Author Topic: Sail the Caribbean or stay at Megacorp  (Read 20896 times)

EnjoyIt

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Re: Sail the Caribbean or stay at Megacorp
« Reply #50 on: January 17, 2016, 12:26:02 PM »
At first glance I was thinking you need a bit more money before taking the plunge, but I am thinking you may have it all covered.

May I ask you a few questions though?
1)  How has the recent market correction affected your thinking?  Do you still feel like you have enough and are you worried the market will continue going down right as you are about to retire?  The big concern I have is that the only time 4% fails is when you retire right before a big drop in equity prices.

2)  Do you believe you cost of living on a boat is higher or lower as compared to living on land?  For my own knowledge and maybe for other would be sailors would you mind explaining why?

patrickza

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Re: Sail the Caribbean or stay at Megacorp
« Reply #51 on: January 17, 2016, 02:03:01 PM »
If I was in your shoes I wouldn't have had the time to write this post, i'd be shopping for boats and heading out asap!

Alas my country's currency has fallen into the toilet, so my three year dream is now a 7 year dream :(
Even with that I often do the maths on picking up a cheap wharram cat and going boat camping in paradise...

I console myself by living vicariously through others! Here's my favourite couple of young cruisers at the moment, la vagabonde: https://www.youtube.com/channel/UCZdQjaSoLjIzFnWsDQOv4ww

felizcortez

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Re: Sail the Caribbean or stay at Megacorp
« Reply #52 on: January 17, 2016, 07:50:31 PM »
Easy for you to say having a newborn would be easy on a boat.  Giving birth on a boat sounds horrific.

Wouldn't give birth on a boat, I meant you could have an infant on the boat, but give birth in a hospital.  I wouldn't even consider a home birth as an option since too much stuff could potentially go wrong. 

felizcortez

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Re: Sail the Caribbean or stay at Megacorp
« Reply #53 on: January 17, 2016, 07:56:31 PM »
To be quantitative, at 4%, your 1.1M gives you 44000 a year. You OP implies that your base spending is 52-21.5 =30K.

So can you, for 14000 a year, cover your boating/rent/surgery/vacation money?

Should be very doable for them. Especially with the bonuses/vesting/etc in July.

Go on the boat. Talk to the HR guy and go on Sabbatical for a year or two. If they won't make it an official Sabbatical, make it an unofficial one.

A number of land expenses would go away  just to name a few.
1.  No more cars so depreciation, maintenance, fuel, and insurance would be gone.  There would likely be some rental car  etc.  This would save over 1k per year.
2.  Rent would be gone since you'd own the boat.  At $1750 per month currently I would imagine that the occasional mooring fees/dock fees would be significantly less.  Maintenance would be your costs on the boat.
3.  Electricity and Gas bills would go away - that would be around 100 per month combined that no longer exists.  You'd have other expenses - fuel, propane or alcohol depending on the stove etc.
4.  Would probably ditch the cell phone plans we have now since you'll be in other countries - I imagine this would probably stay int he 35 bucks a month range that we currently spend.

On the other hand the rum budget would go way up so maybe that would totally blow the budget out of the water :)

felizcortez

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Re: Sail the Caribbean or stay at Megacorp
« Reply #54 on: January 17, 2016, 08:03:08 PM »
At first glance I was thinking you need a bit more money before taking the plunge, but I am thinking you may have it all covered.

May I ask you a few questions though?
1)  How has the recent market correction affected your thinking?  Do you still feel like you have enough and are you worried the market will continue going down right as you are about to retire?  The big concern I have is that the only time 4% fails is when you retire right before a big drop in equity prices.

2)  Do you believe you cost of living on a boat is higher or lower as compared to living on land?  For my own knowledge and maybe for other would be sailors would you mind explaining why?

Recent market correction is a buying opportunity.  I pushed another 15k in on Friday when it was down.  If it continues to go down, I will keep buying.  I have the cash available now for the boat and about 1 year of spending so those are out of the market and available, so we wouldn't be touching equities to get this done for at least a year.  I actually hope the market continues to go down so I can continue to buy at lower prices.  Yes I'm down about 65k on paper over the last week, but it hasn't really bothered me.  If we have another 2008 type scenario brewing then that would be painful, but I could always work a few more months after July if necessary and earn some more cash. 

I think the cost of living on a boat should go down significantly from what we are currently paying on land.  Yes the expenses will be different, but you hear people spending int he 1500-3000 per month range pretty frequently.  It's one of those things where you can spend more or less, depends on how efficiently you want to live.


Carless

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Re: Sail the Caribbean or stay at Megacorp
« Reply #55 on: January 17, 2016, 08:14:36 PM »
Given that you have a professional education, you can always earn more money even if you have to find another job later.

You can never get more time. 

Tabaxus

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Re: Sail the Caribbean or stay at Megacorp
« Reply #56 on: January 18, 2016, 08:18:42 AM »
Given that you have a professional education, you can always earn more money even if you have to find another job later.

Maybe true for some professions, absolutely not true for others, though it seems like the OP is confident in their ability to get another gig.  I think people often greatly overestimate their ability to slot back in later in life if it becomes necessary.

Ebrat

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Re: Sail the Caribbean or stay at Megacorp
« Reply #57 on: January 18, 2016, 09:01:05 AM »
I don't really have an opinion either way on the practical aspects of it, but based on your responses in the thread so far, I get the impression that you want to go and are looking for reasons to justify it.  So I think you should go.  You know it's what you really want, and money is just a means to an end.  What is the money worth if you don't use it to achieve your goals/dreams?

Schaefer Light

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Re: Sail the Caribbean or stay at Megacorp
« Reply #58 on: January 18, 2016, 09:04:25 AM »
Given that you have a professional education, you can always earn more money even if you have to find another job later.

Maybe true for some professions, absolutely not true for others, though it seems like the OP is confident in their ability to get another gig.  I think people often greatly overestimate their ability to slot back in later in life if it becomes necessary.
I agree with this.  How would you know if your job (or maybe even your industry) will still exist in the future?  And even if your same exact job is still being done, I have to think that most companies would rather hire a young person than someone who's been out of the workforce for years.

ol1970

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Re: Sail the Caribbean or stay at Megacorp
« Reply #59 on: January 18, 2016, 12:51:27 PM »
Your post inspired me to sign up so this is actually my first post!  So I am in the process of doing something extremely similar to you.  A few differences...I am currently 45, I was worth about the same amount of money at your age, but I was not quite burnt out yet...at times I thought  I was, but reality is that it is just life.  I stayed and plugged away until 43 and retired after an opportunity presented itself to sell my company.  I don't regret a bit and it really allowed me to have the next level of financial freedom that although not necessary is pretty damn nice.  I spent the last 18 months traveling the world and unwinding & learning to sail.  So actually now I'm in the process of selling my home in the great white north and relocating to the Caribbean. My plan is to have a small condo/home as a base of operations and a respectable and safe sailboat to spend a few years cruising the area.  If you have never been tot he USVI/BVI's it is amazing...I am doing it!

Now your situation...I too say do it!  Here is the thing, highly skilled and motivated people will always be in demand if you want to come back.  I hired a guy who didn't start his career really until he was 30 but had hiked the Appalachian Trial, kayaked the Amazon, and basically enjoyed life vs. working for the almighty dollar.  We've both chatted about it a lot and it really comes down to happiness.  The happiest I've ever been in my life personally is when I'm doing something adventurous and challenging...others get happiness from raising a family in safe old suburbia, they are both great options if you are happy!  The thing is a different location itself won't make you happy, but doing something you love just might.  There will always be more time to make money.  Hell, I have way more comfortable financial situation than you and I still have doubts and question myself...it is normal, but at the end of the day I know if I wanted to I could always recreate the income.  But really how much is enough?  Only you can answer that...but it is a lot less than most think.

In closing, congrats on your situation...the open water is intoxicating, and when you hoist that main and cut the engine to hear the beautiful sound of nothing with your boat being propelled through the water...priceless!  So if you see a 100lb yellow lab sleeping on a sailboat during your travels, come on over for a sundowner, good luck!

Le Poisson

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Re: Sail the Caribbean or stay at Megacorp
« Reply #60 on: January 18, 2016, 01:49:35 PM »
An option that no one has discussed... chartering. Take an extended vacation, say for a month, charter a boat out of the BVI's and give the lifestyle a go before climbing in whole hog.

I say this because a yacht club friend of ours took his dream voyage to Europe out of Toronto, reached Newfoundland, and decided he had had quite enough of sailing. This was about 5 years ago. As far as I know, his boat is still sitting on a cradle in some Newfoundland outport waiting for another dreamer to come along. It was an expensive mistake for him.

The romance of sailing is a powerful thing (BTDT) but the reality of living aboard can kill the dream quickly if you aren't made of the 'right stuff'. The only way to make sure you are made of the right stuff is to put yourself in the situation as much as possible. In my head, that means chartering some 1980's Tupperware out of the BVI's and going sailing for a month.

I am envious of you as well. Not because of your smart money and ability to chase your dream, but because you found a woman who will participate alongside you. That will go a long way in making your choice the right one no matter which way you go. Kudos on such a strong start and great path.

KiwiMust

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Re: Sail the Caribbean or stay at Megacorp
« Reply #61 on: January 18, 2016, 05:03:38 PM »
Just curious, you say you have had lessons and spoken to people about sailing, have you just as a holiday before you go all out? I was considering doing just what you are, unfortunately with a lot less money stashed, but talked myself out of it, I would definitely give it a test run of at least a couple of weeks before committing. Apart from that I think you should do it, what a great experience!

Greenback Reproduction Specialist

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Re: Sail the Caribbean or stay at Megacorp
« Reply #62 on: January 19, 2016, 02:23:52 PM »
If I was in your shoes I wouldn't have had the time to write this post, i'd be shopping for boats and heading out asap!

+1!!! Lol this shouldn't be a difficult choice... But, I'm not in his shoes, and the offer is tempting... OMY oh so tempting....

felizcortez

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Re: Sail the Caribbean or stay at Megacorp
« Reply #63 on: January 19, 2016, 03:00:53 PM »
Talked to the manager today regarding the position and told him I wouldn't be able to take the position since I couldn't commit to the time frame in the current location.  Step one is done.  It felt weird since this is the first time, I've made a life decision based on my own life factors instead of career advancement.  Feels a bit like committing career suicide, but I keep telling myself that doesn't really matter in our position.  I suppose there will be a lot more get out of your comfort zone moments to come.


mizzourah2006

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Re: Sail the Caribbean or stay at Megacorp
« Reply #64 on: January 19, 2016, 03:32:18 PM »
At first glance I was thinking you need a bit more money before taking the plunge, but I am thinking you may have it all covered.

May I ask you a few questions though?
1)  How has the recent market correction affected your thinking?  Do you still feel like you have enough and are you worried the market will continue going down right as you are about to retire?  The big concern I have is that the only time 4% fails is when you retire right before a big drop in equity prices.

2)  Do you believe you cost of living on a boat is higher or lower as compared to living on land?  For my own knowledge and maybe for other would be sailors would you mind explaining why?

Recent market correction is a buying opportunity.  I pushed another 15k in on Friday when it was down.  If it continues to go down, I will keep buying.  I have the cash available now for the boat and about 1 year of spending so those are out of the market and available, so we wouldn't be touching equities to get this done for at least a year.  I actually hope the market continues to go down so I can continue to buy at lower prices.  Yes I'm down about 65k on paper over the last week, but it hasn't really bothered me.  If we have another 2008 type scenario brewing then that would be painful, but I could always work a few more months after July if necessary and earn some more cash. 

I think the cost of living on a boat should go down significantly from what we are currently paying on land.  Yes the expenses will be different, but you hear people spending int he 1500-3000 per month range pretty frequently.  It's one of those things where you can spend more or less, depends on how efficiently you want to live.

I have been doing research on doing something very similar. Let me know if you want crew for a few weeks :)

It seems to me that in the Caribbean dock fees can get expensive pretty quickly. I've seen bloggers say anywhere from $1-$5/ft of boat and moorings seem to be $15-20/day. But if you are only docking a few times a month, with mostly moorings and anchorages you should be good.

Good Luck OP, I'm jealous. I hope to be there when the little one hits college :)

An option that no one has discussed... chartering. Take an extended vacation, say for a month, charter a boat out of the BVI's and give the lifestyle a go before climbing in whole hog.

I say this because a yacht club friend of ours took his dream voyage to Europe out of Toronto, reached Newfoundland, and decided he had had quite enough of sailing. This was about 5 years ago. As far as I know, his boat is still sitting on a cradle in some Newfoundland outport waiting for another dreamer to come along. It was an expensive mistake for him.

This will be my first step. I will take a few 10-14 day bareboat charters in the BVIs before I buy the boat, but right now I can't get enough of the idea/lifestyle.

ulrichw

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Re: Sail the Caribbean or stay at Megacorp
« Reply #65 on: January 19, 2016, 04:16:46 PM »
[...]

Also +1 for the timeline of sail now because you will be better positioned to start a family while your wife is <35.  (Thirty five is a threshold age for high risk pregnancy - which sounds scarier than it probably is for 99% of women). [...]

This.

If you had said you don't plan to have kids I would be on the opposite side - work a few more years and retire forever.

But if you want to have kids, go now, have a great time for a couple of years, then settle down, raise the kids, kick 'em out, and get the next sailboat :)

felizcortez

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Re: Sail the Caribbean or stay at Megacorp
« Reply #66 on: April 12, 2016, 12:21:20 PM »
Just wanted to provide an update.

We put an offer in on a boat and are waiting for the survey (inspection) date. I haven't discussed my sailing plans with anyone at work yet and was planning on turning in my notice in about a month.   My plans had a wrench thrown in them today as my boss called and asked whether I'd like to make a lateral move back to SoCal where my wife and I both really liked living.  My wife and I both said when we were going through this decision process that an offer in SoCal would make for a really hard decision vs sailing since we really enjoyed living there.  If we moved back to Cali we could buy a boat and ease into the lifestyle more.  That being said, we've been selling our stuff (sold over $1k on ebay and craigslist in the last few weeks) , looking at boats, etc. to execute the current plan of leaving.  Total first world problem, but our resolve is being tested by this offer. 

Financial update since last post.
Current Asset Level $1.213M
Got a raise to $250k


felizcortez

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Re: Sail the Caribbean or stay at Megacorp
« Reply #67 on: May 05, 2016, 04:35:30 PM »
We decided to move to SoCal.  Work made me an offer that was difficult to refuse.  They gave a bonus of 4 months pay grossed up to cover the taxes.  This more than pays for the boat purchase. 

rocketpj

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Re: Sail the Caribbean or stay at Megacorp
« Reply #68 on: May 07, 2016, 03:13:45 PM »
Work two more years.  Four if you can stand it. Give the economy a chance to recover and get a nicer boat.  The 50k boat will have you doing tons of repairs just to set sail.

Depends on the size of the boat and general condition.  We've been looking at the used boat market in the sub 35 ft range.  This is on the smaller side, but with all things boats they are a load of compromises.

Good books that talk about it.

Dragged Aboard - Don Casey
Sensible Cruising - Don Casey
Cost Conscious Cruising - Lin and Larry Pardey

All recommend boats in the sub 35 ft range with simple systems.  The consensus of the books that I've read is that you will always want a larger boat, but go with the one you have now or buy smaller since costs are directly related to length.

Costs are actually exponentially related to length.  Everything gets more expensive the bigger you go - paint, lines, motors, fuel, sails, everything.  And not in a linear way at all.  And you end up dealing with a lot more force on everything as well (heavier boat=bigger sails=more force=harder work)

If it's just two of you then a 32-24 ft boat is plenty, if you are picky.  I crossed the Atlantic in a 31 and was quite comfortable (with 3 other people and a dog).  But I was 21 at the time so YMMV.  I wouldn't go under 30, you start losing a lot of space and comfort, though there are good boats in the 28-30 range.

patchyfacialhair

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Re: Sail the Caribbean or stay at Megacorp
« Reply #69 on: May 09, 2016, 12:37:52 PM »
We decided to move to SoCal.  Work made me an offer that was difficult to refuse.  They gave a bonus of 4 months pay grossed up to cover the taxes.  This more than pays for the boat purchase.

Well since nobody has said it yet, congrats on moving back to SoCal. I'm from there and the wife loves it there; we'd move if the right job offers came along. At your level of income, you will have a comfortable life and will be able to dabble in the boat thing. Win-win in your case.

Le Poisson

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Re: Sail the Caribbean or stay at Megacorp
« Reply #70 on: May 09, 2016, 09:43:57 PM »
Another congrats. If sailing is new to you, consider getting a 4ktsb and go out on race night once a week. A shark or taneed or Catalina 25 or similar will give you low cost sailing and a feel for ownership costs for a $2500 buy in.

By racing you will develop handling skills and learn to read the sky, and you will be forced to use the boat.

Once you're ready to cruise,  you'll have developed into a crew, and understand how boats work, and what you do and don't like. Now you're ready to get a bigger boat.

felizcortez

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Re: Sail the Caribbean or stay at Megacorp
« Reply #71 on: May 10, 2016, 07:56:16 AM »
Another congrats. If sailing is new to you, consider getting a 4ktsb and go out on race night once a week. A shark or taneed or Catalina 25 or similar will give you low cost sailing and a feel for ownership costs for a $2500 buy in.

By racing you will develop handling skills and learn to read the sky, and you will be forced to use the boat.

Once you're ready to cruise,  you'll have developed into a crew, and understand how boats work, and what you do and don't like. Now you're ready to get a bigger boat.

I've done some racing and enjoyed it when we lived in SoCal before.  I am a sailing instructor in our local club.  I was planning to get my Basic Keel Boat Instructor Certification and do it for some side income vs just volunteering.