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  #1  
Old 12-08-2011
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Question On Finances:

The paradigm has changed quite a lot since Annie Hill wrote "Voyaging on a Small Income". When I first read this great. Little book, $100K, intelligently invested, would have been plenty to finance an open ended, indefinite cruise. But the safe, high yield government bonds Annie recommends no longer exist. Today I would not feel secure with a million because there is practically no safe place to park it. Stocks, bonds, mutual funds and other investment vehicles are all out, I think; simply too risky in this economy for someone whose lifestyle involves being out of touch for weeks or months at a time. If you hold your nestegg in cash, inflation eats it up at an alarming rate. Gold may protect you against inflation but you will get no income from it. Gold or silver paper (GLD, SLV etc.) may be just as risky as any other paper. Physical gold? Not if you are traveling to foreign countries in your boat. If you leave it behind, how will you access it from Western Samoa?

Some sort of residual income stream, preferably multiple income streams, not dependent on the market, without the need for constant monitoring is, in my opinion, a necessity. The question is: how to get the flow started and how to protect it.

We have some ideas but would like to get the discussion started.
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  #2  
Old 12-08-2011
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I agree that it is tricky. One thing I noticed on arrival in Australia is that there certificates of deposit were paying quite well - some were more than 5% which is certainly much better than North America. I asked at one of the banks about this for someone just arriving in Oz and was told that you do this with only your passport for ID within the first 60 days of arrival only (it was after this when I asked so went no further). After this you need two forms of Aussie ID like a driver's license, utility bill, etc. Also I have no idea what tax ramifications there might be - I assume there is a tax treaty between Oz and US/Canada, someone's going to get their pound of flesh.

We are lucky. I have indexed pension plan (taught high school in Toronto for 31 years) and have written several books - end of Sept and end or March are always nice when the royalty checks appear. Doing a new book on China now and will be doing a new edition of one of the old books in the new year to keep the income stream going.
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  #3  
Old 12-08-2011
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In my case, I just keep working. Social Security income isn't much, and retirement, according to my wife, ain't gonna' happen until three days after I'm dead and buried. Fortunately, as a freelance writer/photographer, and a musician/entertainer, I can usually find work in every port, and sometimes while at sea.

Next fall will be the real challenge. I'll be heading south down the ICW in early October, making lots of stops along the way, and with luck selling lots of stories to magazines and possibly a hometown newspaper. That should pay all of the sailing expenses including food, dockage and beverages. With any kind of luck, I'll end up somewhere in the lower Florida Keys, playing music in Tiki Bars at marinas and other locations. That money will be sent back home to pay the extortion fees such as real-estate taxes, etc...

While I'm confident there are places where you could invest your money and get a decent return, I'm just not smart enough to do that. Warren Buffet knows stuff like this, but I've never been good at looking into the future of a company and having the wherewithal to make those kind of investments.

I guess some of this may have to do with the age of the person that hopes to make the voyage. If you're an old codger like myself, your spending habits tend to decrease with age. This is probably because there's not a lot of material things older sailors really need. I'm happy as a clam when anchored up in a quiet cove, cooking some real, Polish kielbasa on the grill and sipping an ice-cold Margaretta. Someone half my age might be heading for a high-priced restaurant, sipping overpriced booze and hoping to hook up with an attractive member of the opposite sex. Now that could be an expensive evening.

Now, if you happen to discover that high-dollar-return investment site you're looking for, don't be bashful about sharing the information with the rest of us. Who knows, maybe I could retire before I'm dead--NAH!

Good Luck,

Gary
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Old 12-08-2011
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Multiple income streams from a variety of investments. Occasional work and living below my means has worked for 12 years off shore. Don't put all your eggs in one basket. Also plenty off good dividend paying stocks out there. Try joining the motley fool for some better ideas on investing for the long term.
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Old 12-08-2011
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Quote:
Originally Posted by aeventyr60 View Post
Multiple income streams from a variety of investments. Occasional work and living below my means has worked for 12 years off shore. Don't put all your eggs in one basket. Also plenty off good dividend paying stocks out there. Try joining the motley fool for some better ideas on investing for the long term.
Motley Fool is aptly named in my opinion.

I get my info from Morningstar and do my own research. Otherwise, you are correct. This strategy has been working for us too, so far. Stocks, all of them, are a bad risk and over priced right now, again IMO. Stops are your friend if you are holding equities.

The internet is a terrific way to set up income streams that yield what my friend and "e-mentor" calls "Golden Crumbs"; A cafe press store that yields $50 a month, Google adsense account that produces another $100 or $200 per month,(Have you noticed that our videos now have adverts?) it all ads up. Land based friends of ours are making good money trading baseball cards or comic books on ebay. Not exactly suitable for someone who lives on a boat and is actively cruising, but a possibility for someone more tethered to one location than we are. Working along the way may be right for some people, we have done it. The problem with that is it is too easy to get sucked in and the next thing you know you are an ex-cruiser with a steady job someplace

There are lots of opportunities. You just have to be creative and be willing to do a little work to get the flow started and to maintain it.
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Old 12-09-2011
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Interesting thread. It shows that there are many paths to follow. I plan to be cruising in no more than four years. I'm also on a pension, but it doesn't adjust for inflation. I have about 60k in savings, a little more in other pension plans. My plan relies on two other factors: no debt and no fear. I owe nothing, no credit card debt, no mortgage. And I believe that I can always earn a little more money if I need it or tighten my belt as necessary.
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I like Travlineasy's outlook, except rather have something other than kielbasa on the grill WanderingStar has nailed it on the head, no debt period. If you don't owe, then you can go.

I've lurked for years & decided to finally register. Being in my mid 50's, I'm struggling with this same question, how to get away. For us we could always rent the house out but nothing says welcome home like a burn't out shell. We've got no retirement thanks to poor planning on our part, real estate investments. The economy over the last several years has cratered that. I'm in the bank this morning & looking at what the interest rates were for CD's, my father-in law must be rolling in his grave.

So I think it all boils down to how much do you really need to live a fullfilled life? That answer is different for everyone. After all money is something you need in case you don't die today...

Peace,
Bob
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Old 12-09-2011
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Quote:
Originally Posted by WanderingStar View Post
Interesting thread. It shows that there are many paths to follow. I plan to be cruising in no more than four years. I'm also on a pension, but it doesn't adjust for inflation. I have about 60k in savings, a little more in other pension plans. My plan relies on two other factors: no debt and no fear. I owe nothing, no credit card debt, no mortgage. And I believe that I can always earn a little more money if I need it or tighten my belt as necessary.
Sounds like you are on track. Going cruising while trying to keep up with monthly payments would, I think, be a frustrating proposition. Better to go debt free with less capital, but a credit card or two is a necessity in the 21st century. You may need to rent a car, or by an airline ticket. We had to check into a hotel when Laura got sick on the way down the California coast. We had the cash to pay the bill, but I have never been in a hotel that would take cash or even a debit card. We never allow credit card companies access to our bank account. We send off a payment immediately when we make a charge - avoiding interest and late fees and worry about missing a statement while voyaging.

My main concern nowadays, having been in port for a few months and watching world news every day, is safeguarding the nest egg. What happens if one day, after a month at sea, you pull into port and discover that the government has pulled some funny business and you are suddenly less well off than you thought. Any number of things can happen - stock market crash as in '08, bank failures, EU collapse (That could never happen) Roosevelt banned private ownership of gold in 1933. What's to stop the current regime from doing the same? Then there are wars, civil unrest, natural disasters, the return of the Annunaki and, of course, the end of the Mayan calendar

OK maybe that is getting a little carried away. I would not let the possibility of any of the above prevent me from going cruising. I am just searching for ways to minimize the impact should anything really bad happen. The only thing I can come up with is to diversify as much as possible and beef up any and all income streams.

All ideas welcome
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Old 12-09-2011
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I worry about making the monthly health insurance premiums.
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Old 12-10-2011
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More good stuff. I have and use credit cards, I just pay them monthly. I also have some concerns about the state. national, and world economy. They could cut my pension, or reduce it and my savings through inflation. But those things will affect me if I stay home too. An immigrant cook once told me that he came into the world with two arms, two legs, and a head, he expected to leave with only that, and it's enough to make his way.
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