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Old 22-11-2019, 11:48   #61
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Re: How much money to cruise fulltime?

Might be of interest...

https://www.yachtingworld.com/cruising/112027-112027
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Old 22-11-2019, 16:50   #62
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Re: How much money to cruise fulltime?

Good day all,
We are in a similar financial position as the OP however with $400K in IRA and Savings, boat paid for and have gone through the boat, new motor, sails, AP and on and on. We plan to quite our jobs next June, sail around and hang living onboard in our slip in Long Beach, CA then leave Nov 1st with down to Mex, and beyond.

Wife will be 65 (will have Medicare Part A for stateside) and I next year will be 61 when we retire in June. I have been following the excellent posts from SB and the like for quite some time now. I get the whole budget thing, lifestyle on the hook, in marinas, maintenance etc. and have created using these numbers a sustainable cruising budget at about $3200 a month with the following quandry. We will let her reach full retirement age of 66.2 to take her SS and I will take mine at 62.

What I am trying to figure out is the best budgeting path for insurance coverage for major issues. I get it medical is cheaper out of the US but want to be prudent for major issue coverage etc. This Feb I blew a disk and had major surgery at $200K all covered by employer benefits. So I am a bit gun shy I guess.

So what do you recommend if you were us. My $3200 month budget includes 500 a month for Med or $6K a year. An Expat travel policy of sorts and most relative to this thread how are you budgeting for Medical now or as you age.

Thanks for listening
Randy
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Old 22-11-2019, 17:09   #63
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Re: How much money to cruise fulltime?

Quote:
Originally Posted by joelhemington View Post
Don't overlook ongoing maintenance requirements when calculating your budget. Things like bottom painting every two to three years ( probably at least $2,500 if you do all the labor yourself) And new standing rigging every ten years ( figure 2k a year for that) As well as the replacement of current equipment that will crap out from time to time.

I'd look into real estate "crowd funding" programs which tend to pay 8% or higher with monthly allocations made to your bank account which should get you about 4k a month before taxes. While this may seem like plenty, it's really not considering all the ongoing maintenance you should be budgeting for. Don't plan to be spending a lot of time in places like Majorca and Monte Carlo on that budget.[emoji3]
Private Equity real estate funds and REITS can have similar yeilds too. An advantage of real estate related investments is they also have strong appreciation potential (vs bonds for example which have limited growth potential). "Potential" being the key word, but the better long term players have strong track records. I have shares in one private equity fund which has been very consistently yeilding about 6% from operating revenue for several years now, not including appreciation of their holdings. Another advantage is zero hassle, vs owning RE directly.
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Old 22-11-2019, 17:33   #64
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Re: How much money to cruise fulltime?

It's probably best to take a year or two and cruise then decide if you like it.

Or just a few months without totally changing your lifestyle then you can always come back and continue the lifestyle you had before then possibly go again if you want.

No need to go crazy over investments etc just continue like you have been doing

This all or nothing idea is probably not the best this day and age especially when folk talk of living cheaply at anchor. This is probably not a good idea for those used to a fast paced lifestyle unless you have multiple projects that can be completed while at anchor
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Old 22-11-2019, 17:43   #65
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Re: How much money to cruise fulltime?

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Originally Posted by Captain Randy View Post
Good day all,

We are in a similar financial position as the OP however with $400K in IRA and Savings, boat paid for and have gone through the boat, new motor, sails, AP and on and on. We plan to quite our jobs next June, sail around and hang living onboard in our slip in Long Beach, CA then leave Nov 1st with down to Mex, and beyond.



Wife will be 65 (will have Medicare Part A for stateside) and I next year will be 61 when we retire in June. I have been following the excellent posts from SB and the like for quite some time now. I get the whole budget thing, lifestyle on the hook, in marinas, maintenance etc. and have created using these numbers a sustainable cruising budget at about $3200 a month with the following quandry. We will let her reach full retirement age of 66.2 to take her SS and I will take mine at 62.



What I am trying to figure out is the best budgeting path for insurance coverage for major issues. I get it medical is cheaper out of the US but want to be prudent for major issue coverage etc. This Feb I blew a disk and had major surgery at $200K all covered by employer benefits. So I am a bit gun shy I guess.



So what do you recommend if you were us. My $3200 month budget includes 500 a month for Med or $6K a year. An Expat travel policy of sorts and most relative to this thread how are you budgeting for Medical now or as you age.



Thanks for listening

Randy
Wow, medical costs in the USA are just staggering. I just paid for a hysterectomy for a Mayan friend recently with cervical cancer...$1,600 TOTAL in Guatemala.

There are a few threads here on healthcare/insurance, give those a look.

With Medicare coverage my take would be have good medivac insurance (its not expensive) and either pay cash if out of USA or medivac back for serious stuff.
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Old 23-11-2019, 03:11   #66
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Re: How much money to cruise fulltime?

Greetings and welcome aboard the CF, smbdyiam.
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Old 23-11-2019, 04:50   #67
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Re: How much money to cruise fulltime?

Being a "Real" pirate, one with zero debt, taking on zero debt in the future, and you are done for a lifetime. Go enjoy the fruits of your labor. Act like a millionaire and you'll have to quickly become a real pirate for certain. The question I would ask, both of you and myself is can we live as we wish, not dip into the funds below a pre-determined level (not ever for any reason) and budget a life we are happy with from the amount of renewable/sustainables. We have less saved than you, but owe nothing on houses, cars, boats, and yes a couple of Harley's (all of which should be dumped/sold to up the kitty) that we really would not keep if jumping off full time. The reason being we all are taxed and insured to death on these things, to a point we could almost have the entire monthly cruising budget covered if we simply eliminated these land based things we so proudly covet as the rewards of working hard our whole lives. So I would say your savings is or should be at 70% untouchable, and your monthly income (if you have some, not sure as you did not define) will determine your average monthly expense budget. At 63, my monthly income is a bit over 3k for ever, and will still grow when I am 65-67 or when I decide. I think this is enough to cruise forever, if you are a wise man. For me a toddy at the boat from my own little bar is better than a $9.00 toddy at the wharf bar every day, for others, I have sit and watched many folks drink six or seven of those nine dollar jewels and then tip out.....burning a "hunge" in an hour or two, every night, of every week, until their liver and their bank account both explode! So for me it all goes back to the real story......Are you a real Pirate? Because a real Pirate would simply laugh and sail on off. You are done my friend, if you want to be.
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Old 25-11-2019, 03:57   #68
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Re: How much money to cruise fulltime?

Looks like the first thing this couple did was to remove the engine from their cruising boat.

It's at least the 2nd or 3rd cruising boat for both of them I believe.

That should save a few bucks on fuel at the very least.

They also installed a rainwater catchment system and filter plus redid the rigging, hand made the chainplates for the backstay, completed a bottom job, and fiber glassed in a few thru hulls and installed a couple seacocks

The point is how much it takes to cruise is very relative to those that are cruising and how they cruise.

http://www.dinghydreams.com/
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