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Old 11-27-2014, 12:13 PM   #43
ksanders
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City: SEWARD ALASKA
Vessel Name: DOS PECES
Vessel Model: BAYLINER 4788
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Quote:
Originally Posted by dannc View Post
Spot On!


By selling The Farm, we can liquidate the house debt, buy the boat with cash and have enough money left over to live for years in Asia and the Pacific. Not having a house and cars saves huge buckets of money. If we sell The Farm, we can retire early and claw back some very precious premium years that would be consumed by working. I would rather have a few extra prime years of life than a house we won't be using and will be an anchor.

Buying The Boat by selling The Farm completely changes, in a VERY positive way, our financial circumstances. Our long term retirement plan was to save enough of our own money to live on and not depend on Social Security but by living in Asia for a few years, we can live very well, but cheaply, on the proceeds of selling the Farm and wait for SS to kick in. It looks like we could live on the Farm proceeds and Social Security for a good 7-8 years before possibly needed to tap our retirement savings. In 7-8 years the investments should roughly double. Our current investments would easily allows us to pay for our land lifestyle at retirement time but if the money doubles....



Selling The Farm and buying The Boat buys us some very precious premium years, drastically lowers expenses, lets us travel to places we really want to see, and ironically, will increase our retirement funds!

Keeping a house we would not even be living in would cost us money, negatively impact our retirement funds and just does not make any sense at all for what we want to do.

Later,
Dan
For your situation, and for many, selling the farm might be a good idea. If one was looking at retirement saddled by a mortgage then selling out for a boat, or a condo or a smaller home makes financial sense. In that case selling the farm might be the only realistic path to retirement.

For others without the burden of a mortgage, selling the farm makes much less sense. If I sold my house today, I could not re-buy it with the same money in 10 years. My house does not represent a value to me, it represents a place where the wife and I can live rent free forever. It also represents the possibility of trading it for another rent free place to live, if we find somewhere we prefer in the future.

Now, if the situation were different, and I'm trying to be honest with myself here... If I could convince the Admrial to sell out or if I were single I could sell my home, and use the cash to retire at 52 and lead a very good life, as opposed to waiting another 6 years for my normal retirement.

The problem with that thinking is that I would then have no post cruising choices. I/we'd be folks with no house, and a boat not worth enough to sell and buy a house. At least not a house in a place and or of the type we'd want to live in.

The choice of selling the farm would be a one way choice. No turning back. Living aboard would not then be a choice, it would be a necessity.

That's what the article was trying to say.
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Bayliner 4788 Dos Peces
Seward, Alaska - La Paz, Baja California Sur
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