If you had a million dollars.....

[YachtBroker]

Way easier to do this at 39 than 69 and with a child not yet in high school.
I'd do it.

[barnakiel]

Imho if you inherit / win / make (yukie) or steal one million dollars, you do not need to sell anything.

Simply buy tickets to Papeete / Tortola / Brisbane and charter with the Moorings.

If you talk about selling your (stuff/home/car/children) then you sound like you need cash to go sailing. But why do you need all this cash and then a million dollars while thousands of people do it on less than 10k a year is a big guess. Perhaps some mental block / trauma or simply lack f experience traveling the world (with a backpack and a dream). This tread will discover this, I hope.

Back to your question, given another million dollars, I could be tempted to completely restore our present boat. This boat is worth about 10, maybe 15k, and I could restore it to bristol for less than 100k. In your more specific query (no boat yet) I could be tempted to buy a quality boat of my dreams - and this could easily swallow up to half of the extra million. Then I would invest the remaining half a million into a portfolio of long term low maintenance annuity style assets. I would use these annuities and some of the portfolio assets yearly to fund my extravagant lifestyle (flipflops (USD2 a pair), hawaiian shirts (USD 2 each), Shrubb Creole and Grand Marnier (USD 10 a bottle), and other such essentials).

I would aim at spending it all before I kick the bucket. I would give some to charities (stray cats, lame dogs, free contraceptives for men in the developing nations, etc.)

I think that's that. My million is gone by now, I think.

Have a fine long summer wherever you are (winter, if you are into skiing).

Cheers,
Love,
b.

[MB750]

Ok, throw me a bone here. Without turning this thread into a real estate chat, how do some of you even get started in rental properties?

I've done the math and it seems impossible without actually owning a house outright first so you have somewhere to live without paying rent or a mortgage/taxes. Especially out here in SoCal. My rent is 50% of my take-home income. How is it possible?

[BandB]

If I had enough to retire and live as I dreamed, then I'd live the dream. How much walking away that is or where it leads is different for us all as we all have different dreams. However, work to me was always a means to an end, to retirement. If I had a nine year old child, all the more so to be able to spend time with them, but for me, personally, that wouldn't mean leaving the entire world behind just reshaping things.

It would have to be enough money to know I'd never have to go back to my old life. Otherwise, I'd wait a bit longer. I'd rather retire permanently at 49 than a three year break at 39 but then having to work until 59.

The moment we realized we could retire, could live happily without our jobs, we left them, never to return. Now we did ultimately start a business as a hobby but we don't run it. We left NC and moved to Fort Lauderdale. We left lake boating for coastal.

We always had clear goals to retire as early as possible and still have the lifestyle we required. Along the way we saved money diligently with that target. People would ask why we didn't get a new expensive house. It was simple, retirement funding. I hoped to retire at 60, dreamed of 55, fantasized about 50 and retired at 42.

Now, the real issue is how much is enough. A million dollars sounds like a lot and it is if you're 65 perhaps. However, at 39. It has to carry you 50 years or more. There's college, there's health insurance, there's just day to day expenses. Social Security is going to be far less with all the years of not working. There's also the lifestyle you've been living and how near that you can come. Retiring to a vastly different lifestyle may be great or disastrous.

What is retirement anyway? Freedom. Freedom to do what you want, when you want. It's easy for others to say, "Oh yeah, do it, toss the past away, set off on adventure." Always easy to tell others how to spend their money or live their lives. I'd tend to say if you have doubts, it may just not be time yet. When the time hit us, we knew, no doubts, no hesitation. At 39, we could have retired, but not like we wanted to. I might suggest you continue to look at it together, talk about what you want it to be like, then if you're not there yet, keep working toward it, but with a known goal and then you'll know when you're there. Perhaps it's work very hard two more years or maybe it's semi-retirement, working about half time for 5 to 8 years and enjoying the kid's teen years with them. A lot to consider.

[Meacenas]

I am with Sailorboy, if you have a million and you have to think about it, you probably should not. Stay home and mow the nice new lawn, wash the new driveway, polish the new car, buy some new clothes. We are both 50+ owned our own homes and sold everything that other people would call 'valuable'. We have no bills, dont want any. We live on about 25k a year so a million is a cinch to live on. It helps that I can fix anything with my tools.

[Fence Man]

This is really turning into a great discussion, and I thank you for that. Maybe a few more details would help add fuel to the fire. For starters, my wife and I have both been working full time since our early teens. We did both end up with a college education, but in our younger years, we weren't much on school. We both know how to work, and the notion of waiting tables or pumping gas on the dock in the off season doesn't bother us a bit. Before I had a drivers license, I had a truck and a hired man, so being creative about how we could supplement the kitty is not our of our wheelhouse. I have had thousands of customers, and dozens if not hundreds of employees over the years, but I've never worked a "real" job. Our home is a large part of our net worth. We were in the right place at the right time, and bought a turd of a house with a good chunk of land for a song. The value is triple what we paid 10 years ago. I have a half assed fabrication shop, where I build aluminum boats when we are weathered out of the fence work. We have livestock, and a lifestyle in general that is centered around that kind of thing. I have packed up and hit the trail with not much more than the clothes on my back, and other than stumbling upon my wife and having a beautiful daughter, it was the best thing I ever did. I found our how to be happy alone, so I could be happy in general. Not sure that's the best approach with a family, which is why we'd rather plan this out where it makes decent sense all around. We have made many sacrifices, but we have had quite a bit of fun, too. We do have a very nice boat right now, which we would sell if we go on with this plan. I would estimate it's value to be in the low $100k ish range, and it's very comfortable. Momma ain't gonna love it on a $10k fixer upper. She can handle a bigger/nicer fixer upper, but I don't think we are going back to "an old chitty boat" to use her words. We have always planned to check out and cruise at 50....then it got bumped to 45.....now, my daughter asks why we can't just go right now. This ain't a pipe dream....We've been laying the foundation for years. My Dad (and Mom) just turned 65. I have been close to my parents my whole life, and have learned just about all my Dad has to teach. Believe it or not, I actually get to show him a few things these days. They both enjoy time on the houseboat, and would come to visit us wherever we end up. When they retired, they actually moved into a house that my wife and I own. Cute little place on 18 acres, and we would more than likely keep that piece of property so we have a place to land if the need arises.
So to be clear, we don't have a pile of cash unless we liquidate some assets. We wouldn't need to liquidate everything to go cruising, but we want to be comfortable and have some residual income while maintaining some of the net worth that we've worked hard for. I'm sure that if we decided to pull the trigger today, it'd take a year to get to the point of stepping on board. Thanks again to everyone for the input, and my apologies for the run on paragraph.

[a64pilot]

First it may not be a Mil, you may be surprised when you go to sell just how much you get, and how much is left over after all the parties each get their cut, Uncle Sam being the biggest.
Then what do you do with that Mil? Just for kicks let's say you end up with 750K after you buy and completely fit out that Cat, assuming you do not buy a new one. Now you have $750K left. You don't have nearly enough money to buy new.
That gives you $30,000 a yr BEFORE taxes, you will actually have less of course.
That is not but $2,500 a month, and that is not a lot of money from 1 mil is it?

[Fence Man]

Originally Posted by Meacenas

I am with Sailorboy, if you have a million and you have to think about it, you probably should not. Stay home and mow the nice new lawn, wash the new driveway, polish the new car, buy some new clothes. We are both 50+ owned our own homes and sold everything that other people would call 'valuable'. We have no bills, dont want any. We live on about 25k a year so a million is a cinch to live on. It helps that I can fix anything with my tools.

You dare me? lol Do you still have a house, or strictly live on the boat? I have enough tools to fill two semi trailers, and I'm pretty good at using them. How do you all store your tools on board? I've been thinking about an enclosed trailer and doing a little mobile repair work in the off season with the tools I'd like to keep.

[Fence Man]

Originally Posted by a64pilot

First it may not be a Mil, you may be surprised when you go to sell just how much you get, and how much is left over after all the parties each get their cut, Uncle Sam being the biggest.
Then what do you do with that Mil? Just for kicks let's say you end up with 750K after you buy and completely fit out that Cat, assuming you do not buy a new one. Now you have $750K left. You don't have nearly enough money to buy new.
That gives you $30,000 a yr BEFORE taxes, you will actually have less of course.
That is not but $2,500 a month, and that is not a lot of money from 1 mil is it?

You are absolutely correct. I've tried to keep my figures conservative. We would definitely be buying used, and in the off season.

[a64pilot]

I guess I was trying to point out that a Mil isn't much really, plus you have a Long life ahead of you, many Cruisers may not need to plan on more than 20, maybe 30 years, you have maybe 40.
Then there is the kid, I'm sure he is brilliant, and therefore likely deserves good schooling , home schooling works well for some, not all, but I am really talking College, you don't have enough to do that, and what's your plan for inflation? Yes I know the Government says there is none, but seemingly things cost more than they did ten years ago.

I think you need more money, and or a plan to continue working for some number of years six months on six months off thing if that is possible

[Woodland Hills]

Originally Posted by Fence Man

Thanks for the reply. Adjusting our real estate holdings to residential rental properties has been the idea that comes to the top in every discussion. A bonus point for that plan is that my Dad has been in the rental business for 45 years, and is keen to manage them for us, should we go that route. We would prefer to be debt free, if we make the leap. The pressure of the debt is what has pushed these thoughts to the table. I've had some back troubles (my job is just about a labor intensive as it gets) in the past few years, and it's taking a toll on our bottom line. I've been down a couple months this year, and it seems that it's become a ritual of spring. If I were to really get hurt, we couldn't survive more than a year or two without liquidating. Plenty of life insurance, but there is only one way to cash that check, and I'm not interested in that yet. Reflecting on it this morning, I think this is more about preparing for the future than it is about cruising for a few years.....if that makes any sense?

We were apt complex owners for years and residential RE is a huge pain in the a$$. Far better to go with triple net commercial with a good management company: all you need do is set up a direct deposit for your monthly draw and you can live anywhere and do anything you like. You have to refi commercial RE every decade or thereabout, so that's a chance to take appreciative equity out, tax free, while keeping a low LTV.
Hiring family can often cost more than an employee you can fire if needed.........

[BandB]

I'm a bit with A64Pilot. I might ask what the longest you've spent on the Houseboat you own at one stretch? Perhaps it's a key to figuring this out. Next summer, would it be possible for you and your family to spend the entire summer cruising the rivers on it? Might teach you some things. Things like how the business would do without you, how you like that life, what you want to do differently when you do retire. Somewhat a trial run but also a great summer on it's own merits. Is your houseboat landlocked? if so get it moved so you can head down the river on it.

You refer to what you and your wife did years ago and that waiting tables and pumping gas wouldn't bother you a bit. I don't believe you and I'll tell you why. You're owned your own business and apparently done well at it. You've decided how things would be done. How would it be working for an "idiot" (the thoughts you might have) in a restaurant knowing you could make things work better or same at a marina, thinking, "If he'd only listen to me." See, there's a huge difference in doing it young and now. I worked young and had some good and some lousy summer jobs during school. I started at an entry level in a company and took orders well. Then I was CEO and now we own our business. As CEO I worked for one man all my career, the best boss possible. I know at this point in my life, I could never be happy working for someone else. When I was young, working as a dock hand at a marina sounded great. Not sure why I never did. No way I could do it today. I see a business and immediately think of the things I'd change and not being empowered to do so would be tough. Perhaps I'd surprise myself, but I'm more inclined to believe I'm set in my ways and likely you are as well.

I'd build a good cushion before making a full move, but I'd start easing myself in that direction. I'd cut down to 40 hours a week. I'd take nice vacations. I'd improve my current lifestyle while building more for the future. Then suddenly one day you and your wife will look at each other and say "it's time." Things will move fast then.

[Fence Man]

Originally Posted by BandB

I'm a bit with A64Pilot. I might ask what the longest you've spent on the Houseboat you own at one stretch? Perhaps it's a key to figuring this out. Next summer, would it be possible for you and your family to spend the entire summer cruising the rivers on it? Might teach you some things. Things like how the business would do without you, how you like that life, what you want to do differently when you do retire. Somewhat a trial run but also a great summer on it's own merits. Is your houseboat landlocked? if so get it moved so you can head down the river on it.

You refer to what you and your wife did years ago and that waiting tables and pumping gas wouldn't bother you a bit. I don't believe you and I'll tell you why. You're owned your own business and apparently done well at it. You've decided how things would be done. How would it be working for an "idiot" (the thoughts you might have) in a restaurant knowing you could make things work better or same at a marina, thinking, "If he'd only listen to me." See, there's a huge difference in doing it young and now. I worked young and had some good and some lousy summer jobs during school. I started at an entry level in a company and took orders well. Then I was CEO and now we own our business. As CEO I worked for one man all my career, the best boss possible. I know at this point in my life, I could never be happy working for someone else. When I was young, working as a dock hand at a marina sounded great. Not sure why I never did. No way I could do it today. I see a business and immediately think of the things I'd change and not being empowered to do so would be tough. Perhaps I'd surprise myself, but I'm more inclined to believe I'm set in my ways and likely you are as well.

I'd build a good cushion before making a full move, but I'd start easing myself in that direction. I'd cut down to 40 hours a week. I'd take nice vacations. I'd improve my current lifestyle while building more for the future. Then suddenly one day you and your wife will look at each other and say "it's time." Things will move fast then.

Great points from you and A64. I never get to spend more than a few days on the boat in the summer. Sometimes up to a week in the winter. The rest of my family gets weeks at a time on board. It's landlocked, but on a big enough lake to keep from getting bored. I build farm fence. It is not something that could be managed at arms length, let alone a couple thousand miles away. The nature of the business demands 80-100 hours a week to stay successful, and that's loosing it's appeal. Help is extinct, and this kind of work isn't exactly sunshine and unicorn farts. Everything is heavy, it's always scorching hot or freezing cold, muddy or rock hard clay in a draught, breakdowns, busted parts, slow pays, no pays, and the list goes on and on. I love it and I'm good at it, but I ain't getting any younger. It's kind of a stay in or get out situation. Before you start in about boats not always being fair maidens.....I have plenty of experience with that, too. lol Yes, I would have a hard time taking orders from someone who really doesn't have a clue about operating a successful business. I'm sure that I'd figure out some way to supplement the kitty freelance style, if that's what we needed. I hope that doesn't sound all "poor me", because my life is truly blessed, and I honestly wouldn't change anything about the path that brought us here. I think that all the work we've put in will just make it all the sweeter when we do pull the rip cord. BTW, my wife looked at me Wednesday and said "It's time".


A64....I hope that I do have 40 more good years, but we don't get that guarantee. I got the call last week that a good fence building friend of mine in the UK had been in an accident and was in critical condition. Sadly, he succumb to his injuries this week. 42 years young with a wife and a family. They were saving for an extended trip to New Zealand.

[jmschmidt]

If you leave the US with one million dollars in your pocket you will be arrested at the airport. Or if you sail away without clearing out, at your first port of entry outside the US. After you've cleared yourself of suspicion of stealing or laundering the money the IRS will follow you for the rest of your life or at least for the next ten years, and make you file US tax returns every year stating and paying tax on your world-wide income. In the meantime they may have confiscated your boat and let it fall to pieces while you are waiting to clear yourself. Google "Civil Forfeiture" and find out what this means. And, every country in the world cooperates fully with the US IRS and other US Government agencies. If you manage to slip through the crack they will rat you out to the Feds and turn you in so set up your legal and financial affairs properly before you go. Even so you still have to pay Uncle Sam, oh... and banks in foreign countries will generally not open account for US citizens.

Like Dirty Harry said, "Do you feel lucky today punk, well, do you?"

[Fence Man]

Originally Posted by jmschmidt

If you leave the US with one million dollars in your pocket you will be arrested at the airport. Or if you sail away without clearing out, at your first port of entry outside the US. After you've cleared yourself of suspicion of stealing or laundering the money the IRS will follow you for the rest of your life or at least for the next ten years, and make you file US tax returns every year stating and paying tax on your world-wide income. In the meantime they may have confiscated your boat and let it fall to pieces while you are waiting to clear yourself. Google "Civil Forfeiture" and find out what this means. And, every country in the world cooperates fully with the US IRS and other US Government agencies. If you manage to slip through the crack they will rat you out to the Feds and turn you in so set up your legal and financial affairs properly before you go. Even so you still have to pay Uncle Sam, oh... and banks in foreign countries will generally not open account for US citizens.

Like Dirty Harry said, "Do you feel lucky today punk, well, do you?"

I think that you may have missed the spirit of the discussion. No one is going anywhere with a million in cash. We have always operated above board, and Uncle Sam is aware of our holdings.