Originally Posted by engineer_sailor
I started this thread just to begin to understand the mechanics and even vague numbers. Lots of good info to start assessing if such a trip could ever be possible. The key is to formulate a plan instead of relying on serendipity and/or luck.
Pretty fascinating that people manage these trips. Seems like it's a great experience for all involved including the kids. I am sure it's the right choice for some and not for others
Starting some time around 2006 or so I made a spreadsheet.
They idea of the spreadsheet was to see if the lifestyle cost was theoretically
possible. My figuring was that if I can't make it work in theory
than my odds of making work in practice were pretty slim.
I've taken one of the more recent versions of the spreadsheet, swapped out our real numbers with some basic assumptions to make it look "real", but you can play with it.
It lets you enter things like...
- When you plan to buy your boat (or if you have already)
- Pay cash or finance the boat
- Broad assumptions you can set for expense categories.
- Children in college, how many and when (current set up for two, which I have)
- Retirement funds vs. non retirement and when you can touch them w/o penalty
- Baseline assumptions about post tax returns on invested money.
- Cross reference of your planned expenditure level, versus different monthly levels of spending and your cash on hand (assumed invested) over time.
- Change baseline assumptions about things like college costs etc.
There may be bugs in it, I still found some after years of using it.
The cash flow numbers, if you finance your boat, include your monthly payment in it. You need to fill out the boat purchase information.
I even had one version where we sold today's boat when the kids went to college and bought a smaller one...too complicated for this exercise, but it helped me.
I've uploaded it to my web site. Feel free to download it and play with it. If nothing else the way the numbers change between say, buying a $100K boat with cash and financing a $300K boat make you think.
Here is the file...
Happy to answer questions and discuss.