Mark

[MarkJ]

Originally Posted by ol1970

The correct answer , regardless of any of the silly details, is obviously:

Hey, Presto! Perfect

[Tango_51]

You only need money in port... hard to spend on anything while sailing...
hmm how did they do it in the past?? pay all your bills.. live on cash.. don't coast much

[Pelagic]

Originally Posted by MarkJ

So, lets get on to emergency flight home on life support. Why spend $30,000 for that flight when there's a competent surgeon, foreign if course, in a well established hospital right where you became sick?

Mark

Wish that were true Mark, but medical training, standards and facilities vary dramatically in places like the Philippines and sometimes an ailment needs specialist treatment.

Obviously you can risk it, but an Emergency fund does give you that choice.

Case in point....an otherwise healthy crew collapsed with laboured breathing and arythmic heart conditions while we were in Yap at a dive resort

Local doctor and hospital was clueless over cause, but copious amounts of Oxygen kept him alive until we got him a low level flight to Guam military hospital the next morning

There after many tests and consultation with Hawaii they diagnosed him with having contracted a serious heart virus, but were unable to treat him in Guam.
(He was on life support by then)

They were talking heart transplant or if lucky a pacer installed if they could stabilize and save his heart. His condition was critical!

Insurance company wanted to send him to closest specialist care in Australia, but as his family was in Miami, we decided to pay to fly him there and to get him into Mount Sinai hospital which is one of the worlds top ranking Heart disease centers

Pleased to say that after 2 years rehabilitation, he was fully recovered and is still kicking 20 years later.

Point being is that the size of your emergency fund can dictate life saving options when in remote places, that you otherwise would not have.....Even if you have a good International Insurance Medical Plan.

I remember that the medevac flight from Guam to Miami via 2 refuelling stops, with both a dialysis team and heart specialty team cost just under $400k.

Luckily I eventually got the insurance company to reimburse us, but he would have died while waiting for approvals.

[Tango_51]

Hmm this is easy... toss them them over board let the sharks eat them... save your money .. move on
next question... it's not like were all going to live forever... last i looked nobody make it out alive.. so start living..

[MarkJ]

Originally Posted by Pelagic

we were in Yap at a dive resort.

Well, considering you and I are the only people on this forum who know where Yap is, and you're the only one whose been there... yes I take your point in far flung provinces.

But zoom forward 20 years to a modern French Hospital in French Polynesia and you get mine.

Fatty Goodlander went there and said everyone had red mouths from Beetle Nuts. Same when you were there?


Mark