Crossroads- Retirement and cruise or continue to work?

[Cliff Meima]

Go for it. We are 70 now with great memories of our 10 years on the boat. we kept a log, tonight I will read a few pages while we sip our cocktails.

 

[Al]

I second the idea of sitting down with a good financial planner (unless of course that is your profession) and having them run a Monte Carlo on your retirement plans. That will give you a good idea of how much confidence you will have in your future financial security. My wife and I are essentially the same age as you are. My wife retired a year ago. We aren’t in the same financial situation as you are, but many of the questions you are asking are the ones we asked when trying to decide if we could afford to have my wife retire. Could we accomplish our future goals if she retired? With professional help, we decided we could provided I kept working.

I am a conservative guy. Financial security is important to me. Personally, I’d rather err on the side of being overly cautious than running the risk of running out of money. I’d have much preferred my wife worked another 4 years. If she had, I could have retired 4 years sooner and our financial situation would have been more solid. The personal costs weren’t worth it however.

If I work for as long as I anticipate, AND my retirement investment performance is “best case” I will end up leaving $1-2 million to my kids. If I can’t work as long and my retirement investment performance is “worst case”, I’ll end up having to move in with my kids to survive. Neither scenario is very likely, but I really want to avoid the latter. I don’t have enough personal wealth to worry about leaving anything to my kids. I am fortunate in that they are perfectly capable of taking care of themselves.

On the flip side, my Dad died suddenly at age 74 while on his sailboat. He was still working and my folks were in the first week of an anticipated 6 week cruise. My Mom was left financially secure but I imagine she would have traded away a few thousand dollars in the bank in exchange for a few more long trips on the boat with my Dad.

So, while most will say “just do it”, I would council reasonable caution. If you really can afford it and leave your financial security intact, then go for it.

Guru

cardude01's Avatar


"Very well said David. What I was trying to say, but just not as wel".

In spades!! Nailed, I'd bet, close to many of we TF members in similar situations.
I too, along with my wife of 60+ years retired when we were 59/57. We have never looked back. Living below our means, but well within our needs. In saying, we have now 30 foot trawler after adding an extended swim step, can afford a larger boat and cruise the advertisements each and everyday.
Deep in my heart, our current boat is serving our every need, the dream is worth the sleep.

Al-Ketchikan

 

[Marlinmike]

I would look to setup your retirement now that you are earning good money, like downsizing a house, I realize you like to have a base station, just doesn't need the high expense of a house. Get that boat you want and get it all setup while cash is rolling in, when everything is close to setup - pull the cord and get going on the next phase of life!
All the best!

 

[Comodave]

Just do it. The longer you wait the less you wil be physically able to do.

 

[High Wire]

If you can afford it. Go. I retired 5 years ago and thought I would work part time a few months of the year. Once out there is no way I’m going back. Time is going way too fast to waste at work. Good luck with your choice.

 

[drb1025]

If you can afford it. Go. I retired 5 years ago and thought I would work part time a few months of the year. Once out there is no way I’m going back. Time is going way too fast to waste at work. Good luck with your choice.

I could have written this post. Same situation, but I went back part time and only lasted six months before realizing how valuable time is, and how fast it goes by.

 

[jimisbell]

If you can afford it....thats the theme. I didnt go when I was 40 and now at 82 I dont regret it after seeing the hell that people go thru in their latter years because they went cruising before that could afford it. I thought I could afford it at 40, boy was I wrong.



Be aware that you will probably be forced ashore at some point in your life by health or age. Will you be able to support yourself then?


I have several friends that didnt expect to live to be 70 and now at 90 they are destitute and kids wont have them. I retired at 62 expecting to have died at 55 because all my ancestors did. Surprise, Surprise, I am now 82 ad recently bought a trawler. In the first 5 years of retirement I didnt think much about securing a future since I thought I would die before the money ran out. I didnt, and after 5 years we were getting real thin and had to sell some old coins just to pay our property taxes. In the last 15 years I began to take a long life seriously for the first time and began investing (realestate) to keep from going under. In 15 years I have built (NO, Obama didnt build it) a realestate empire that will take care of me if I dont ever die. NOW I am going cruising.


The couple I bought my 44' Bruce Roberts CC Ketch from retired at 45, sailed for 10 years and came back. Sold the boat to me for less than he paid for it.....($50k).....not enough to buy a house.....no credit rating because he was gone from the grid for 10 years...and in bad health with no insurance.


Look at what you will do when you come back ashore without a job and gone so long you cannot get back into the workforce. SS will NOT cut it. Better to be independently wealthy.

 

[RT Firefly]

Life is a roll of toilet paper. The closer to the end you get, the faster it goes...

 

[ksanders]

Everyone's situation is different. As Cardude mentioned earlier, a big factor is what your retirement plan consists of. I don't have any type of pension. I only have my assets and my retirement savings. As such, my future income stream is a lot less secure and variable. My wife does have a pension, but she was a teacher and she retired after 25 years at 58. Since she was younger than the full retirement age of 65 for the WA state teacher retirement system, she receives significantly less than she would have otherwise. Even so, it at least covers our health insurance and medical care and will continue as long as she is alive.


If someone can retire with a pension (a rarity these days) then that does provide an easier way to plan for the future. For those with no pension, it may be better to have a little more in retirement savings than a little less. Another factor is taxes. Right now the president has given me a huge tax break since all my income is pass-through and only 80% of it is taxed at all. That makes my income even more valuable.

Agreed, pensions provide a sense of income security that is difficult to save for.

 

[MurrayM]

Life is a roll of toilet paper. The closer to the end you get, the faster it goes...

Hilarious, but a sh**ty outlook

 

[jimisbell]

Life is a roll of toilet paper. The closer to the end you get, the faster it goes...

And the closer to the end, the more toilet paper you need. And, often, in a big hurry!!!

 

[ben2go]

I know this has been discussed in multiple ways but I think as I struggle with this important decision I wanted to get fresh opinions and feedback from the Forum members-that I believe understand and that I have a connection to— even though I may not have met many of you I feel connected in a way that I can not describe to the non- boating world- so yes I value your honest and thoughtful opinions.

I have a job that pays tons of money with great benefits-kids basically grown-currently both wife and I have relatively great health, we own a beautiful new trawler, I am in early 60’s , she late 50’s,- want to do loop,Caribbean, Alaska, etc. and we can walk away from our jobs and financially be ok- still keep land home and Trawler—would have to tighten our belts and fine tune our budget. Won’t be anything left for the kids though-

She says let’s do it ! She by the way loves the boat and cruising as much or more than me— I am a very lucky man for sure!! We don’t know what the future holds and if we work and accumulate more $, we may be stronger financially but I feel we will miss an opportunity at this wonderful stage of our lives. Going to be a struggle to continue to work mentally when our hearts are focused on the world of boating, diving,fishing, exploring, meeting new friends!

Should we continue to work and take the safe route financially or should we go for it and pursue our dreams??? Your thoughts are most welcome [emoji120]

I am 41 and in not so great health. I have been wanting to cruise the loop including the Canadian portion since I learned of it in my mid 20's. I worked to take care of my family. I didn't save anywhere near enough $$$. My health problems took that away from me and my ability to hold down a job. I thought I had many years before I needed to plan for retirement. Nope. I was on my back in and out of the hospital at age 30. Lost my dream of being a pilot and working in the aviation sector a year after I got into it.


At this point, I don't know if I'll see 60. I'm trying hard too. Wish I would have chased more of my dreams before the family days. Maybe that would have made it easier to incorporate them into my established lifestyle of boats and aero planes.



If you have the means, do it. Don't let it slip away. Sell everything you can. Rent out property or work it through AirB&B if you live close to a location people would like to visit. Then go live the dream. It's easier when you have a supportive spouse to stand with you and the means to do it.

 

[Ken E.]

Do it now while you're healthy. I'm 70 and put a lot of friends in the ground that thought they had more time. Health can change in an instant.

+1. I'm also 70. Make the break sooner rather than later. Good health is precious and might be fickle in the future. The only certainty is now. Go for it.

 

[RT Firefly]

Greetings,
Holy crap! You're all old farts!!!!

 

[jimisbell]

Greetings,
Holy crap! You're all old farts!!!!

Yes, but old ones are not as odoriferous as fresh ones.....

 

[Simi 60]

Do it now while you're healthy. I'm 70 and put a lot of friends in the ground that thought they had more time. Health can change in an instant.

Exactly and have done the same.
We walked away from jobs and land at 50
Wife was a secretary I was a burned out tradie so not big income by any stretch.
But did get what income we did get working for us from an early age.

 

[Lou_tribal]

My wife will have her pension in 8 years at 55 and I will be 51, and if things go as planned (yeah nothing goes as planned) we will be able to retire together. While revenue will drop we should have enough to be able to enjoy life together, and we will accommodate ourselves of what we have provided we are together.

L

 

[Pluto]

I know this has been discussed in multiple ways but I think as I struggle with this important decision I wanted to get fresh opinions and feedback from the Forum members-that I believe understand and that I have a connection to— even though I may not have met many of you I feel connected in a way that I can not describe to the non- boating world- so yes I value your honest and thoughtful opinions.

I have a job that pays tons of money with great benefits-kids basically grown-currently both wife and I have relatively great health, we own a beautiful new trawler, I am in early 60’s , she late 50’s,- want to do loop,Caribbean, Alaska, etc. and we can walk away from our jobs and financially be ok- still keep land home and Trawler—would have to tighten our belts and fine tune our budget. Won’t be anything left for the kids though-

She says let’s do it ! She by the way loves the boat and cruising as much or more than me— I am a very lucky man for sure!! We don’t know what the future holds and if we work and accumulate more $, we may be stronger financially but I feel we will miss an opportunity at this wonderful stage of our lives. Going to be a struggle to continue to work mentally when our hearts are focused on the world of boating, diving,fishing, exploring, meeting new friends!

Should we continue to work and take the safe route financially or should we go for it and pursue our dreams??? Your thoughts are most welcome [emoji120]

As my advisor said, “you don’t want to be the richest guy in the cemetery”.

 

[hjorgan]

I tell my kids we are spending their inheritance early so we can all enjoy it. I'd love to leave the kids a fortune but selfishly, I worked for it. Why not enjoy it? They are set up with a college education and all the help I can give them today. Lot more than I started with anyway.

 

[alormaria]

Go. Now.

 

[IRENE]

Money, time, health...you have these...go now. You can come back in 10 years and start a business if you need more money.

 

[mahal]

Go. Now.

I think he did.

 

[Turner]

I know this has been discussed in multiple ways but I think as I struggle with this important decision I wanted to get fresh opinions and feedback from the Forum members-that I believe understand and that I have a connection to— even though I may not have met many of you I feel connected in a way that I can not describe to the non- boating world- so yes I value your honest and thoughtful opinions.

I have a job that pays tons of money with great benefits-kids basically grown-currently both wife and I have relatively great health, we own a beautiful new trawler, I am in early 60’s , she late 50’s,- want to do loop,Caribbean, Alaska, etc. and we can walk away from our jobs and financially be ok- still keep land home and Trawler—would have to tighten our belts and fine tune our budget. Won’t be anything left for the kids though-

She says let’s do it ! She by the way loves the boat and cruising as much or more than me— I am a very lucky man for sure!! We don’t know what the future holds and if we work and accumulate more $, we may be stronger financially but I feel we will miss an opportunity at this wonderful stage of our lives. Going to be a struggle to continue to work mentally when our hearts are focused on the world of boating, diving,fishing, exploring, meeting new friends!

Should we continue to work and take the safe route financially or should we go for it and pursue our dreams??? Your thoughts are most welcome [emoji120]

If financially it adds up RETIRE!!!!! I retired 2 years ago, been the best 2 years of my life. Work and money pales in comparison to what lies a head!!! Live the life you have been working for, don't hesitate, go for it! RETIRE!!!!!

 

[johnma]

I'm 69 now and my wife is 68. We retired 2 years ago. It was the perfect time for us. All long term obligations were paid for (house, boat, cars), and we are financially secure. You should talk to a financial planner and think long and hard as you could live to see 90 plus. if you can do that comfortably, go for it. I got cancer at 65 and thought that i was screwed. Luckily I am now cured. These last two years have been the best in our lives.
John

 

[Simi 60]

I always wonder how good financial planners are.

If they are so good at what they do why are they still working instead of retired and bobbing around on a boat somewhere with an income stream coming in?

Actually, I don't wonder how good they are at all
The simple fact that they are still working while we are on the water tells me all I need to know

 

[menzies]

I always wonder how good financial planners are.

If they are so good at what they do why are they still working instead of retired and bobbing around on a boat somewhere with an income stream coming in?

Actually, I don't wonder how good they are at all
The simple fact that they are still working while we are on the water tells me all I need to know

Huh?

Some are still working, some are retired, just like the rest of us.

What a dumb statement.

 

[ksanders]

Thinking about the living until you are 90 thing...

Yes, we have more and more people living well into their 90’s

What I am not seeing is many of these people leading active lifestyles (like cruising) to that ripe old age. People in general seem to slow down, it’s a fact of life.

My dock in Seward Alaska is a heavily visited area for cruisers. I suppose that we are on everybodies bucket list, and that’s great! What I see is a whole bunch of cruisers every summer in their 60’s. I see a few that look to me to be in their 70’s, and I do not really see any that look to be in their 80’s.

I will say that the people I see coming off of the cruise ships tend to be a bit older. I see a large number in their mid to late 70’s doing things like taking cruises, just not so many piloting their own boats to do it.

Not to say that we cannot all come up with examples of 80 year olds doing jumping jacks, but it seems to me that you had better have had your boat adventures by your mid 70’s or you risk not getting to have them at all.

Boat and dock life is pretty physical in nature. Just the walk from my boat to the parking lot is 1/4 mile. Crawling around engine rooms, and doing the work to maintain a boat is physical as well. We all need to take that kind of thing into consideration, and not over estimate our physical abilities at an age where our bodies are changing fairly rapidly. Times that by 2 when you have a spouse and it’s easy to miss your “cruising window”.

 

[Simi 60]

Huh?

Some are still working, some are retired, just like the rest of us.

What a dumb statement.

I've yet to meet one that retired young have you?

My old man was a financial planner, he was working until he was 67 and barely makes ends meet now.
One of my best mates is also a financial planner and will also be working to past official retirement age.
The one thing they both have in common is living beyond their means.
Borrowing money for depreciating assets and instant gratification

Plenty of financial planners I have met socially over the years through both of them had similar traits and guess what, they are still working as well.

Add: we took none of the advice from our financial planner contacts and retired at 50 debt free, owned home and income stream.
If I had taken their advice we would have been wiped out in the GFC and working into our 60s with them.

 

[Simi 60]

Let's not forget that it was financial planners that advised countless people to invest everything plus leveraged funds and then they lost the lot during the GFC.

Most of those people will never recover.

 

[BruceK]

There comes a point when we may feel we have planned and accumulated "enough". I prefer my own advice to that of financial planners who are often captive in their advice to the organization they associate with.
It sounds like the OP is ready to make the decision, and is well supported by his wife. But only they can decide if the nest egg is sufficient,it depends on lots of things, lifestyle, wants (vs needs). Being debt free with passive continuing income would be persuasive.
Be aware the economy can change, taxes can change, etc.What do you predict with the economy. Are we approaching a 2008 GFC Mk.2? Maybe not, but I`m seeing credible predictions of a recession in 2020. Govts are fond of moving the goalposts after you carefully set yourself up for the future under the rules they said/lied would continue. A buffer between what you have and what you need, a kind of contingency allocation, would be good.
As with all difficult decisions, sit down together, put pen to paper or finger to keyboard, list the pros and cons. A decision will emerge.