Retire and buy a boat now?

I've been following this site for a while, and have been going to yacht shows up and down the West Coast for three years. My goal is to buy a boat that I can single-hand but big enough for at least 3 staterooms. I want to be able to go from Alaska to Mexico and beyond, and live on the boat most of the year. Here is the question, and I think I know what many of you will say. Should I get a boat loan and buy a good boat now, or work five more years and buy a great boat with mostly cash? I have a good income from my military retirement, and about a $500k budget either way. I'm just getting tired of working and spending a few weekends a year on my small Rinker. And... I just turned 50.

If your boat buying budget is $500k, you've got plenty in the boat buying budget. The real question, I'd imagine, is how long the income can hold up at a level you'd like it to. The military retirement is nice in that it doesn't go away (but does get devalued). But, 30, 40, even 50 years is a long time.

I guess what I'm saying is the question is probably less about the boat than retirement, in general.

Depends on your age, the amount of retirement, how much you have saved, etc. For us, we want to be able to have the money to buy outright. That doesn't mean we will, if investing will give us a greater return, but we won't borrow if the interest earned isn't out pacing the interest paid by a decent amount. No one can answer your question for you. Only you can do that.

kwalling said:

I've been following this site for a while, and have been going to yacht shows up and down the West Coast for three years. My goal is to buy a boat that I can single-hand but big enough for at least 3 staterooms. I want to be able to go from Alaska to Mexico and beyond, and live on the boat most of the year. Here is the question, and I think I know what many of you will say. Should I get a boat loan and buy a good boat now, or work five more years and buy a great boat with mostly cash? I have a good income from my military retirement, and about a $500k budget either way. I'm just getting tired of working and spending a few weekends a year on my small Rinker. And... I just turned 50.

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Who will be on board, indicated by the "need" for three state rooms, (actually what we call cabins)?

What experience do you have of off shore and blue water cruising?

All boats come with 2 price tags... The buy price is the price of admission only. The second price is everything else and that is determined by what you bought.Size,complexity of systems, area of mooring and use.

Best advice, dont buy a boat.... Rent a stateroom on a world cruise then, die just before you make the final port of call. LOL

OldDan1943 said:

Best advice, dont buy a boat.... Rent a stateroom on a world cruise then, die just before you make the final port of call. LOL

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Thats old lady/old man lifestyle. The guy wants some adventure!

Come on guys, help a man out!

Personally I would do it. You never know what can happen. Oh and welcome aboard.

I vote for retire now, but rent the boat. [emoji6]

Think how long you can cruise on a ship as opposed to buying, the upgrading and maintaining a boat. CHUCKLE

Go now.
You can get a decent boat for half that coin, even less and have the other half in the slushfund for diesel and maintenance.

It will take you about 1-2 years to set up and become proficient with your new boat in order to do blue water cruising.
So maybe keep working for another 5 years, but get serious about a boat in the next 2-3 years. Then if you think your ready to take off once the boat is outfitted the way you want it, go!
This is sort of how we approached it. We enjoy the cruising a lot and have close to 15K NM so far. We are on our way to Mexico now.
By the way, you say you want 3 staterooms or cabins, but want to be able to single handle her. Our experience is that the guests you think will come, wont. The guests you dont expect will. Bow and stern thrusters are wonderful (I highly recommend them) for single handling.
BTW, I’m retired Military/businesss owner also. But dont wait too long!

OldDan1943 said:

Think how long you can cruise on a ship as opposed to buying, the upgrading and maintaining a boat. CHUCKLE

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Not long.
At $2000/week++ PP that's $200k/year for 2 people.

Since you will have the option to pay cash in a short time, I vote for that. In the meantime you can charter while you are still working. You will be thankful for not having a boat loan as well as all of the other costs of ownership. At least I am. And I am also on a pension.

There was a older woman who decided to live on the Queen Mary for 10 mos/yr. The other two months were spent visiting family. She said it was significantly cheaper than a retirement home (and way more interesting).

ssobol said:

There was a older woman who decided to live on the Queen Mary for 10 mos/yr. The other two months were spent visiting family. She said it was significantly cheaper than a retirement home (and way more interesting).

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Must have been a flash retirement home.
$2000/week ++ pp on most decent cruise ships

They may have given her a cut rate if she stayed there long term. But some homes are in the $5 to 7K range per month if you are paying. My mother in law is in a home that costs $425 per day.

Comodave said:

They may have given her a cut rate if she stayed there long term. But some homes are in the $5 to 7K range per month if you are paying. My mother in law is in a home that costs $425 per day.

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Wow, my grandmother, recently passed was in a nursing home on the Gold Coast near the beach and parklands, well staffed, modern, nice grounds and surrounds, pretty much like staying in a decent hotel.

Single room with ensuite and all meals for $60/day


https://www.bluecare.org.au/aged-ca...ource=gmb&utm_campaign=bcgold13&utm_content=c

Simi 60 said:

Must have been a flash retirement home.
$2000/week ++ pp on most decent cruise ships

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A fancy retirement home like ones I've seen comparable to what you'd get on the QMII in regards to furnishings, food, private room, activities, etc. is probably going to run you US$6K/mo at the very least. Often they have a move in fee of a couple of hundred thousand $ just to get in the place.

A Medicare paid facility is not going to be anywhere like even the lowest class accommodation on a cruise ship (except for maybe the size of the bathroom) and is still likely to cost hundreds per day for a semi private room. My FIL was in a nursing home and once had to spend the night in the hospital. It still cost him over $200/day for the nursing home room even though he wasn't there and used no services.

What are your qualifications, other than financial resources, to believe purchasing a large boat is suitable?

ssobol said:

A fancy retirement home like ones I've seen comparable to what you'd get on the QMII in regards to furnishings, food, private room, activities, etc. is probably going to run you US$6K/mo at the very least. Often they have a move in fee of a couple of hundred thousand $ just to get in the place.

A Medicare paid facility is not going to be anywhere like even the lowest class accommodation on a cruise ship (except for maybe the size of the bathroom) and is still likely to cost hundreds per day for a semi private room. My FIL was in a nursing home and once had to spend the night in the hospital. It still cost him over $200/day for the nursing home room even though he wasn't there and used no services.

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We usually voyage on cruise ships for under $100 per person per day, double occupancy.

If you want to do it now, pay as big a down payment as you can, then finance the remainder. Figure cost of boat payments in w/ rest of ongoing budget.

OP: As you can tell from the direction of this thread, DON'T listen to us for your financial advice. Lol

Plus, I have been told, good, service oriented nursing homes want a large piece of your "pie" after you die.

gkesden said:

If your boat buying budget is $500k, you've got plenty in the boat buying budget. The real question, I'd imagine, is how long the income can hold up at a level you'd like it to. The military retirement is nice in that it doesn't go away (but does get devalued). But, 30, 40, even 50 years is a long time.

I guess what I'm saying is the question is probably less about the boat than retirement, in general.

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... that it is a retirement question.

When do you have enough income (pension/savings, whatever) to support the retirement lifestyle that you desire? This is a question that only you can answer.

Personally, I reach that point in 2 1/2 years when I turn 62, as this is when it all lines up for my wife and I. Could have retired at age 56, but we like to eat 3 meals a day!

And welcome to the forum!

If you haven't read it yet, we always point new folks to the Boat Search 101 thread, as this is an excellent place to start thinking about your next boat.

Jim

I quit work when I was about 56 and started SS at 63. I am 76 years old now.
I recommend a person retire ASAP. SMILE
Just dont sit and vegetate.

Don't call it retirement, just a new phase of life, you also don't need expensive, but you do need seaworthy, fresh well maintained systems is the key, some refit is fine as well, plus helps with know how everything works.

Just GO!

kwalling said:

I've been following this site for a while, and have been going to yacht shows up and down the West Coast for three years. My goal is to buy a boat that I can single-hand but big enough for at least 3 staterooms. I want to be able to go from Alaska to Mexico and beyond, and live on the boat most of the year. Here is the question, and I think I know what many of you will say. Should I get a boat loan and buy a good boat now, or work five more years and buy a great boat with mostly cash? I have a good income from my military retirement, and about a $500k budget either way. I'm just getting tired of working and spending a few weekends a year on my small Rinker. And... I just turned 50.

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Why 3 staterooms?

You currently have an express boat, are you expecting to continue to have fast as a speed option, or are you ok with the displacement speed of a trawler? That right there will be your earliest fork in the decision tree.

For the kind of travel you mention plenty of folks do it quite well at 8 knots. Trying to do that at 20+ knots will be considerably more expensive with regard to fuel costs (and add the logistics of finding fuel or carrying enough).

Make no mistake, any boat you buy will not be an investment. Any money you spend will be GONE. Sure, there's the potential for some return if/when you sell it, but it will not appreciate in value. Factor on-going cost of ownership (slips, maintenance, repairs, etc)... I see 10% of purchase price often mentioned and my experience generally supports that. Some cost more, some cost less... all cost plenty!

I agree with many of the others. Go now, dude. You have no guarantees about the future. Go while you still can. Make the largest down payment you can in order to keep the loan payment down. It'll take you a while to find the right boat, get it refitted the way you want it/need it, and get comfortable enough with it to be able to single hand it. You'll probably want something with an inside pilot house and at least one pilot house door (one on each side would be better for single-handing). That'll make it easier for you to quickly step outside to handle a line. John (Crusty Chief) is right about bow and stern thrusters making single-handing easier. The do make external models now that can be retrofitted without weeks in a boat yard.

John