Budget Be Damned

[sailorboy1]

So I've been full time living on the boat and cruising a little more than 2.5 years. In that time I've been very weak and have regularly exceeded the monthly budget of $3k/mo I had planned on. So I wondered how this has all worked out in the big picture so I took a 2.5 year review:

- we have spend approximately $120,500 in this time, all in no "not countings", starting Sept 16, 2016
- we started with about $475,000 in real assets like cash, 401ks, and some stocks
- the only "income" we have had in this time is about $4500/yr in a rental house the past 1.5 years
- our total asset reduction for this time period is about $10,274 and as of April 29, 2019 we still have $464,726 in same basic mix of assets
- this is the difference of our current assets of real time 401ks, stocks, cash, rental value at the purchase price

So it has cost us in real "money" about $10,274 to cruise 31.5 months.

These are the facts and are what they are. It is just something to consider if you get into some "you need $XX" financial manager BS story. Not saying I'm right or wrong in my approach, just that this is a hard $$$$ fact FOR ME. And just wait till what happens in 3 years when I start tapping into whatever is in the Social Security Fund (my money I was made to "invest")

I'm providing this info to help planners. I'm NOT interested in the peanut gallery questioning or spinning some story about my numbers, I have an MBA and understand my numbers. I haven't done anything "special" I feel and have taken a moderate to above average level of risk, which included a slam a couple of years ago that I stuck out.

So go forth and cruise before you are old. It's your money so be sure YOU get to spend some of it instead of leaving to your "heirs".

[Sailmonkey]

So are you saying that your stock gains/401k gains offset all but $10k of your expenditures?

That gives me hope that our finances will be OK for our early midlife temporary retirement!!

[Copacabana]

Great post Sailorboy! I've been following your monthly budget posts for a while. I'm glad it's working out for you both.
I'm curious... would you have spent more per year if you had stayed on shore at home?

[GGT]

Great post. I have been following your post and they have given us the info needed to confirm we are not totally crazy. Wr finally pull the trigger. We bought a Leopard 46 last month and close on our apt in SF on Friday (we sold or gave away everything not going on the boat. Full time cruising here we come.

Quick question, where do you invest? It sounds like you are beating my rate of return. I am always looking for better investment options.

[thomm225]

Originally Posted by sailorboy1

So go forth and cruise before you are old. It's your money so be sure YOU get to spend some of it instead of leaving to your "heirs".

I wonder if this is such good advice

To go and motor the ICW with maybe one trip to the Bahamas in almost 3 years.

This seems to me to be a lot of time wasted. What was accomplished?

Are you now ready to go back to work in a new career? Learn a new thing?

This isn't totally pointed at SB1. I'm just trying to wrap my head around the retirement thing especially if you are under say 66-70 years old and are in good health.

We have a software tech at work that is 78 years old and really enjoys what he does. The 1990's mainframes though that he helps keep updated may soon go offline so not sure what his plan will be after that

He may be like the dogs in Call of the Wild that when they cannot pull the sled anymore just run along side for as long as they can which seem quite appropriate

[a64pilot]

An issue is that the Stock Market during that time has been performing at nearly an all time high.
That isn’t sustainable long term I don’t think. I’m glad it’s been doing so well, my net worth has increased slightly over the past few years after Retirement.
However I feel that will come to an end eventually, and then we will all pay the piper.

[sailorboy1]

I think if all things the same and I had stayed in my paid off small house not working the past 2.5 years I would have spent about the same to maybe a little less.

I'm not investing in anything too complex. I mostly stay with balanced and mixed index type funds. There are so many of those that you can pretty much vary and mix different ones with different risk levels to match whatever you are comfortable with. One thing I never do is invest in anything that I can not pretty much understand (I used to work at GE and got to where I didn't understand what/who they were and got out of GE stock, that was the right thing to do :-) )

I don't have any magic ball or knowledge and I try not to micromanage my discussions.

[sailorboy1]

Originally Posted by thomm225

This seems to me to be a lot of time wasted. What was accomplished?

Are you now ready to go back to work in a new career? Learn a new thing?

Say what???? You have been nothing but a negative to every cruising post I've ever done. What is your end goal other than to suggest that cruising is a waste of time? You have posted you aren't even interested in cruising so why is it so important to you post on a cruising related story? (never mind as I don't care)

What have I accomplished??? I've cruiser up/down the Eastern US over 3 times. Been to the Bahamas and now am on the West Coast of Florida on my way to New Orleans and Texas and then who knows. I'm traveled and seen new places, met new people and friends, experienced different cultures even in the USA, and had a good time and enjoyed life. What had you accomplished??

I'm now only 59 and have enough assets to do this till I'm 90 even if my assets stop growing. I'm debt free and not planning to go back to work unless I get bored and feel like saying "welcome to Walmart" most off the day.

[sailorboy1]

Originally Posted by a64pilot

However I feel that will come to an end eventually, and then we will all pay the piper.

The market is always in cycles. If it worries you there is an easy answer, ................. get out and buy money market bonds etc.

When I decided to start cruising I had a certain monthly budget chosen. I have exceeded than on a regular basis. But it hasn't really worried me as I also assumed the market would only increase 3% a year. Everyone needs to decide what level of fear they are going to accept.

BTW - CF has a sister forum for early retirement. You should spent some time there to find out just how miserable they sound in all their worry.

[thomm225]

Originally Posted by sailorboy1

Say what???? You have been nothing but a negative to every cruising post I've ever done. What is your end goal other than to suggest that cruising is a waste of time? You have posted you aren't even interested in cruising so why is it so important to you post on a cruising related story? (never mind as I don't care)

What have I accomplished??? I've cruiser up/down the Eastern US over 3 times. Been to the Bahamas and now am on the West Coast of Florida on my way to New Orleans and Texas and then who knows. I'm traveled and seen new places, met new people and friends, experienced different cultures even in the USA. What had you accomplished??

I'm now 59 and have enough assets to do this till I'm 90 even if my assets stop growing. I'm debt free and not planning to go back to work unless I get bored and feel like saying "welcome to Walmart" most off the day.

Awesome!

I've done most of that while working but much of it on the outside on a beach cat which allows you to cover the distances at speed.

At least from Panama City to about Biloxi including the Horn Island and Ship Island Races off the Mississippi. ICW Atlantic on power boats from here to about Bogue inlet near Swansboro

I always liked when you could see what your accomplishments were though but in this day and age our jobs are different.

Back in the day though working on the farm you could see it.

https://www.youtube.com/watch?v=lRkB...r7aDrkuQTkBngE

[Fiveslide]

Originally Posted by thomm225

Awesome!

I've done most of that while working but much of it on the outside on a beach cat which allows you to cover the distances at speed.

I swear, you post "beach cat" one more time, I will find a way to become a CF site administrator and write code to redirect you to thebeachcats forum every time you log in.

Originally Posted by sailorboy1

What have I accomplished??? I've cruiser up/down the Eastern US over 3 times. Been to the Bahamas and now am on the West Coast of Florida on my way to New Orleans and Texas and then who knows. I'm traveled and seen new places, met new people and friends, experienced different cultures even in the USA, and had a good time and enjoyed life. What had you accomplished??

What's your hurricane season plans? I wouldn't want to be on those coasts when that time comes.

[sailorboy1]

Originally Posted by Fiveslide

What's your hurricane season plans? I wouldn't want to be on those coasts when that time comes.

Same as all the boats in the Gulf.

[barnakiel]

We cruise basically on 5k a year. If we have more, we splash.


The cost does not bother me, I am not here to take it all to the grave. What worries me is more and more administration and red tape on both sides and the exponential growth of boats in Caribbean anchorages.


If this goes like it goes, I will quit the game one day soon.


You have a fine budget, one to envy. Congrats.


b.

[a64pilot]

Originally Posted by sailorboy1

The market is always in cycles. If it worries you there is an easy answer, ................. get out and buy money market bonds etc.

When I decided to start cruising I had a certain monthly budget chosen. I have exceeded than on a regular basis. But it hasn't really worried me as I also assumed the market would only increase 3% a year. Everyone needs to decide what level of fear they are going to accept.

BTW - CF has a sister forum for early retirement. You should spent some time there to find out just how miserable they sound in all their worry.

It’s not my fear. I’m pretty sure I’ll be OK.
What I am saying is what has made it so you have only spent 10K is this phenomenally strong market is all, take that away and your supposition of I’ve done it all on 10K goes away.

[sailorboy1]

Then again you could as easily say I only have money because the market has overall increased the 59 years I’ve been on the planet.