How much is enough??

[Rhosyn Mor]

I retired 9 years ago, but I still "work" . I am not sure if I even qualify for the poll. I work at whatever keeps me out here cruising. When I started I had 15K USD which was my total net worth. Currently run at between $6k and 10K a year on a 38 footer

[rexposeidon]

my plan is to be retired and sailing at 52 yo. I did the math (as I BELIEVE) it be for MY lifestyle, and think that I could do it on $500K if and only if, I have the boat paid for by then. But truly the amount of money you will need depends on how lavish you want your life to be. For me and the misses jeans and t-shirts will be dressed up for an occasional sushi dinner in town, or trip to the local bar.

[Silverado6x6]

I have been looking a lot lately at boats for sale, I was almost ready to get the approved boat loan for $25,000 last week for a 41' Hatteras down in Key West, I am too friggin impatient and I may very well buy something thats not the best for me, my goal is to have something large enough that it does NOT feel like a 21' travel trailer, it would be a winter retreat for me for about 4 months in the winter, it doesn't have to be in top shape, the Hatteras I mentioned was re-engined with a pair of 96hp Perkins, not a bad idea but I was thinking all along it had at least a pair of 53 DD's.
There is a 63' Ferro boat I like and another late model fire damaged upper of a million dollar boat thats in my price rang, the belowdeck forward and engines are in good shape.

Now if I can just stop drooling at what I see on the internet and just be down in Florida or even closer like Seattle and be in the right place at the right time and just get lucky on something that needs a quick legal sale, I see them from time to time on Craigslist, like a 34' Irwin for $3500.

[seafox]

Originally Posted by rexposeidon

my plan is to be retired and sailing at 52 yo. I did the math (as I BELIEVE) it be for MY lifestyle, and think that I could do it on $500K if and only if, I have the boat paid for by then. But truly the amount of money you will need depends on how lavish you want your life to be. For me and the misses jeans and t-shirts will be dressed up for an occasional sushi dinner in town, or trip to the local bar.

problem is you cannot guarantee the rate of return on your investment for any reasonable length of time. You could get 9% on call at the major banks here a couple of weeks ago. Now it is a struggle to get over 8%

I locked into some 4 year fixed term dep at 8.7% last week. Now they are all 8% and less. In a year who knows where it will be?

[rexposeidon]

True, so I calculated 0% return on savings and went with 4.5% (govt bonds) for my 401k, and figured that was how much I could save up in the forseable future. I'd stick the money under my mattress if I could trust myself to keep my paws out of it. I wont ever be wealthy but I'll be living at the level I like.

[Charlie]

Originally Posted by seafox

problem is you cannot guarantee the rate of return on your investment for any reasonable length of time. You could get 9% on call at the major banks here a couple of weeks ago. Now it is a struggle to get over 8%

I locked into some 4 year fixed term dep at 8.7% last week. Now they are all 8% and less. In a year who knows where it will be?

Wow 8.7%. I locked in some money at 3.7% b/c rates were falling so fast. Yes you never can tell.

[muskoka]

Charlie, 3.7% - that's because you're not in New Zealand...

[seafox]

We now have accounts at our major banks called PIE accounts. They are tax paid at 30% (top tax rate here is 39% so a good saving there). If you are on the highest tax rate you do not have to pay any additional tax.

The result is you are getting around 9% on on call PIE's and up to 10% on term deposit ones.

The govt set the PIE laws up for our Kiwisaver Fund and the banks have used the laws to offer these products.
The money is invested similar to term deposit and on call deposits with the bank. It is the govt (not the bank) that allows the rate to be so high.
Glad I live in NZ. 3.7% would be going backwards after tax and inflation.

[exfishnz]

Originally Posted by seafox

Glad I live in NZ. 3.7% would be going backwards after tax and inflation.

Taking into account the currency ex & inflation etc over the term of the investment (as pointed out by Mr Sea-foxy-man in another thread ), I thought I'd throw out some FYI:

NZ has double taxation treaties with a number of countries. For example, I'm in OZ, therefore the NZ banks withhold 10% (of the interest earned) p/a for NZ tax. However, the OZ govt will treat that as a tax credit to me over here.

[seafox]

Our govt wont let me claim the Aussie franking credits on my Aussie shares though.

NZ dollar would be too risky for you guys to invest in now. It is heading down. Doesn't worry me though, as I live here

[exfishnz]

Originally Posted by seafox

Our govt wont let me claim the Aussie franking credits on my Aussie shares though.

I feel your pain brother, that's some of the reasons why I left I'll revisit, but will never re-domicile there.

Incidentally, did you know that in SG (Singapore), if the country of the earned passive income (interest, dividends etc) taxes at least 15% - then the SG govt won't apply any further tax. You know, I read an article that stated by 2020, SG will have 20% of the EU private banking market.

[exfishnz]

G'day Mr Sea-foxy-man,


Just letting ya know (incase you're not already checking out the OZ online papers), some retail bank mortgage rates are now at 9.62%. Also, last week the job figures were up & the “economists” are now betting (like a punt on the horse races ) of a 40% chance of an RBA OCR rise.

[GMac]

Wow, I thought we were being shafted by the banks here. Nice to know the Aussie banks are shafting their own a lot more than they do us over here on the mainland.

[Inthewind]

I don't finance anything anymore. When you owe money in my opinion, your a slave. If you owe a very significant amout of money on anything, than that takes all the fun away. Buy what you can afford even if it's a smaller yacht and upgrade later if that's what you want. Being in debt SUCKS.

[GMac]

Yeap, agree with you there, unless you can make the debt work for you. I borrowed big a while back and played hard with the bucks. The big square up coming very shortly and I'm going to win big. But once gone the debt won't be coming back.