are you feeling the pinch

[ssullivan]

Originally Posted by philip van praag

i am intrested in how it has changed your plans.
1:are you leaving later
2:have you changed your investment
3:are you now planing to work
4:are you considering a difrent crusing ground
5:will you rent your house insted of sell
6:will you only cruse part time now.
7:have you put back your retirement
8:are you buying a cheeper boat.

1: Leaving approx 1 yr later than planned
2: Wish I had a good investment
3: No
4: No, except probably skipping your neck of the woods for Eastern Europe
5: No house, wasn't a buyer before this bubble started, so never could afford one.
6: No, full time
7: I don't know that I'll ever "retire"... live a balanced life now and will always probably do so.
8: Yes... our previous boat would have set back all these other plans.

BUT... none of this has to do with the economy, other than not visiting Western Europe while the EU is so strong.... but who knows... in 5 yrs, the world can change dramataically, especially the currency markets.

[Charlie]

here in California things are settling down from the frenzy that this place has been since before 2000. Housing is sliding quickly. People who borrowed money for the down payment are all of a sudden upside down and some choose to walk and let this become the banks problem. Those that did not live as high on the hog and stuck with more old fashioned values of spenidng less and saving more (like most people on this site) are in better shape but return on investment is not good. Try to get 7% in a relatively safe return. Good luck. I stuck $50k in the stock market at the begining of the year and its down 6% to 8%.

How does it affect my leaving? I'm still going though it is a year away. I don't think I can spend as much. I'm not leaving on the big forever trip but I am worried about How to take care of my money. On that note I will be more conservative with what I spend. I wish I was in the market for a boat now though. I'd bargain alot harder. Some of them are going to be selling really cheap in the not too distant future.

[Celestialsailor]

I saw this coming 5+ years ago. I don't want to get political, so I won't say why I knew. I live in Hawaii and in a tourist town. I sold out at the height of the boom, built a house on the other side of the Island...cash and paid everything off. I was told I was being paraniod and foolish. Im bringing my boat from Ca. here this year and when I take off from here I can rent the house out.

[delmarrey]

I felt the bite more back in the late 70's thru the early 80's then any other time of my life (1950 to date). I had trouble maintaining a job where advancement was available. And the cost of housing was shooting up so much faster then wages in those times.

It seems we had another spike this past 2-3 years in housing as well with little wage increase.

Just like in another thread here a short while back I compared my wages of 1966 to todays and it seems I'm not making much more now then when I was in High School compared to the price of goods.

Now the Chinese, other parts of Asia and Middle East are doing great compared to those times. Their gain is our fall. Technology and communications has given the 3rd world better advances.

Economy of the United States - Wikipedia, the free encyclopedia

[Charlie]

Originally Posted by Celestialsailor

I saw this coming 5+ years ago. I don't want to get political, so I won't say why I knew. I live in Hawaii and in a tourist town. I sold out at the height of the boom, built a house on the other side of the Island...cash and paid everything off. I was told I was being paraniod and foolish. Im bringing my boat from Ca. here this year and when I take off from here I can rent the house out.

It was pretty obvious it was on its way but there was alot of $$ to be made while waiting. I missed out on some of that $$ b/c I thought the recession was just around the corner. Officially it still isn't here. Though everyone can feel it. I've done better making money in recessions than in good times. I am self-employed though.

[44'cruisingcat]

Here in Aus things mostly seem to be cruising along pretty well. The Chinese are buying all the ore and coal we can dig up, which is keeping us going. Unemployment is at record lows. Actually there is a shortage of skilled labour, so wages are being pressured upwards. Real estate continues to rise in most places, but the rising wages and inflation are pushing interest rates up - which is pushing our dollar up - which will hurt our export returns.

[Joli]

Originally Posted by delmarrey

Technology and communications has given the 3rd world better advances.

Economy of the United States - Wikipedia, the free encyclopedia

For sure they never had to serve as an apprentice. It shows when something falls out of normal.

[bob and sharon]

Writing from the US Northwest, I can say without a doubt that the slowing economy is having a real impact! Unemployment is up, housing sales & construction are sagging. This recession seems to be happening a bit quicker than the last few. I don't think we've ever had so many financial "events" happening all at once: sub-prime meltdown and the subsequent forclosures affecting the mortgage industry, increasing energy costs, increasing US deficit, increasing goverment spending, extremely low savings rate for most Americans vs. debt. It's a mess here, and we haven't even mentioned the effects on the stock market (ugly). To answer the above questions -

We are considering working an additional year (while we can) before cruising full-time.
Our cruising kitty is in Money Market, LT treasuries, CDs as of August.
Our cruising destinations have not changed.
Fortunately we sold our house and are living in our RV.
We will probably cruise through this recession at least, maybe on and on...
We have some retirement funds, but we'll have to work until old (or cruise)
We are looking at downsizing from a 41' to a 33' in part due to the lesser cost in maintaining and cruising a smaller boat.

Overall the cruising dream is alive and well. I agree with Joli, our kids will experience a different economy though.

[Phantom Corsair]

Northeast. It's 19 degrees out and I swear I can hear the Saudis giggling as Bessie fires up every hour or so Note I keep a New England/Korean house so the baby is wearing two layers and a set of Grundens and I can see my breath on the third floor.
For comparison's sake, I'm self-employed, and feed off of human misery for a living (I'm an attorney, not your mechanic) and I think I made $19 and a puppy in December. I'm hoping marital strife and gunfire will be on the rise in '08. In holdings, I'm diverse, but the part that's in equity is stinging. I bought the boat, and since the shrink-ray does not seem to work on the boys, I suppose I'm committed to go. I'm putting cash into passive & semi-passive (real estate) vehicles, with the kitty in CDs or A/B bonds and will try to convince my bride to sell the manse before we go so when the ChiCom really gives the dollar a wet willy, I can salvage some value there. Rental is probably not the way to go for my home, but (with partners) I anticipate some rental income on investment will keep me in diesel and Guinness.

[MarkJ]

Whatever the reasons for high oil prices (OK, i'll tell you its nothing to do with your politics it has to do with supply and demand and India and China are now demanders) please don't let economists put you off your dreams. Most recessions are just in the figures and its the media that makes everyone feel they should be wearing threadbare clothes.
If it does hurt your, and our, economy instead of being pessimistic about it figure a way to 'profit' by it. First thing is don't sell boats, but do try to buy one! Recession = cheap luxury goods

If theres no job for you, then there is no place cheaper than living on the pick for free.

If the share markets downturn is hurting your investments then get ready to buy as much as you can when it turns! Its not what you buy at the top of the market as it will always return, its what you buy at the bottom of the market that will have you sitting on BVI quicker, or with more dividends in later years.

The other thing to remember is that the figures you read about in the paper: Last Quarter Huge Losses!! means that in the quarter ending Dec 31, ie from October 1st.... so the figures are already 4 months out of date by the time you read about it!

We will be coming out of recession well before bunnies like you and I know it.
As I have always said: When the newspapers say "Don't buy shares" and when Newspapers say Don't buy realestate" buy

The attached chart (below) is our Australian index since 1980. So in the last 28 years what can you see? That its going basically in 1 direction: up. So now is just a buying opportunity.
Even the "Tech wreck" in 2000 doesnt even figure on the long term chart.

Don't let a drunken media put your dream off for 1 minute

[maxingout]

After not working for three years, I am feeling the pinch of working.

I can live on board Exit Only for $500 to $1000 per month when I am sailing in paradise. It's living on shore that is so expensive.

On Exit Only. No heating, no air conditioning.
While cruising, No car and no commute.
Exit Only is paid for, and so no monthly payments.

The biggest budget buster is health insurance. $9,800 per year for a $5,000 deductible with a 20% copay. One seriious illness can sink the unsinkable multihull any day of the week.

Baby Boomers are just figuring out that retirement is the big lie. The golden years are turning out to be unaffordable for large segments of the population.

I suspect that many people are going to downsize their dreams, set sail in smaller yachts, and cruise in remote and affordable destinations all around the world. Now that I think about, that sounds pretty good as long as I can stay healthy. And come to think of it, cruising is one of the most healthy lifestyles out there. Humm, I think it's time to go cruising.

[irwinsailor]

I lost my Daughter this week. I can tell you do not let money stop you from what you want to do. I have money and it does nothing for such a loss.

It is not my intention to bring down the group or change the direction of the thread but to point out that family and sharing time with them, maybe on a boat is all that is important.

[Celestialsailor]

Gunner...You are not bringing down this thread at all. It's good you point out priorities in life. Going through such a loss is a process. It has a beginning, a middle and believe me or not...an end or resolve. I have been through such a loss. Not exactly like yours but feeling the pit of the darkness in my heart of such a loss.
Its a point well taken not to let money stop you from what your dreams are as not to let grief do the same thing. I hope you realize your cruising dream and push on when the time is right. You are always in my prayers my friend.

[MarkJ]

I just want to show you what I read after my post below about this sharemarket glitch.

Rupert Murdochs son and Australias richest man James Packer, sone of Kerry Packer have just today launched a bid to buy back shares to make packers media company a private company its all in the article Lachlan Murdoch linked to Cons Media bid speculation | smh.com.au

The point I want to make is that rich people use these times to become richer. I know its not helping someone who loses their job specifically, but I am saying don't feel pesimistic because of this downturn. If Packer and Murdock are buying shares so should we (in theory).

Mark

[Ex-Calif]

The declining dollar is the big suck for me. Paid in greenies and I spend singers. I have lost about $25k (USD equivalent) per year with the dollars decline.

I have lost about 20% paper worth in the equities market in recent times but am still a dollar cost averaging buyer so I consider this an opportunity.

Fuel prices are no big deal - I do coastal sailing and buy about 20 liters of diesel a quarter for the boat...

As always the keys are simple. Spend less than you make. Stay out of debt. Finance only your house and never finance your toys.