Retirement planning - how much does it cost!

canstead

Anarchist
904
47
So, I know a bunch of you are raising your eyebrows, digging out your pieces of string, looking for old threads that I really should have done a search for, but none the less....

...My financial advisor is asking me how much I need to put into the spreadsheet for my future cruising plans.  In my mind there's:

  • Cruising around the Med, trying to stay out of marinas, but inevitably not managing it
  • Cruising the Caribean and beyond, doing what ever!

Plan would be a new of nearly new 45 footer (which I've got the budget numbers for elsewhere)

So the question is - What annual costs should I be putting in the spreadsheet for living and maintenance.

Anyone got any ideas?

 

Zonker

Super Anarchist
9,109
5,026
Canada
Just single person?

How loaded with toys will it be? Lots of electronics?

Do you want to rent cars at a destination and eat in fancy restaurants or a beachside taco stand?

Take a taxi or the local bus to get around?

Fly "home" to see friends and family every year?

Maybe I can guess if you add a bit more info. It's very much lifestyle driven.

 

toddster

Super Anarchist
4,141
941
The Gorge
Some folks over at Cruisers Forum have been posting summaries of their monthly expenses.  It's an interesting exercise, but I don't live any of their lifestyles, so not useful to me.  Maybe closer to you?  

 

accnick

Super Anarchist
2,781
1,896
We budgeted the same amount for cruising that we spent for living ashore.

We live fairly modestly ashore: modest house, no new car every three years, nothing extravagant.

You will spend more on your boat while cruising than you expect. Pay as you go or pay later in much higher deferred maintenance costs.

I’m assuming you don’t plan on eating beans and rice every night, and you enjoy eating out from time to time.

The Med is not cheap, but it is definitely worth it.

 

Santanasailor

Charter Member. Scow Mafia
1,301
684
North Louisiana
Not quite related but very important.  

Retirement, plan on extra time for everything.  Looking back at my journal, I am shocked how much I got done in a day when I was 40 and 50 years old.  Now, even being a very active 72 y/o getting a training ride in, and getting one major chore/honey do done is pretty much a day filling experience.  (or a sail which pretty much takes the whole day)  As active as you want to be, the days for us retirees are just so much shorter than they were for us 20, 30, 40 years ago.  Again, I am the Louisiana State Senior Olympic Time Trial champion in my age group, so I am not rocking chair rider.  

 

canstead

Anarchist
904
47
Just single person?

How loaded with toys will it be? Lots of electronics?

Do you want to rent cars at a destination and eat in fancy restaurants or a beachside taco stand?

Take a taxi or the local bus to get around?

Fly "home" to see friends and family every year?

Maybe I can guess if you add a bit more info. It's very much lifestyle driven.
Two of us.  Not too many toys, a couple of bikes, normal electronics, more restaurants than taco stands, local buses are fine, flights I’ve already got sorted.  Just an average way of life really.

 

canstead

Anarchist
904
47
We budgeted the same amount for cruising that we spent for living ashore.

We live fairly modestly ashore: modest house, no new car every three years, nothing extravagant.

You will spend more on your boat while cruising than you expect. Pay as you go or pay later in much higher deferred maintenance costs.

I’m assuming you don’t plan on eating beans and rice every night, and you enjoy eating out from time to time.

The Med is not cheap, but it is definitely worth it.
That’s a good approach, thanks

 

canstead

Anarchist
904
47
Some folks over at Cruisers Forum have been posting summaries of their monthly expenses.  It's an interesting exercise, but I don't live any of their lifestyles, so not useful to me.  Maybe closer to you?  
Linkie!?

 

Zonker

Super Anarchist
9,109
5,026
Canada
I'd say there is a significant difference of:

(a) this is a long term (>5 year) sort of thing [maintenance and repair parts increase]

(b) if you are crossing oceans [way more wear and tear on gear]

(c) location, location, location

(d) how much you are willing to DIY. Sanding the bottom of the boat yourself or hire a local. Fix the diesel yourself or hire a mechanic.

But very rough ballpark is maybe 20K at the low end and 25-30K at high end.  The Western Med is crazy with requiring you to visit Marinas, where places like Turkey and Greece offer lots of places where anchoring/med mooring is much cheaper.
The Eastern Caribbean is lots more $ than the Western Caribbean (Panama/Honduras/Belize/Mexico). 

I think the big budget items tend to be marina stays and eating out (not a lot of $$ at a time but it can add up)

 

CapDave

Member
262
222
Grenada
Maintenance cost depends how widely you actually cruise and to what standard you want to keep the boat. Far-flung travel with maintenance to a high standard is way more expensive than seasonal cruising from a home base while you defer fixing (as much as possible) what breaks to the off season. Also "fixing what breaks" isn't actually maintenance, it's putting out fires. If you're going to keep the boat a while, and want it to be nice for your enjoyment, you have to go considerably beyond that with upgrades and replacements and etc. And labor is expensive (especially mine), so I very rarely rebuild anything - if I'm going to do the work to remove and replace, I tend to start new. It's more expensive, and it's also faster as you can pre-order new stuff and have it waiting at your next destination. Otherwise it's disassemble, inspect, order parts, wait, wait, wait, reassemble, test, rework, install, test, hope you did the rebuild right, rework. And I have a boat full of newish equipment instead of lashed together antiques. And I still carry a lot of parts so I don't get caught out somewhere and can generally keep things working 24/7/365.

I bought a highly maintained boat, which is a nice thing to have and enjoy living and traveling on. For me the objective is at the end of my ownership to have the boat in substantially similar or better condition to when I started. 

So - a newish 45' boat? Assuming all mod cons (full DC/AC electrical system, generator, aircon, watermaker, W/D, Nav electronics, full safety gear, dinghy & outboard, all furling (?), maybe an electric winch or two (?), bow thruster, shade structures, etc., etc., etc.) I think you can over a 10-year period easily hit $30K/year if you do most of the work (but pay others to do the bottom jobs) and don't go crazy on fancy sails and don't blow up the engine and don't need a full hull/deck refinishing. That doesn't include marina/mooring stays which can sometimes add up when you are making repairs. Nor does it include some of the "hidden" cruising costs like customs and immigration fees, and mail forwarding, and connectivity, and etc., etc. $35K/year wouldn't be crazy at all if some things don't go your way.

Fast, good, cheap maintenance - pick two (at best). I generally pick fast & good, because I'm not getting any younger while I wait for stuff, and I'm betting my life on the boat and her gear, or at the very least betting my comfort.

Hope this helps.

 
Top