How much can I responsibly afford to spend?

[Cadence]

Originally Posted by D-Vector

Hello all, new registrant here. Like many on this forum, I have dreamed of living aboard a multihull for quite a few years now, and I have worked towards the day that I leave the rat race and become a cruiser. To this end, I have prepared financially by saving money and by developing a passive income that can support a cruising lifestyle.

Once I take the jump, my plan is to cut my teeth in the Caribbean for at least a year before setting sail for other destinations. I'm writing today because I would like your opinion on whether or not I am financially prepared to take the leap, and for your thoughts on how much money I can responsibly spend on a boat, given the up front and ongoing operating costs.

In sum, here's where I stand financially. Excluding retirement funds, I have $1.2M in the bank, a passive income of conservatively $120K / year, and I expect annual increases of at least 5%. I am 47 years old and plan to live the cruising lifestyle for at least a few years.

At this point I don't know anything about the vessel I will purchase, other than it will be a multihull. I figure that I need to know how much I can afford to spend before I seriously consider any options.

Thanks for considering my question, and I look forward to your feedback.

Kind Regards.

Anyone that well endowed shouldn't be asking us dumb asses.