Buy, Sale, or Trade ...at least I have some Marks (in this case,dollars)
Good morning, noon, and night wherever you are. I trust your days are blessed. This is my first blog, and it comes to you seeking advice. Its financial, so hopefully not so boring as to not glean a few bits of wisdom, so let's just jump right in.
I am a US citizen working towards becoming an expat when I retire January 15th 2024 (yippi). I'll be relying on social security, along with whatever I can save between now and the big day, as my living expenses as well funds to get that dreamboat.
For beginners, I would like to know what the average median living expense is for a cruiser, just drifting around the Caribbean. If anyone has a page link containing data, that would be awesome.
The short: I hope to retire aboard a "nice" sailboat. One I can sail single-handed (should my Lovesail investment not pan out LOL, god forbid). I recently refinanced my home to 80% of its value.
My dilemma; do I keep the home, add (best bang for the buck) curb appeal while paying it off in 3-1/2 years. Or do I sell it now, get a one-room efficiency with a hot plate, and stuff what I can in a savings account.
The not so short:
Plan-A is to finish paying off my home, which at present has a new 80% mortgage against it. My hope is to not only pay it off but also add as much curb appeal over the time remaining so it brings the best price possible price.
Plan-B is to sell the house as is, take any proceeds and start a simple saving while living in something with a bed and internet. In other words, get my debt to income ratio down so my boat purchase is large enough that I'm not shopping for fixer-uppers, and have a few coins left in savings. Thus live off of of the savings (there may not be any after buying a boat) and retirement.
Keeping the house seems a wise move, in that it provides a safety net should the boat dream fizzle out, or another 2008 hit the banking industry, thus vacuuming out my savings.
Plan-C find a financially illiterate individual similar to myself, trade house for multi-million dollar catamaran complete with a female crew member that thinks I look like Brad Pitt lol. Or perhaps trade for a sailboat that only sank once, and is on the hard in the BVI, ready to fill with money
(BOAT- Bail Out Another Thousand)
For the purpose of calculating, the numbers below are simply arbitrary and considering the effort to post, the numbers don't reflect lottery winning figures LOL:
Present annual income: 100
Payoff amount of home: 100
Potential savings: 50
Home sale price at retirement: 175
Retirement income: 40/month
Boat price: 100
that leaves 125 in savings and 40 a month for living expense. If living expenses were 30, life is good.
Thanks in advance
- Jul 12, 2020
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