Folks I've met have worked hard, saved hard, invested hard, and gone without many, many, many things to now enjoy their retirement.
Worked for the trips around the world. Sure some had some luck like spouses not dying, or kids hitting up not jail, or houses not buring down... but apart from that its just been work and saving.
You may have met some people who have done that, but,as a financial advisor who manages over 500 million dollars of other people's money I'm telling it like it is. For the average middle class person bringing down less than a six figure income over a lifetime taking $300k or more for a five year circumnavigation isn't in the budget.
That said, that same person can retire with a seven figure net worth. let's do some math. Let's say they retire with a 401k worth 1.5 million dollars. That's the lion's share of their investable assets. That 1.5 mil has to support this person or this couple for the rest of their lives. They are done trying to make money. Time to let the money they've saved work for them. No more taking a "shot' in the market. No more investing in a start up business. At this point in life those risks are behind them. BTW, everyone here over age 55 got 1.5 mil or more in their 401K?
This person's income before retirement was $100,000 a year. If invested conservatively that 1.5 mil, if all invested for income, will bring about 4% a year. That's with taking some risk. That replaces $60,000 of the $100,000 income. But there is a problem. If 100% of the assets are invested for income what about inflation? Realistically only 60 to 70% of the assets should be invested for income. The rest for growth as an inflation hedge. Investing just over a million dollars for income at 4% gives us just over $40,000 in income. That 40k will grow every year or should. Of course in a real live case the balance point is someplace in between 40k on the low side and 60k on the high side. Increased risk alternatives abound that could bring the income up to 100k. But the point is, this guy went from making $100k a year saving like mad and is only making 40k to 60k in retirement. He's already short!
Now lets take $300k off the top of those assets for a round the world trip. We are now working with with 1.2 million. Everyone reading this has 1.2 million in the bank right? OK, it's not a bad number, but for our guy it's not enough. At 4% low risk, 100% invested for income, he'll pull $48,000 a year. Less than half his working income.
If he goes the recommended 70/30 he's down to $33,600. He's now making about a third of his working income. Of course social security will kick in at some point. But, does a 66% income cut work for anyone here?
A million dollars is a lot of money until you have to live off it while protecting it. Then not so much!
Again, it's not about tightening your belt. And, for most people it's not about the economics of sailing. It's about the economics of living. Every dollar spent is one dollar less that can used to provide for the future. if you are wealthy enough this is not an issue. For most folks, it is where they live financially.
I deal with this every day and at every level. From joe lunchbox rolling over his 401k to corp exec dealing with his stock options, to high flying business owner deciding how much risk he should take. In the end, the answers are never easy.