Sold my company - want to sail - but can I?

[LivingWhale]

My wife and I are in our mid 40's. We sold our company and have a decent nest egg. I've read countless forums on living on a boat for as little as $600 per month, but it seems to me that food alone will cost that much. We're thinking of having a small home inland and then docking the boat between NC and FL. So, docking fees won't be cheap either and a catamaran is a must, which provides more challenges. I can overcome most obstacles, but I think it's wise not to bite off more than I can chew. Our nest egg has to last until we pass, so running out isn't an option. I'm hoping that someone out there is doing something similar and can help me with the costs. I will have the home and boat paid for (thinking 40' cat about 10 years old for about 200K give or take). I have calculated monthly raw costs at about $5500 for home taxes (home will be worth about 300k) insurance, etc etc and boat dockage, insurance, food, etc etc. My concern is 10 years from now things be twice as much, would make it less doable. Thoughts? Advice?

[sailorboy1]

lots of threads ..................... 0 agreement!

I doubt YOU can do it on $600/mo. I'm planning on $3000/mo for a couple and that is no land base and has to on average cover everything.

[LivingWhale]

Originally Posted by sailorboy1

lots of threads ..................... 0 agreement!

I doubt YOU can do it on $600/mo. I'm planning on $3000/mo for a couple and that is no land base and has to on average cover everything.

Thanks! Will you be sailing a similar size cat? Are you factoring in a home base dock fee? Your input is very helpful. If there's anything else you care to share, it would be appreciated!

[sailorboy1]

I'm sailing a 43' mono. No home base in my $3k budget, just transient stuff. But $3k/mo can get you dock time with planning.

Do a search here on "budget" and it will keep you busy for a while. But from my research for someone like you (and me) a good budget to be able to enjoy cruising is $2500-4000/mo. Biggest wild card is insurance!

here is a start

http://www.cruisersforum.com/forums/...nth-42283.html

[cwjohm]

If I read your post correctly

You are 45 and just sold your company
You own a house worth $300K which presumedly you wish to keep
You want a boat worth $250K which presumedly you may sell down the track
You have an additional "nest egg"
You do not want to work again until you "pass"

Your assumptions

It will cost $6500 per week to live i.e. around $80K per annum including all costs for house and boat. This assumption is quite reasonable.

You need to allow 10% diminishing value for depreciation on your boat or otherwise spending the equivalent to keep it up to scratch. If you are including the boat in your nest egg then you need to factor this in.

Basically you should consult a financial planner for a proper plan.

However, as to the future cost of money to fund $80K per annum from 45 until "passing" and if you do not work again you would need at least $2 million for your nest egg and it would have to be well invested.

Hope that helps

[salticrak]

Have you been brutally honest with yourselves as to you change of living? I am sure you are switched on couple, but we can all delude ourselves and get caught up in the moment kind of thinking.
good luck.

[cwjohm]

Just reread my post - I meant $6500 per month not week.

[John A]

The generalized $600 a month quote pertains to living outside of the US in third world countries. And staying away from resorts.

[nimblemotors]

Take some of the windfall and invest it in something other than a big boat.
Something that produces income.

[LivingWhale]

Thanks Sailorboy1 and good luck - hope to see you out there.

[LivingWhale]

thanks CW! That is helpful. Capital is a moving number but close.

[LivingWhale]

Originally Posted by salticrak

Have you been brutally honest with yourselves as to you change of living? I am sure you are switched on couple, but we can all delude ourselves and get caught up in the moment kind of thinking.
good luck.

We have given it thought, but it's hard not to romanticize the endeavor. We are doing our homework and still have a lot to learn. Worst case scenario, we sell the boat and return to home base.

[LivingWhale]

Originally Posted by nimblemotors

Take some of the windfall and invest it in something other than a big boat.
Something that produces income.

yes, the boat is a small portion. The principal is invested and income producing through dividends, etc. I will aggressively protect my capital base.

[maytrix]

Why is a Cat a must? My wife and I are on a similar track and have a Mono in charter now that will be our cruising boat. If things change, we might upgrade to a Cat, but we'll simply be looking at how long we can sustain the life on our Mono vs how long on a cat if we were to upgrade. I'll trade a cat for a mono if it means more time on the water in a second.

[LivingWhale]

Originally Posted by maytrix

Why is a Cat a must? My wife and I are on a similar track and have a Mono in charter now that will be our cruising boat. If things change, we might upgrade to a Cat, but we'll simply be looking at how long we can sustain the life on our Mono vs how long on a cat if we were to upgrade. I'll trade a cat for a mono if it means more time on the water in a second.

I would prefer the cost of a mono, but my wife wants a cat - we will be getting a cat