Live aboard - advice on how to pay for it

To continue:

Yes, planning ahead is paramount. For myself, (and I don't fly airplanes like Colby but I was not a professional investor either) I started out a long time ago with a Retirement Financial Planner. I have changed Planners a few times along the way, which I would highly recommend not doing if you can avoid it. Start early with putting funds into whatever matching account your employer provides. If none, then do auto deposit to an account that is managed by a certified planner. Use common sense when rating acceptable risk, and ALWAYS be putting something into the account.

There is a break even point with Social Security withdrawal dates. Work out that with either SS or a planning professional unless you like to work with their (SS) website charts. (Sorry, I haven't done that for a while so don't remember exactly). It may be worth more to you to have the lower amount for longer.

I use VA medical care for many things, but I don't have a large facility, so for some things I have to go through the referral process, which can be very exasperating due to the time delay from request to action. (IE: today I saw an Occupational Therapist for and elbow injury that happened in October. First an appointment with my Primary Care Provider took 3 weeks to get in, then a referral to an Orthopedist a hundred miles away in another 3 weeks, then that was moved back 2 weeks at VA request. Then a referral to the OT but the office they sent the referral to did not have a current OT at their office. Sow after a week I called and got the ball rolling again. Finally an appointment in 2 weeks in Silverdale, an hour an a half away IF the bridge doesn't close to car traffic for an hour.) But most if the time the VA works well as my health is pretty good and I keep on top of what I need and when. I am considering changing to an AARP or BC/BS or something else where I can get minimal copay and choose my own Doc and when I want to go.

I fully agree, to do what you can when you can. Travel may be easier at 60 or 70 than 10 years later, or maybe even 2 years later. Don't put off those once in a lifetime trips you have wanted for years.

Live life,

Harvey
SleepyC :moon
 
401k's. Don't take money out of it! Most of my partners in medical practice took money out of our 401k and used it for other investment opportunities....many of which failed. But they were good tax write offs! (sure)

When you leave on employer see if your 401K is best to be left there, or if you can do better either in your new employer's 401K or a qualified IRA by rolling it over (don't take the money out!). I found that after I left the partnership, that our manager had put the funds in some very "safe" investments, which were earning little return. I rolled those into a aggressive growth entities with an IRA at USAA. Thus my 401 grew much faster than my partners.

The 403 b (Also called "Tax Sheltered Annuity"), is available for school employees, and those of non profits (many hospitals)--similar to 401--and some are not aware of its availability.

Know what your 401 (or any other investment) is really doing! Many people just assume that someone is investing it in your best interest. That may or may not be true. Take an active interest in how your money is managed. There is a lot of free information on the internet to track investments and determine best courses. Be very cautious of advisors who take large commissions on trades or "Churn" with multiple trades. I suspect that there are many who do their own investments on this forum, and are well advised and aware of the markets.

I notice a typo in one of my earlier posts: It should have read IRA's Alone don't give adequate investment income...
 
Cindie and I won't be ready to retire and live aboard for a few more years. But I love reading about the experiences and advice of others doing it before us. Please keep sharing and any folks out there who retire early and or live aboard, what tools worked for you and how do you keep the ship sailing as you pass the landmarks of 50-55-59 1/2-62-65-70.

We are both public employees with pensions so we have it better than most, but we do plan to get out at age 48me and 53her. We have been stashing earnings away for many years (457, 403b, roth), but we can always do a bit more, or do it a bit differently.

Any experience based guidance is most welcome,

Greg
 
Both the wife and I have modest IRA's, and I have a healthy 401k. I'd REALLY like to retire at 62 (4 years away), so I've looked at the difference in SS draws at 62 VS 65. If I wait till 65 to draw...it'll take me 15 years to make up for what I could have collected since age 62.
I'm fortunate in that I (we) have a plan in place for my business partner (9 years younger) to buy me out over a 12 year period starting at my age 62, so I won't "need" SS to live reasonably well. Still, I can't seem to justify waiting till age 65 to start drawing SS.
 
The 8% "benefit" of waiting is not always realized, since benefits end with the recipient's life, unlike IRA's, real estate, and the like.
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Note there is also a "flip side" to the argument "since benefits end with the recipient's life". That is, one of beauties of SS is that the benefits never end until the end of life! IRAs and such can only add to one's "income" during retirement until those accounts are depleted. SS goes on and on until you're 101 or beyond if that were to happen.

BTW, it's not an accident that the break-even point for these trade offs occur at your early 80s. That is the average life expectancy. That's the basic assumption underlying how these numbers are determined by the SSA.
 
One of my "investments" was a 401K. This is one item that I have even stressed upon my kids, put whatever you can into it. Better even if your employer has a matching program. (And understand it and how/what it is investing in for the best returns in regards to your risk tolerance.)

Here's the thing about all these comments regarding working hard, living frugal, saving and investing. We are primarily speaking to the young in age that still have some investing time ahead of them. I can't stress this enough to any youngsters here reading this. The ones you hear speaking of retiring early, are usually the same ones that lived to less than their means while socking money away in savings or investments. But it's not always just about how early you can retire. I chose to remain in the right seat of the plane, making 33% less than I could have. But I also valued my seniority which allowed me to enjoy my family at an early age, traveling (vacationing) frequently early in life with a small camper and eventually a motorhome. I wouldn't trade that time for anything in the world. (I say that because of losing my first wife to cancer. Had I waited till later in life, none of that would have happened for me or my kids.) So while we talk of working hard and extra, enjoy life along the way as well. I realize that's not necessarily easy in today's economy. But I do honestly believe it's doable. It's all a matter of priorities and expenditures!
 
Mike,

Everything you said is well thought out. I particularly liked this section -

“Due to the big hit incurred in reserving a % of a pension to a spouse, it can make more sense to have the vested spouse take 100%, then buy a series of level-term life insurance policies instead: say 1-10 year and 1-20 year, overlapping for 10). Get hard quotes and do the math. Don't ever buy life insurance as an investment in itself, ...”

I’m quite happy with my pension % spouse, but now that it’s too late, just for curiosity sake, I’m going to play this out.

Where were you when I needed you?? Lol

Ferg
 
Early in our working career we retained a "financial planner" who turned out to be little more than a salesperson for some very expensive investment vehicles offered by a big insurance company. Then we went for a full commission broker who advised us to buy and sell frequently. The problem with both was their self-interest was not directly aligned with ours. But we worked like a Dickens, kept saving and investing regularly, and always had a frugal lifestyle. I read a book called "The Coffeehouse Investor" (written incidentally by a retired stockbroker from Seattle) which really opened my eyes to a simpler and more effective investing path. Along the way we did plenty of fun things as a family: boating/fishing, building houses and a cabin, vacations, coaching the kids' team sports, skiing, etc. We bought used cars (and boats initially), bought household items from Goodwill or Craigslist, we packed our own lunch to the ski slopes, and used air miles to take the kids to Hawaii and Europe many times. We avoided debt like the plague. Obviously we never felt deprived, though the kids would bitch sometimes about not having cable TV or having to ski in used ski boots, or Mom's insistence on using coupons, etc. They managed to survive.

And now it seems like we can start to think about slowing down.

Our kids are hard workers and savers, so I know they'll be OK in this regard. I remind them that 30 years goes by quickly, whether you save or do not, and it's really nice to have freedom at the end of the 30 years. I'm very concerned about their peers however: kids today seem much more bifurcated into the frugal and spendthrift camps, with not much in between. Adults as well.

I was talking with a friend about these issues recently and he remarked how "lucky" I was; that these were "first-world concerns". True enough. But while he was watching the Super Bowl my wife and I were freezing our asses off trying to complete some last-minute framing to get ready for insulators the next day. We often worked (and still do) while others played. Fortunate, hell yes. Lucky, not so much.

Another aid to financial stability and a rewarding retirement is having a like-minded spouse or life partner who shares your values and with whom you can plan and dream together. In this regard I am truly blessed. For example my wife worked two jobs to pay the bills when I went back to school in our late 40's to become a health-care professional. We were quite comfortable at the time so this was a hardship for her, but she fully encouraged me and never once complained! I've seen many friends fail miserably due to divergent values regarding child rearing, spending, saving, and overall life priorities. Sacrifice seems much easier with a like-minded partner and when done for the common good.

I suspect there's some kindred spirit on this website, as different as we are, due to the draw of the C-Dory: simple, sturdy, utilitarian, economical, and durable.

Best to all, Mike
 
Ferg: Since you've already selected you should bask in the knowledge that your sweetie will receive a monthly payment for life even if something should happen to you. What a gift to be able to give!

Mike
 
I really enjoy reading this thread.

At 60 I am planning retirement but still working for a bit. I am saving as much as I can but trying to balance that with trying to knock down some of those big expenses for the boat before I retire. Just bought a new chartplotter HDS9 Gen 3 for 2k at Vancouver boat show. I still want (need?) to buy a radar unit and a canvas cover for the back.
I sometimes find it confusing between needs and wants when it comes to the boat. I want these things for my C Dory but what do I really need?
My new chartplotter?
Radar?
etc etc

What is need and what is want when it comes to the boat?
What do you use as a grid to define these words?

C-Val
 
If you venture out in the boat in fog, will get caught in fog, or boat at night, then I would consider the radar almost an essential. The slant back cover will help to preserve the boat, and maintain its value. If stored out of doors, I consider that as a need. I would also say some AIS receiver would be prudent since you boat in an area with heavy commercial traffic.
 
thataway":3heewulx said:
If you venture out in the boat in fog, will get caught in fog, or boat at night, then I would consider the radar almost an essential. The slant back cover will help to preserve the boat, and maintain its value. If stored out of doors, I consider that as a need. I would also say some AIS receiver would be prudent since you boat in an area with heavy commercial traffic.
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I totally agree. For the AIS look at a fixed mount VHF marine radio that has an AIS receiver function included. (Standard Horizon or ICOM.) I would go ICOM M-506 because it has the 2 minute last call recorder.

Storing a boat inside will be best to help maintain the value, if not, It really needs a cover.

Harvey
SleepyC :moon

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I really appreciate all your thoughts and insight into what is considered a "need" for preparing my boat for retirement.

Its an older 1988 angler but has a 2006 f90 with only 200 hours. The trailer is only 3 year old. I will go with the radar, cover for the back and AIS for my new chartplotter as suggested.

I hope if I take care of this, this work for me for my retirement.

Everything for the boat seems expensive, yet the times I share on the water with my wife camping and my boys fishing is priceless. If life is about making happy memories, then time spent on the water is where most of them are made!

C-Val
 
C-Val":2wweguly said:
I really appreciate all your thoughts and insight into what is considered a "need" for preparing my boat for retirement.

Its an older 1988 angler but has a 2006 f90 with only 200 hours. The trailer is only 3 year old. I will go with the radar, cover for the back and AIS for my new chartplotter as suggested.

I hope if I take care of this, this work for me for my retirement.

Everything for the boat seems expensive, yet the times I share on the water with my wife camping and my boys fishing is priceless. If life is about making happy memories, then time spent on the water is where most of them are made!

C-Val
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C-Val, You are getting the picture. There are $$$ involved, but if you look at those dollars as dollars paid into an investment account, (investing in those priceless memories, safety and peace of mind) then it changes the scale from "hole in the water that you put money into" to "investing in times with family I can never get back" and you see the sunlight instead of the shadows. You will never regret making that investment.

Harvey
SleepyC:moon

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Sleep C
The words you wrote were poetic and amazing. I read them out loud to my wife this morning. She was touched. Thanks

I am so proud to belong to this C Brat family!

C Val
 
C-Val":2hiipqsd said:
Sleep C
The words you wrote were poetic and amazing. I read them out loud to my wife this morning. She was touched. Thanks

I am so proud to belong to this C Brat family!

C Val
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C-Val, Thank you but it is not meant to be platitudes, it just the way it is. I am not biased :wink: just experienced and I'm only passionate about the things I believe in :wink:

Enjoy,

Harvey
SleepyC :moon

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