Retirement in My Early 40s ?

[ZuiQuan]

Hello everyone!
I am a 22 years old Finnish guy. I know that most people in my age dont think further than the next month, but I think/hope that I have it all figured out for the rest of my life:

At the moment I am studying law in England and the plan is to end up practicing law in the Cayman Islands. My idea is to get myself a catamaran, something similar to Lagoon 421 or 450. Besides the boat I will need about 600k invested which should get me 40k+ a year to spend. I have made some calculations but I am yet not sure if that is enough to maintain myself and a 40-45f catamaran. I have also calculated that achieving this economic situation should not take much longer than 15 years.

One of my options is to live in the boat, something I have always dreamed about, and that would also save money in living expenses. I was involved in an internet business which left me with ~100k € and this should get me the advantage of getting a loan for the boat right away (not needing to waste time/money for renting an apartment) and start payments as soon as possible.

The second option is to buy/rent myself an apartment and then get myself a catamaran few years later and lease it to 3rd parties. During the first years I will probably have to work very long hours which means that I cannot really enjoy much sailing anyways. Renting the boat should help with the payments but would also expose it to more usage and wear. Does anyone know what is the average utilization rate of a leasing catamaran in the Caribbean area?

I understand that things may and will change, but with the facts above is there anything I should think about during this early stage of preparation? All tips and words of wisdom are very welcomed and if you find any flaws in my logic/planning please let me know!

[Weyalan]

A boat is only ever an investment in your lifestyle - you cannot hope that it will make any return on your investment. If you are at the stage in your life where you are trying to build your wealth for early retirement in the future, you should be putting your money into assets with a significant return... house (appartment if you prefer) is one obvious such choice.

Buy your boat when you have made your money.

[Kefaa]

I wish it were otherwise, but Weyalan is 100% on target. There is no short cut to financial security. Hope is not a strategy. Luck is not a plan.

Invest. Diversified & aggressive.

[Navicula]

600k and get 40k per year........please tell me how

[tager]

I would just set your sights a little lower. You don't need a giant cat to be happy!

This would allow you to invest your capital in this amazing 6.67% investment scheme you seem to have dialed in.

[Bash]

You are 22, and hope to retire 18 years from now.

Fascinating. Especially the part where you want people like me to advise you how to accomplish this.

My advice: give up the charter idea. The only valid reason to become involved in sailing is that you love to sail.

[capcook]

I see just one little fly in the ointment... I didn't read anything about the "other half"...

Good luck staying on track when that diversion enters your life...

cheers

[ZuiQuan]

Originally Posted by Weyalan

A boat is only ever an investment in your lifestyle - you cannot hope that it will make any return on your investment. If you are at the stage in your life where you are trying to build your wealth for early retirement in the future, you should be putting your money into assets with a significant return... house (appartment if you prefer) is one obvious such choice.

Buy your boat when you have made your money.

I am not expecting it to earn money and I dont mind it not gaining value or even losing it as the plan is not to sell it but to sail it till the end. If I buy myself an apartment and pay interests for 6-7 years and then buy the boat and again pay interests for 6-7 years, I m not convinced that the aparment has gained enough value after 15 years to cover all the expenses. That is why I thought that it would be better idea to buy the boat right away and use it as my home, pay interests for 6-7, years and then invest all the money I make after that.

Originally Posted by TACK OFF

600k and get 40k per year........please tell me how

I have plenty of friends studying economic sciences and they all believe this to be a realistic return of investment, even with moderate risk taking. And I am not planning to pay any taxes.

Originally Posted by tager

I would just set your sights a little lower. You don't need a giant cat to be happy!

I know, but as I am planning to use the boat as my home I would prefer a catamaran with spacious living areas. If I end up living on land, I will probably get myself a less expensive boat. If I cant get the money together in 15 years then I just work a few years longer and still retire before I m 50.

Originally Posted by Bash

My advice: give up the charter idea. The only valid reason to become involved in sailing is that you love to sail.

You got me wrong; sailing is my passion and leasing the boat, for lets say 7-8 months a year, is just an option that would help me to pay the bills and still let me sail during my holidays. Of course this also means that I need to get myself an apartment to live in, which takes money.

Originally Posted by capcook

I see just one little fly in the ointment... I didn't read anything about the "other half"...

Actually I believe that being a bachelor suits me very well. But, hey if there is a pretty single girl reading this, who shares my interests in boating, sailing, diving, trekking, mountaineering and travelling, wishes to spend next 15 years in the Cayman Islands and then rest of her life sailing around the world, please send me a PM. (I am not interested in having children, but I will settle for a golden retriever)

[cat man do]

Originally Posted by ZuiQuan

I have plenty of friends studying economic sciences and they all believe this to be a realistic return of investment,even with moderate risk taking.

Studying economics eh?

Theory often differs from reality

And I am not planning to pay any taxes.

Non resident eh?

[Denvermike66]

ZuiQuan I admire you and as a 43 year old bachlor myself with no kids... I say go for it! I am currantly doing the same as you. I too like the Lagoon and am looking hard at them. Not to mention it is a buyers market! Btw I will have to give up my best friend "Akira" my 2 year old German Shepherd, the rules and regulations from country to country are too difficult:-( just an fyi!

[osirissail]

Live on the boat in the CAYMAN ISLANDS? Take a course in weather history - that is not an area of benign summer weather.

[ZuiQuan]

Originally Posted by osirissail

Live on the boat in the CAYMAN ISLANDS? Take a course in weather history - that is not an area of benign summer weather.

Non semper erit aestas - I know! As a native Finnish I am quite used to shity weather. Storms and heavy rain fall wont bother me half as much as slush and winter days with only few hour of daylight. At the moment I am looking forward to it as a new experience / adventure, but I might change my mind after the first hurricane, will see.

[Bash]

Originally Posted by ZuiQuan

Non semper erit aestas - I know! .

Great quote. It should apply equally to financial planning as to choosing a cruise destination.

[ZuiQuan]

Originally Posted by Bash

Great quote. It should apply equally to financial planning as to choosing a cruise destination.

You guys dont seem to think that 600k is enough? I am quite a modest quy to be honest. I used to spend money carelessly in the past, but it all changed once I counted my shirts and found out that I had over 50. I am not buying more untill I have weared them all out. I believe that I should do just fine with 10 shirts, 5 trousers/shorts, 2-3 suits and some sports clothing. One good thing for my cause, considering life in a boat, is the limited space. Pinball machines and capuchinomakers wont fit there, which should save me a lot of money and keep my life simple enough. Enjoying diving, trekking and mountain biking should be quite cheap escpecially in my favorite parts of the world; Latin-America and South East Asia.

It is not like I m going to tell my new boss that I will quit in 15 years when I get my first job. I will work as long as it takes for me to be satisfied with my financial situation.

[S/VSkylark]

ZuiQuan,
As some have mentioned, there are a lot of unknowns in life and an 18 year plan, especially with you only being 22, is a very tentative thing at best. (Especially agree with Capcook and the question about the other half. It's amazing how things change when that is added to the equation) With that said though, you have a dream and there is nothing wrong at all heading towards it. As well, being 22 and having 100k+ in the bank from a previous business shows you are no dope, at least to me, so you certainly have an advantage.

There will always be naysayers, they seems to gravitate to this forum actually, but if it is something you truly want to do, go for it. There are some really good points above to consider. You mention you are a modest guy but look to get in a 45 foot cat. Yikes, have a tough time with that as you certainly could be a bit more modest on something in the 32-35 foot range and be very comfortable, not to mention much less in debt. I agree that chartering is a bad idea. Even though I understand that you are not looking to make money per se, the wear and tear the boat will undergo by the time you are ready to sail away would not be worth it in my opinion. Get something a bit smaller and live on it. Even though you will be working a lot at first, you will still learn the ins and outs as well as gaining experience with weekend and weeks sails now and then. As far as the Caymans, if it works it works, if not move.

Financial security is not easy and takes a lot of hard work and time but, you have to weigh that against what you want your life to be and how you want to live it. I am almost 40 myself and sit day in and day out in front of a computer screen 10 to 12 hours a day. Yes, I have financial security, but life is rather fulfilling to be honest. Its all about balance and if you can start that balance now, you will be n good shape.

Pay your boat off and live debt free. Save some money, and by your early 40s, you can reevaluate and see how things are looking. 18 years is a long term plan to say the least, but if you keep you ducks in a row, it certainly doesn't hurt to try. Good luck.