Which % of saving would you spend for your cat

[KingGuppy]

Originally Posted by smj

My advice would be to post in a financial forum rather than a cruisers forum.

You're right.

I'll try to delete them to not clog up the post.

EDIT: can't delete. Sorry

[jalmberg]

I would never spend more than 10% of my total net worth on a boat, in a retirement situation. Keep 90% as a golden goose for income.

Of that 10%, I would not spend more than 50% for the boat itself - if your intention is to cruise. You will need the rest for repairs, replacements, upgrades, spares, etc.

If buying a boat for a live aboard which will rarely leave the dock, I would buy a houseboat. It is idiotic to live on a sailboat unless you mean to sail her. If a live aboard, you could get away with spending a higher percentage of your 10%, because less critical.

Just my two cents based on 1.5 years of cruising on a 40 year old sailboat.

[valhalla360]

Originally Posted by Cadence

The only stock market investing I have ever done was buying stocks of the co. I was employed by before it when down the tubes. Buying highway or waterfront property worked well for me. The market seems like a risk. Property doesn't go tits up.

You broke one of the most rudimentary rules of investing (stock market or any other investment). You put all your eggs in one basket...even worse, it's the same basket that held your job, so if the company goes under, not only do you lose your investment, you lose your job at the same time. But you blame the market.

Always surprises me how little time people put into learning about investing and retirement plans when it has such a huge impact on their lives.

In similar way, the OP's intent to spend the bulk of his savings and rely on non-diversified realestate investment plan is similarly risky.

[riki]

Originally Posted by jalmberg

I would never spend more than 10% of my total net worth on a boat, in a retirement situation. Keep 90% as a golden goose for income.

Of that 10%, I would not spend more than 50% for the boat itself - if your intention is to cruise. You will need the rest for repairs, replacements, upgrades, spares, etc.

If buying a boat for a live aboard which will rarely leave the dock, I would buy a houseboat. It is idiotic to live on a sailboat unless you mean to sail her. If a live aboard, you could get away with spending a higher percentage of your 10%, because less critical.

Just my two cents based on 1.5 years of cruising on a 40 year old sailboat.

.....i knew that sailing was a millonaire's hobby......but answers i am getting seem to exclude any chance for a "normal" person to even think about a boat contradicting what i saw in marinas and on youtube where the average sailor is far from being sitting on a coffer of gold: maybe i was wrong.
But hey, we never end learning, and at the end who am i to disagree? In this forum i read about people spending 30/40k to fix an engine.......when a friend of mine just did a full refit of his in Turkey for around 2k.....

[riki]

Originally Posted by valhalla360

In similar way, the OP's intent to spend the bulk of his savings and rely on non-diversified realestate investment plan is similarly risky.

My properties are in 2 different countries and are tourist oriented (3 in Greece bought when the real estate market reached the bottom) and very unlikely to be "risky" (touching wood now).
I am 47, been living in +10 different countries and graduate in economics, not saying i am the smartest kid around the block, far from that, but maybe not the dumbest.

[gmakhs]

Go simple buy a monohull , around 38 feet , you will be happy , you will have enough space , you will have enough money to repair and maintain, you will have space in most of marinas plus fishing ports if you plan to go remote , you will be able to buy a seccond one of you sink that one ,youll continue to save money even through cruising this will give you the ability to enjoy other things except of cruising during crusing.
But the most important of all buy a boat you can handle.on your own , I have seen a lot of big cats or.monohuls (over 40) looking desperate for crew and not really enjoying sailing (not to say that it's not.do able )

[valhalla360]

Originally Posted by riki

My properties are in 2 different countries and are tourist oriented (3 in Greece bought when the real estate market reached the bottom) and very unlikely to be "risky" (touching wood now).
I am 47, been living in +10 different countries and graduate in economics, not saying i am the smartest kid around the block, far from that, but maybe not the dumbest.

Never said you were dumb but you have a very narrow investment portfolio to fund your activities.

People who worked at Enron and invested their entire retirement in it's stock thought they had nothing to worry about because it was a big company and surely couldn't fail. You chose a different investment category but you are similarly non-diversified.

[rabbi]

Originally Posted by riki

.....i knew that sailing was a millonaire's hobby......but answers i am getting seem to exclude any chance for a "normal" person to even think about a boat contradicting what i saw in marinas and on youtube where the average sailor is far from being sitting on a coffer of gold: maybe i was wrong.
But hey, we never end learning, and at the end who am i to disagree? In this forum i read about people spending 30/40k to fix an engine.......when a friend of mine just did a full refit of his in Turkey for around 2k.....

The cheap small monos you see in the Marina are typically hobby vessels for folks who still have a job and a home.
You are trying to do this fulltime with "only" rental income. No job, no home, and no significant emergency funds make this a very different situation.

It all depends on your risk tolerance.

Based on my risk tolerance you need to keep emergency funds that allow you to just step off the boat & return to a land based home, get a job and not ask anybody for help.
For me that would be some 30-50k for emergencies that remain definately untouched unless I have to return home. All other smaller emergencies (dead engine, torn sail, ..) needs to be paid for from other funds.


Others just go with $50 in their pockets, and sometimes it works out well.


Nobody said the YT folks are acting responsible. Some become rich, others end up on GoFundMe.com for their return trip.

[rabbi]

Originally Posted by riki

My properties are in 2 different countries and are tourist oriented (3 in Greece bought when the real estate market reached the bottom) and very unlikely to be "risky" (touching wood now).
I am 47, been living in +10 different countries and graduate in economics, not saying i am the smartest kid around the block, far from that, but maybe not the dumbest.

With regards to tourist oriented homes: It doesn't take much for tourists to stay away. Economical downturn, political turmoil, refugees, even just bad weather.

Not saying its a particularly bad investment. I think its a very good investment for a small part of your money, but not being diversified makes you very vulnerable.

Being a im-mobile asset your government has you at the balls for increasing property taxes, wealth taxes, utility bills, etc.
More so in a broke country like Greece (if your holiday homes are there).

[riki]

Originally Posted by rabbi

The cheap small monos you see in the Marina are typically hobby vessels for folks who still have a job and a home.
You are trying to do this fulltime with "only" rental income. No job, no home, and no significant emergency funds make this a very different situation.

It all depends on your risk tolerance.

Based on my risk tolerance you need to keep emergency funds that allow you to just step off the boat & return to a land based home, get a job and not ask anybody for help.
For me that would be some 30-50k for emergencies that remain definately untouched unless I have to return home. All other smaller emergencies (dead engine, torn sail, ..) needs to be paid for from other funds.


Others just go with $50 in their pockets, and sometimes it works out well.


Nobody said the YT folks are acting responsible. Some become rich, others end up on GoFundMe.com for their return trip.

I agree tokeep an emergency cushion to feel better and be sarer.But i have my house andin a worse casescenario (sink ) i can justmove from the boat to my land house and i am done. And live with my rentals.

[carlosproa]

The bigger the toy , the higher the costs. But do learn how to maintain a diesel, do learn about electrical, as well as haul out maintenance, and you can save $$. The more electrical toys, the more propensity to failure and replacement
Lifestyle will also dictate your cost. If you are used to your Porsche, most probably you like comfort, and being on the hook and mooring vs being on a dock may not be an appealing alternative; big difference in cost as you cruise around.
I have seen and read about people living with as little as $500 a month to over $4,000. You can search YouTube channels and see this difference. If you have an artistic flair and can do filming and editing, you can generate income from Patreons. In YouTube you can see the thrifty cruisers like UMA, sailing KITIWAKE, to cruising in style like GONE EITH THE WINNS

[rabbi]

Originally Posted by riki

I agree tokeep an emergency cushion to feel better and be sarer.But i have my house andin a worse casescenario (sink ) i can justmove from the boat to my land house and i am done. And live with my rentals.

Ahh OK, I overlooked that you keep the house and that this is not part of your funds or income.
Being able to return home on little money changes a lot in my books.

[riki]

Originally Posted by rabbi

With regards to tourist oriented homes: It doesn't take much for tourists to stay away. Economical downturn, political turmoil, refugees, even just bad weather.

Not saying its a particularly bad investment. I think its a very good investment for a small part of your money, but not being diversified makes you very vulnerable.

Being a im-mobile asset your government has you at the balls for increasing property taxes, wealth taxes, utility bills, etc.
More so in a broke country like Greece (if your holiday homes are there).

Can't agree instead with this one, we are talking about properties in EU, not Mexico or arabic countries: if we arrive at the point you talking about, maybe money would be the smallest of the problems.
Diversifing investments is ok if you are talking about stock market for example, but doesen't necessarly apply to real estate unless, as said, you are investing in very risky countries.
Greece had a very complicated situation, but i invested in the islands and, believe me, you can't imagine the difference compared to mainland, nothingandno one is broke here. And talking about real estate sales, they went up crazy this winter and now there are very few properties available and prices went up like 30/40% in no time.
Hey not trying to convince anyone about anything, this is just a "parallel chat".

[riki]

Originally Posted by rabbi

Ahh OK, I overlooked that you keep the house and that this is not part of your funds or income.
Being able to return home on little money changes a lot in my books.

I would never trade my land house for a boat.

[jalmberg]

Originally Posted by riki

.....i knew that sailing was a millonaire's hobby......but answers i am getting seem to exclude any chance for a "normal" person to even think about a boat contradicting what i saw in marinas and on youtube where the average sailor is far from being sitting on a coffer of gold: maybe i was wrong.
But hey, we never end learning, and at the end who am i to disagree? In this forum i read about people spending 30/40k to fix an engine.......when a friend of mine just did a full refit of his in Turkey for around 2k.....

Question: are you talking about retiring on a boat, or just buying a boat?


I originally thought you were talking about retiring on a boat and going cruising, since this is the Cruiser's Forum.


Nevertheless, I don't think we are disagreeing. If you have property producing $4K and $120K in liquid savings, then you are by no means a poor person. Let's say your net worth is $500K, then 10% would be $50K, total cost including fixing it up. That's a lot of money for a boat, unless you are going to live on it and go blue water cruising. Most 'average sailors' own boats that are more like $5K. I certainly never paid more than $5K for a boat until I started looking for a real blue water cruiser.


You cannot do a full refit on a boat for $2K, unless you do all the work yourself in a DIY yard that charges peanuts for hauling and storage, and have a very limited idea of what a 'full refit' entails. Sails alone will be more than that.