Is this possible or are we being unrealistic and naive ?

[sailorboy1]

I will agree about getting a less expensive boat. I feel you will have a much more enjoyable time cruising on a less expensive boat, but with more spending money, than the other way around!

On my spreadsheet my plan to always have more a years money remaining before other income kicks in.

[SVNeko]

I think its a great plan other than the expectation to do it at that budget for 17 years. Buy a cheaper boat, be frugal but don't obsess over finances and expect to go back to work at some point.

[DaleM]

It's interesting this topic came up now. My wife and I are leaving sometime in 2013. We have a Pearson 34 with a value of about $34,000 (US) and a less money than you have but own the house free and clear to rent. We do not have a good future pension or free health insurance as we age.

I got the bigger boat bug and started looking at fixer upper 42 foot monohulls. I was begining to feel that my boat was too light and small for long term cruising. So I asked my wife, "Would you like a bigger boat with more room or $300 per month to spend on entertainment while cruising?" (I estimate we'll cruise for 6 years or so and the bigger boat will be at least $20,000 more after we sell the 34. That $20,000 is $278 per month over 6 years.)

She said she would rather have the money than the bigger boat. She would rather be doing stuff than sitting on a bigger boat broke. I want the bigger boat but $20,000 as an entertainment budget could make life pretty sweet!

I think I'm going to stick with what I have. I can have nice things on my smaller boat and an entertainment budget.

Dale

[MarkJ]

Remember cats have two engines... That's lots of expensive oil and filters, 10% of your monthly budget when you need to do a change.

[cat man do]

Originally Posted by MarkJ

Remember cats have two engines... That's lots of expensive oil and filters, 10% of your monthly budget when you need to do a change.

And how often does he need to do a change Mark, once, maybe twice a year?
That brings it back to a few dollars a week or 1% of the weekly budget

[SaucySailoress]

We're going in four months, in'shallah. The last ten years have been spent saving and buying nothing. After 16 years in Kuwait, the last ten in massive houses (they don't do gardens here, so if you have 3 big dogs you need to get a big indoor playpen just for them!!) we have surprisingly little **** to get rid of. Not much worth selling, but plenty that will help out at charities. That's fine.

Enough in the bank to eek out an existence, and a little trickling in from investments and a bit of online work; but with the prospect of a market collapse making all our savings worthless anyway, we've given up worrying about money. At the end of the day, we have plenty of friends scattered around Asia who live on less, and if they can do it, so can we.

My biggest worry? How I'll feel when the time comes to say Goodbye to the seventeen year old cat and 11 year old St BernardX...

[Richard5]

Originally Posted by MarkJ

Remember cats have two engines... That's lots of expensive oil and filters, 10% of your monthly budget when you need to do a change.

The corollary is it's more expensive when one doesn't keep to a scheduled maintenance plan. (I know how owners try to 'cheat' the hours.)

[Richard5]

Originally Posted by Don Lucas

On my spreadsheet my plan to always have more a years money remaining before other income kicks in.

The OP will until yr 16 of his plan. Without meaning to be smarmy about it, could it be that such a plan can only be extended a finite amount of time into the future? That is to query that long range planning requires more than a simple income stream.

[Boracay]

We're going in 6 months.

With your level of nest egg a $190k boat will leave very little to last 19 years, not forgetting that you'll need upgrade/maintenance/fixit money (allow at least 25% on a newer boat, 60% on an older one) and some sort of money for emergencies after you retire.

As others have said, it's possible, but then so is swimming the channel and climbing Mt. Everest. If you want to keep on enjoying life you'll need an income that is about the same as you have now. I tried redoing you spreadsheet with an income of $38,000 but the software would not allow it. If you would do this it would give you a more realistic projection.

As others have suggested a 190k cat is probably unrealistic. An ex charter Beneteau 393 or 40 would be more practical.

I spent 5 years upgrading Boracay. It started out as a hobby and I never expected approval from senior crew but she agreed. We did a shakedown cruise from Sydney to Mooloolaba over 4 months last year and we're still going!

At 50 you're still pretty close to your maximum earning potential. I'd be guessing that with a little care you could greatly increase your assets with a few more years work. Selling everything is good but having a home to come back to is better.

From half a world away have you considered taking long service leave for 3 months or more and chartering a yacht to see how you like it?

If yous were to move to a major charter area like the BVI's you could do a series of four to ten charters in different boats while staying in shore accommodation for the rest of the time. Then you could go back to work refreshed and consider your long term plans.

[europaflyer]

Agree with everyone who said to downsize the boat. Cats are rare as hens teeth in the UK, and the marina charges will make a mockery of your budget.

Personally, I would buy a nice 30'-40' range monohull such as a Rival 38, which is a great size for a liveaboard couple. This would only eat up £50,000 of your budget. Even 38' is a little large for some! The inside of boats might seem small to start with, but I've always found that after living aboard for a few days they really 'grow' on you, in the true sense of the word. You would be surprised just how little space people actually need, after getting rid of all the meaningless junk which we take comfort from surrounding ourselves with on land, because we imbue it with an emotional significance (whereas the only things which are truly emotionally significant to us are people).

Go small, go now!

Smaller equals:

Cheaper to buy;
Cheaper to maintain;
Cheaper to moor;
Easier to sail;
Easier to repair;
Stronger (because of a confusing thing called dimensional analysis).

Larger equals:

Faster (somewhat);
Roomier.

With the economics now, of your £320,000 budget, £50,000 would be spent on the boat (for a Rival 38). This leaves £270,000, which is £15,900 spread over 17 years. Not much, but minus the expenditures of a land-based life (no more utility bills, council tax, car related costs etc. etc.), it might just be workable. It could be an idea to wrack your brains to think of an income stream to top it up with though.

I can't emphasize the 'go small, go now' mantra enough. Even in the 38' yacht, a broken engine means nearly £7k if you replace with new. The famous cruising couple Lin and Larry Pardy did two circumnavigations in boats under 30'. That might be a little extreme, but it is the way to go.

[MarkJ]

Originally Posted by Boracay

As others have suggested a 190k cat is probably unrealistic. An ex charter Beneteau 393 or 40 would be more practical.
.

Thanky Spanky.

There's an adage that says boats take 10% of their value to maintain per year (I think it's lower, but...) take a $100,000 boat and add 10% per year, depreciated, as costs and that's a lot of money over 17 years, but only half what a $190,000 boat is.

By the way, for $100k you can do better than a 393 or 49. You could get a 423 which is a bigger boat, quite nice. I fact at that price there's lots of nice boats about.

I think your plan, in general, is fine, yes you can do it for 17 years, but not on such an expensive boat with your investments. But yes, it can be done!

If its a decision about being able to do it on a smaller boat, or staying at work for 17 years, what's the smart choice?

[cat man do]

Originally Posted by Boracay

From half a world away have you considered taking long service leave for 3 months or more and chartering a yacht to see how you like it?

Have you worked those numbers out?
Something like a Hanse 37 in the Whitsundays OFF PEAK is $485/night x 90days = $43,650

A Catalina is $51,300
Peak season is $63,900

http://www.charteryachtsaustralia.co...rter_rates.php

[ebaugh]

There is no complete answer to this question. But on a 44 foot trawler, we spend well in excess of that number in the Caribbean. Even after deducting the $6000 annually for fuel you won't need.

I think unless you are a stellar investor, or know one to advise you, the easiest way to make it work is some at least part time work to supplement the cruising kitty.

Good luck!

[rgscpat]

Weekly or long-term rates and "owner's time", especially in less popular times and places, might be quite a bit less expensive.

[cat man do]

Originally Posted by Bill4

This will leave us with $290,000 to live on. My calculations allow for a total budget of $19,000 per year, rising 2.5% per year for inflation.

I'll put it out there and feel free to shoot it down but US property maybe?
Buy 4 x $50k houses renting for $890/mth (estimate)

Thats $42,720 before expenses
and you still have $90k in the slush fund

Example (I know nothing of the market or area and spent all of 5 minutes looking)
Buy $50k
60 Desota Drive, Covington GA - Trulia
Rent estimate $893/mth
60 Desota Dr, Covington, GA 30016 - Zillow