Planning cruising and savings

[chuckr]

I am 72 and admiral is 70 - we are starting on year 11 and for the past lot of years we published out costs in this forum - this year was year 9. Until this year we did it on our social security but we had a lot of boat maintenance this year including an engine overhaul and a new head sail so had to tap the 401k -
- Our costs include everything and I mean everything - I had glass of cay(tea) yesterday at 1t/l and it is included (less than .25usd) -

http://www.cruisersforum.com/forums/...ta-197309.html

go through our costs and you will see what we have spent.

[Captain Randy]

Oh my......Cyan, just when I thought it best to hang out another year and bank some more cash your summary AGAIN gives pause to these thoughts. Of course we can make it work to go now albeit with less in the savings and the (9) year cruising budget provided proves this that we have enough. How to get through the brain better to take on minimal risk, leave now and that more may not be better should something happen sooner than later.

Hmmmmmm...................

[hamburking]

Okay, I've been following the thread, and hearing all about SS, investments, and lots of other good financial advice.

But I'd like to dumb it down a bit.

I'm a single guy in good health (for now), likely going to buy a cheap, older boat. No problem. Hope to cruise the caribbean (avoiding hurricanes as best I can) for a few years...maybe 3, maybe 10, I dunno. Maybe I'll get bored of it after one year...who knows? I live cheap, no fancy clothes, not much for eating out. Do my own maintenance. I'm happy with rice and beans on the boat every night. Happiest living on the hook, going to a new place every now and then.

Not including the cost of the boat or refit....how many $$$ should I have in the bank to go? No other income.

I've heard enough about interest rates, inflation rates, etc...assume conservative investments and don't care how much is left at the end.

How many dollars in the bank to point my bow south? (I'm on Lake Ontario).

Please don't say "it depends"....pick a number, or tell me your number.

Thank you!!!!

[SVTatia]

Originally Posted by Captain Randy

Oh my......Cyan, just when I thought it best to hang out another year and bank some more cash your summary AGAIN gives pause to these thoughts. Of course we can make it work to go now albeit with less in the savings and the (9) year cruising budget provided proves this that we have enough. How to get through the brain better to take on minimal risk, leave now and that more may not be better should something happen sooner than later.

Hmmmmmm...................

This is a great discussion, with everyone presenting honest opinions rather than being contrarians....
I'd wait the year and also get lots of spares and new sails to minimize the boat emergency cushion while still drawing a salary.

[Drew13440]

Originally Posted by hamburking

Okay, I've been following the thread, and hearing all about SS, investments, and lots of other good financial advice.

But I'd like to dumb it down a bit.

I'm a single guy in good health (for now), likely going to buy a cheap, older boat. No problem. Hope to cruise the caribbean (avoiding hurricanes as best I can) for a few years...maybe 3, maybe 10, I dunno. Maybe I'll get bored of it after one year...who knows? I live cheap, no fancy clothes, not much for eating out. Do my own maintenance. I'm happy with rice and beans on the boat every night. Happiest living on the hook, going to a new place every now and then.

Not including the cost of the boat or refit....how many $$$ should I have in the bank to go? No other income.

I've heard enough about interest rates, inflation rates, etc...assume conservative investments and don't care how much is left at the end.

How many dollars in the bank to point my bow south? (I'm on Lake Ontario).

Please don't say "it depends"....pick a number, or tell me your number.

Thank you!!!!

I would think 30k CA per year would do it. You have national health care, yes? I'd look at emergency repatriation insurance, it's not expensive and will get you home if something goes terribly wrong.

[Bob Morane]

Originally Posted by hamburking

Okay, I've been following the thread, and hearing all about SS, investments, and lots of other good financial advice.

But I'd like to dumb it down a bit.

I'm a single guy in good health (for now), likely going to buy a cheap, older boat. No problem. Hope to cruise the caribbean (avoiding hurricanes as best I can) for a few years...maybe 3, maybe 10, I dunno. Maybe I'll get bored of it after one year...who knows? I live cheap, no fancy clothes, not much for eating out. Do my own maintenance. I'm happy with rice and beans on the boat every night. Happiest living on the hook, going to a new place every now and then.

Not including the cost of the boat or refit....how many $$$ should I have in the bank to go? No other income.

I've heard enough about interest rates, inflation rates, etc...assume conservative investments and don't care how much is left at the end.

How many dollars in the bank to point my bow south? (I'm on Lake Ontario).

Please don't say "it depends"....pick a number, or tell me your number.

Thank you!!!!

Following answers to this with much interest.

Bob, 28 years old, single, passionate diver, with a fair bit of money saved and who want to live THE life for a while.

[hamburking]

Originally Posted by Drew13440

I would think 30k CA per year would do it. You have national health care, yes? I'd look at emergency repatriation insurance, it's not expensive and will get you home if something goes terribly wrong.

So $30k/year. Lets use 10 years as an ambiguous really really long time from now...so maybe $250,000 in the bank. Thats a lot.

Although $30k/year at first sounds like a lot, the canadian dollar is weak, so thats only $25k/year usd (correct me if I'm wrong, but usd is still king in the bahamas and caribbean). And although thats like $2k usd per month, a good deal of that will be for the big items, like insurance, boat repair, and the occasional flight home to bury another relative.

But 10 years is a long time. So is it safe to say $100,000 minimum, $200,000 preferred?

BTW, I realize boat size determines many costs. Could be a Tartan 37, Pearson 35, or something like a Bristol 34.

So if I sell my house, I can go...I guess.

[sailorboy1]

In the overall big picture the cruising cost difference between a 35’ and a 42’ are minor really. But the comfort etc. is pretty huge.

Btw I’m posted my cruising costs the last 19 months here and Chucks has posted years worth. In the end it’s a chance you have to decide to take.

[cyan]

Originally Posted by Captain Randy

Oh my......Cyan, just when I thought it best to hang out another year and bank some more cash your summary AGAIN gives pause to these thoughts.

Yeah, I feel ya, Randy. Money can be planned precisely but I think we sometimes treat time the same way by mistake. We might plan to sail away at age 60 with $300K to last 10 years. The risk of never going is not really about getting to the $300K, though. The way I see it, the risk is betting that you (and your partner) will be healthy enough (and alive) at some specific point in the future.

Some of the free wisdom from people in this thread referred to unexpected health issues. In my case those issues are with aging parents. That should not have been unexpected- I just never really considered it properly. Taking care of elderly parents can be oddly similar to caring for children. Eventually they cannot be left alone when really old. One difference is that you can take children sailing around the world. Wheelchair sailing is probably not ideal.

I summarized those cautionary tales from other CF members because NONE of them were warnings of running out of money- only time warnings. I suppose those who have run out of money cruising at age 75 might now be greeting customers at Walmart and no longer CF members. I don't find that fate so horrible, as those people will have years of world adventure stories to tell in return for old age that is not so "comfortable".

And what about that comfort money...
Maybe a nursing home is in your future. (Hope not, but can't plan that away) You live in California. Did you know that long term care is NOT covered by Medicare? Many such facilities in your area cost about $100K/year. You (and your wife) are on the hook for ALL of this money, unless you already purchased long term care insurance. This could go on for years. Who knew? Whatever savings you have left will be methodically drained down to about $100K, and then Medi-Cal kicks in and the rest of your years are on the house. That's right, a millionare pays big every month for the same nursing home care that a broke person gets for free. This may seem fair on one side of a social welfare debate, but that's not relevant here. My point is that "comfortable retirement" money might never be used to make your retirement comfortable. Those funds might simply pay for the care that would have been given to you if your pockets were empty. (Obviously, inheritance plans are crushed in such cases too.)

I see it like this. If you actually spent all your hard earned money to cruise the world... you won.
You won at life.

[Captain Randy]

Cyan, you have articulated your thoughts perfectly and for that I appreciate it as I would expect all of the other contributors and lurkers. What an excellent discussion with great input from so many. Really my discussion is what occurs between my own ears. Making more money now than ever, Boat is so close and looking great, life is going smoothly and a wonderful wife that shares the dream and is ready to go really once I can get comfortable. Both of our parents are gone, our kids are grown and all doing great and of course we will need to fly home occasionally to visit our 9 grandkids. So...only ones to take care of is us which is a fine spot to be and of course we never know when that can change.

Your point is well taken as no one in this discussion has really questioned the money rather time as you point out. Aside from some back and forth on the how and when of SS and Medicare there has been some great insight provided which factoring to live off of savings as long as possible and let SS mature as long as possible as the best hedge should we outlive our cruising plans.

Of course we have enough in our IRA and in the bank to go at the end of the year. I manage and forecast very large development and construction budgets in my professional life which is a breeze to facilitate compared to my personnel budgets and forecast.

I look forward to more thoughts and opinions here as this has been a great discussion.
CR

[a64pilot]

Everybody has to live their own life.
However I see numbers like something between $100K and $300K being tossed around and have to wonder if that is it? No more income, ever except SS?
That would make me nervous, I think I would have to try to sweeten the pot a little. I think even a frugal person would go through that pretty quickly, cause you know, stuff happens.
Then your too old to work, cause you haven’t for several years and are not marketable anymore, and only have SS to live on, and I think National average for that is about $1,400 per month?
Maybe if there are two of you and you both get the $1,400?

[cyan]

Originally Posted by a64pilot

Everybody has to live their own life.
However I see numbers like something between $100K and $300K being tossed around and have to wonder if that is it? No more income, ever except SS?
That would make me nervous, I think I would have to try to sweeten the pot a little.

Your point is well taken, and clearly wise. My colorful words come from being very annoyed with the free financial advice from the fund management companies. Please excuse the ranting nature.

A family member who now lives with me in his old age has accumulated all of the suggested financial numbers but he is now too old and feeble to go see the South Pacific that he always dreamed of. My father always gave conservative advice and followed it too. He now realizes it was a big mistake to err on the side of wealth, while running out of time. Everyone has to make their own call. However, those who are members here must certainly place a high value on acquiring a few cruising miles before the rocking chair days. Waiting too long is my new fear. Conservative warnings are now dissonance to my ears. Maybe that's just me.

[denverd0n]

Bottom line is that it is a balancing act. You don't want to wait too long. At the same time, you don't want your money to run out too soon and end up destitute in your final years. So you walk a line. Every person has to draw that line for themselves, where they are comfortable. No one else can draw that line for you.

I guess the main thing is to realize that you ARE drawing a line. I think there are a lot of people who never think about it, and stumble along without ever realizing that there is a line there, even if they don't know it. If you give it some thought, realize the different criteria that you are balancing, and make a rational decision, then you are light-years ahead of most of the population no matter what your decision is.

Good luck.

[Lonestaralaskan]

Originally Posted by Homeward13

For me, I plan to retire at 35 and liveaboard with the wife building up savings for adventures six months out of the year. Homeschooling the kids and giving them the life that I missed...

I might miss out on a few bucks in my retirement years, but the life lessons for my kids and living in the moment is well worth it! Who knows, I might even pass away before I reach 40! I wouldn't miss that money anyways!!!

This is me exactly, except I'm a few years older (43). We are saving like crazy at the moment, and documenting our progress on my website Countdown to Sailing - From landlubbers to liveaboards, follow our progress.. We are having kids late - I'm pregnant with the last one right now, and as soon as he's out of diapers, we are heading out.

Not going to trap all of my funds into 401k ("the system"). I only contribute what the company will match me in free money, and the bulk of our savings goes into the brokerage account.

We figure even if its only 1-3 years, we can always come back and work any time - but this type of adventure and the time we can spend with the kids isn't something to wait for.

On my website I have details about how much we need to save, how much we are targeting to spend on the boat, and what our target cruising budget is. I'm a number cruncher, so I'm constantly comparing our actual results to our projections and making adjustments. It keeps me going for now.

[Bob Morane]

Originally Posted by Lonestaralaskan

This is me exactly, except I'm a few years older (43). We are saving like crazy at the moment, and documenting our progress on my website Countdown to Sailing - From landlubbers to liveaboards, follow our progress.. We are having kids late - I'm pregnant with the last one right now, and as soon as he's out of diapers, we are heading out.

Not going to trap all of my funds into 401k ("the system"). I only contribute what the company will match me in free money, and the bulk of our savings goes into the brokerage account.

We figure even if its only 1-3 years, we can always come back and work any time - but this type of adventure and the time we can spend with the kids isn't something to wait for.

On my website I have details about how much we need to save, how much we are targeting to spend on the boat, and what our target cruising budget is. I'm a number cruncher, so I'm constantly comparing our actual results to our projections and making adjustments. It keeps me going for now.

Projecting 15% return a year seems a bit optimistic to me.
Or maybe you know something I don't.