Retire and buy a boat now?

[BandB]

I've been following this site for a while, and have been going to yacht shows up and down the West Coast for three years. My goal is to buy a boat that I can single-hand but big enough for at least 3 staterooms. I want to be able to go from Alaska to Mexico and beyond, and live on the boat most of the year. Here is the question, and I think I know what many of you will say. Should I get a boat loan and buy a good boat now, or work five more years and buy a great boat with mostly cash? I have a good income from my military retirement, and about a $500k budget either way. I'm just getting tired of working and spending a few weekends a year on my small Rinker. And... I just turned 50.

Wifey B: Heck if I know. I can make such decisions for me, but I don't know you or what works for you. I don't know your tolerance for debt or your health or your retirement income. You don't mention family at all. Or house. Or experience in anything other than your Rinker.

Based on how little I know about you, I'd recommend starting to explore, to learn, to evaluate but would not recommend jumping into anything. Do it like Wayfarer has. He had plans for the future, started just exploring the ideas, got comfortable, intended to wait a bit longer but then the perfect boat showed up and he bought it early.

If you retire now, are you sure you'll never need to work again and you'll be able to support your boating?

 

[ktdtx]

Do It!


As mentioned-buying the boat is part of the cost.


We often buy a boat with thoughts of all we are going to do to it to make it the way we want it..someone advised me once--when you buy a boat remedy all the safety problems and fix what is broken but use the boat as is for a year and then see what you really need to do to it--that list will be different than the one you had pre-purchase.


If financial resources are there--go for it!

 

[kwalling]

Crusty Chief, great perspective, thank you. I am retired Army, but grew up on small commercial fishing boats in Northern California, hence the stateroom confusion. Our boats had neither stateroom or cabin, just a soft spot down below in between gear and supplies. Ironically, my plan is to keep working for five more years and do exactly what you suggested. I am just getting anxious and want to get on with it. Another question: how many full-timers keep a small house somewhere too?

 

[ksanders]

I would buy the boat right now, and use it.

Build skills, and outfit your boat the way you want it.

Then when you retire you can choose what to do, and you will have had fun on your boat, and become a competent captain along the way.

I bought my “retirement” boat at 49 on a 10 year loan that is quickly nearing it’s end. Less than 24 months to go. At that point I can comfortably retire.

During that time I have through use driven needs outfitted the boat for long term cruising, which is really long term staying aboard. I have also learned large boat and open ocean skills.

Oh, I’ve had a BUNCH of fun along the way!

As far as long duration cruising, the plan is to try it. You never know, I may love it, and maybe not so much. You just never know until you try it. My boat could theoretically end up as a local cruising winter condo moored in San Diego. You just never know what direction life will take you.

 

[Ftbinc]

Retire and buy the boat. You will not regret it.
On boats - the best advice i received on this forum "Buy the smallest boat you can live with" It keeps both operating/maintenance costs down AND keeps handling/dockage easier. There are a lot more slips for 40 foot boats than 50. (We have a 36 footer and are very happy she is only 36.)

Paul
KK Manatee "Oma"
USCG 50 Ton Master

 

[moparharn]

1. Thank you for your service.
2. Three staterooms and single hand- not likely it would seem to me, but what do I know.
3. Retire as soon as you can SAFELY do it.
4. Buy with cash now and learn the boat while you work a few more years.
5. In a few more years you will likely purchase another boat that is just right, so make the first one a boat easy to sell. I say this because the jump from a Rinker to a seafaring single handed trawler is a big one. You may not hit it on the first try.
6. I wish I was in a position to consider what you are considering. Live the dream bud-someone has to.
7. Did you eat that Octopus? Tasty?

 

[rsn48]

My first question is - why are you working now? Do you need the income or is it just "habit" and what you are accustom to. One thing I and others have learned is that retirement is much more pleasurable than working.

If you have a military retirement income, can just working part time be the supplement you need to make life more comfortable.

There is an old saying I'm sure you've heard and as I age, I believe it more and more. Are you working to live or are you living to work? A life style of heavy work with long hours which I thought was "living" turned out to be for me a prison without walls. I have found that many of those large boats you see and envy are owned but not used much. Many of those boat owners have the money and income, have the big toy, but don't have the time. They have this expensive toy which they use a few weeks a year, that's it.

Next the boat. In an article in Pacific Yachting written a few years ago a woman writes about what type of boat is best served for cruising to Alaska and back. Her one piece of advise I really agree with is - figure out what size boat you will need and want, then subtract ten feet. You will notice that some are gently trying to warn you away from a large boat.

My experience in the RV world is that most think bigger is better so that eventually the absurd becomes the norm. So a 40 foot trailer with multiple slide outs is considered the go to for many. And in some cases they are well suited to RV full time living. People who want to live full time but not move their unit will most likely find happiness in a 40 footer. But if you are a "on the move" kind of guy in your recreational life, then bigger, especially single handing it, isn't better. Its kind of like owning a converted Grey Hound bus to be an RV, how easy and enjoyable will you find it to drive through Vancouver BC, Seattle, LA, San Diego, San Francisco? If you are hungry and driving the bus, how easy is it to pull into that fast food burger joint because you want something quickly while travelling. Certainly driving the bus is doable, but how enjoyable?

I second the thoughts on a bow thruster and stern thruster if you are single handing.

And next suggestion is just to get your creative juices going. Move away from Redding, if you are planing extensive cruising then you will be doing that anyway. Think of moving to Washington state for a while. Finding the boat will be easier than finding a marina for the boat. I know the northern coastal Washington area is easier for moorage availability. So Billingham or Blaine or even Point Roberts has openings for boats. You can work part time as you become familiar with your boat, make new boating friends who will be willing to go out with you - not that hard. Maybe get a cheap condo while you work on your boating life.

The cruising area in Northern Washington and coastal BC is some of the best in the world, and oh yeah - Alaska. When you can cruise comfortably and skillfully in these waters, you will be able to go anywhere really.

And finally buy and older boat, lets say for around $75,000 and plan on putting in at least $150,000. If I bought an older boat (I did) and plan to use it for extensive cruising, including long distances I'd either re-power or rebuild the engine. Once you have done this you can cruise without the worry of wondering when your motor is going to conk out. And to add controversy, I'd recommend only one engine. The reason for this is that new rebuild will probably need to be replaced 20 years from now, when you are seventy and still have boating life left in you. Repowering or rebuilding twins will be "big bucks!!!" and you just might not want to spend the money needed to repower. Having only one engine is still expensive but doable. (I am 71 and have completely repowered my engine and leg on my stern drive vessel, in fact, the engine only went in on Monday).

Especially have the wiring looked at as many modifications may have been made on the boat and some of it may not be optimal, so to speak. We have many more electrical demands than in the past so wiring that could handle an 80's boat may not be safe for a 2019 boat (or one that has experienced a large refit including electronics and other electrical goodies).

 

[Moonfish]

Saw the post title and immediately said "yes".

Read the OP's initial post and said "yes".

Read *some* but not all posts, and still said "yes".

 

[fgarriso]

Everyone should do it once.

Before you spend the 500k on the boat, cut it in half 250 & 250k.
250 to buy the boat, and 250 for expenses.

The expenses are always more than you plan.

 

[Group9]

This thread is like asking a bunch of crackheads if you should buy some dope.

 

[Simi 60]

.
. But if you are a "on the move" kind of guy in your recreational life, then bigger, especially single handing it, isn't better. Its kind of like owning a converted Grey Hound bus to be an RV, how easy and enjoyable will you find it to drive through Vancouver BC, Seattle, LA, San Diego, San Francisco?

Flawed analogy

We are continually on the move.
We don't drive our boats through city traffic, or at least we don't, the waterways and open water are practically deserted.

When on the move its push lever forward slightly, press autopilot button, sit back in comfortable chair and keep watch.
Easy to do single handed.

. If you are hungry and driving the bus, how easy is it to pull into that fast food burger joint because you want something quickly while travelling. Certainly driving the bus is doable, but how enjoyable?

Where on the water do you find tight places like this?

Driving the bigger vessel is better, more comfort especially when things get lumpy.

If wanting to travel further afield you will appreciate the bigger vessels extra load carrying ability for extra provisioning , more fuel, more water, larger tender etc.

.
I second the thoughts on a bow thruster and stern thruster if you are single handing.

Nice to have but we are 4 years without them and they would be near the bottom of our wish list.

 

[Moonstruck]

This thread is like asking a bunch of crackheads if you should buy some dope.

I like that answer.

 

[JustBob]

To me, buying a boat with either cash or a loan is not the first step. You should really get some experience on different types and sizes of boats. I.e. charter, airbnb, build a boater friend network, that kind of thing.

The chances of getting "just the right boat" on your first try (when moving into the 3 stateroom boat class).. I don't like those odds.

I ended up with a very different boat than what I first imagined. Very happy we chartered and figured that out, rather than having purchased what I thought was going to work.

Like all things boating, buying/selling is expensive. You will pay the broker, surveys, sales tax, it goes on and on. The best advice I got was "buy your second boat first."

That will take some time and thus you'll save more and borrow less. All the best to you.

 

[ddw36]

In my 80s, I look back to a situation similar to yours. I was 57 when I retired and then divorced. I'd long wanted to "set sail for adventure," etc. I bought a 39' Southern Cross in VA, but after a few months, decided sailboats not for me. Yes, I lost a bundle. Experience is a hard teacher.



Looking back, I think a roomier power boat would have been better. I really had no boating experience other than day sailings, so it looks like you at least have boat handling, comm, navigation, etc., skills I didn't have. Also, having lived in the Seattle area in my early & later life, I realize a more realistic goal for me would have been to locate in Anacortes, Port Townsend, etc., to shop for an Albin 36 or the like. (This was 1995.)



Take a yr or two, w/ some instruction, to put into practice all the reading I had done, then explore the San Juans, Alaska Inside Passage, etc. Get used to extended living aboard & eventually setting out for Polynesia & beyond. I would not do so w/ the Albin, but Diesel Duck 382s were coming out in late 90s w/ 1200 gals. fuel capacity. That's what I'd do if I were you.

 

[kwalling]

1. Thank you for your service.
2. Three staterooms and single hand- not likely it would seem to me, but what do I know.
3. Retire as soon as you can SAFELY do it.
4. Buy with cash now and learn the boat while you work a few more years.
5. In a few more years you will likely purchase another boat that is just right, so make the first one a boat easy to sell. I say this because the jump from a Rinker to a seafaring single handed trawler is a big one. You may not hit it on the first try.
6. I wish I was in a position to consider what you are considering. Live the dream bud-someone has to.
7. Did you eat that Octopus? Tasty?

Nicely done, I like the numbered points of advice. You really sum up what others are saying. I am not against buying and selling to move up, but sure would like to get the right boat on the first try. I am also starting to get the point that having a bigger boat may not be the best course of action. Not much family, and friends are dispersed around the world.
The octopus was too cool to kill and eat, I let it go.

 

[kwalling]

Great advice, thank you

 

[markajh]

You have 2 things to consider - one is a spread sheet, the other is your heart. Now when you are young, there is time to make up for less than ideal decisions. As we age and have limited ways to recover in retirement, more conservative decisions should be the over-riding choice. Try to separate the two and look at things realistically. Whatever you do will depend on cash on hand, retirement funds, possible ongoing income from rentals, dividends etc. Do a realistic budget and see if you're in great shape, in the middle, or the out-of-your-mind category Good luck!

 

[Calibre]

I've been following this site for a while, and have been going to yacht shows up and down the West Coast for three years. My goal is to buy a boat that I can single-hand but big enough for at least 3 staterooms. I want to be able to go from Alaska to Mexico and beyond, and live on the boat most of the year. Here is the question, and I think I know what many of you will say. Should I get a boat loan and buy a good boat now, or work five more years and buy a great boat with mostly cash? I have a good income from my military retirement, and about a $500k budget either way. I'm just getting tired of working and spending a few weekends a year on my small Rinker. And... I just turned 50.

If it were me, I would wait for about a year before I make the trip, then buy it with as much saved money as I could budget, then do a shake down in local waters for the year before the trip. Technologies change, and your needs may change. Also if your tired of working then maybe you would consider a different job that would keep you around boats and the boating community. Probably make less money at first, but you may be happier and would certainly glean a lot of boating knowledge and boating friends in doing so. If you have a penchant for helping people, consider getting on as a broker in training. 2 of our best brokers knew very little when they came into our training program and now doing very well. Hope this helps.

 

[BandB]

If you have a penchant for helping people, consider getting on as a broker in training. 2 of our best brokers knew very little when they came into our training program and now doing very well. Hope this helps.

Most of the retail car chains use their own or another large training outfit for salesmen. I know at least one that will only hire those who have previously sold cars and at least one that will not hire anyone who has previously sold cars as they want to train them their way.

 

[Calibre]

Most of the retail car chains use their own or another large training outfit for salesmen. I know at least one that will only hire those who have previously sold cars and at least one that will not hire anyone who has previously sold cars as they want to train them their way.

We prefer the later. That way you don't need to un-train before retraining. Wish you success in your decision.

 

[donaergo]

Hi
Over 20 years ago my wife and I did the same thing. We bought a large live a board and have never regretted it. We bought a used Defever 60 Flushdeck with 4 staterooms and 4 heads. The master has a king sized bed with ensuite head. It will sleep 9 in beds. It has twin Cat 3306 engines, a full galley with full sized kitchen appliances, updated electronics, remote electronic controls for easy single handing docking. Also has bow thruster, and sonar.
I came from a 30 foot sailboat to this trawler. I had no trouble learning how to handle the boat by myself. We have cruised all over the Pacific Northwest and British Columbia. The previous owners even took the boat to Hawaii and Alaska. It is a great long range cruiser and live a board.
If you have the itch - scratch it. You won't regret it.

 

[donaergo]

Almost forgot. We are planning to give up our cruising lifestyle and will be putting the Esperanza up for sale shortly. She is docked at Roche Harbor in the San Juan Islands. If anyone is interested, please reply to me and I will give you full specs. etc.

 

[Comodave]

This thread is like asking a bunch of crackheads if you should buy some dope.

I resemble that remark... You should always be buying a boat.

 

[Imp]

My goal is to buy a boat that I can single-hand but big enough for at least 3 staterooms.

Why? Chances are with 3 cabins such a boat will also have 3 heads, which means a lot more holes in your boat. If you are singlehanding, why do you need all that space & holes? your friends are probably not going to join you. If they do show up, it will be for short periods, not worth your expense in hauling around a huge boat the rest of your life. Get a small boat you can handle & afford. If all your buddies show up, they can bunk on the deck, in the cockpit, on the sole or in the dinghy & have a great time until you decide your really do need a larger boat & a first mate. BTW, your budget will go a heck of a lot farther if you choose to go sail instead of power. (Watch this week's news & see what happens to the price of fuel on short notice.). Don't screw up your retirement for friends--this is for YOU & it is for the rest of your life. Do not squander, grasshopper. If you buy your first bigger boat wisely, you won't lose much trading up, & the bigger big boat (which your might not ever need) will be a very wise purchase. Also do not forget that your after-purchase expenses can easily match your purchase price. They did on my retirement cruising boat, almost exactly. Welcome aboard.

 

[Bryant]

Buy or wait

I've been following this site for a while, and have been going to yacht shows up and down the West Coast for three years. My goal is to buy a boat that I can single-hand but big enough for at least 3 staterooms. I want to be able to go from Alaska to Mexico and beyond, and live on the boat most of the year. Here is the question, and I think I know what many of you will say. Should I get a boat loan and buy a good boat now, or work five more years and buy a great boat with mostly cash? I have a good income from my military retirement, and about a $500k budget either way. I'm just getting tired of working and spending a few weekends a year on my small Rinker. And... I just turned 50.

Great question! And since you asked, I'm going to tell you what I think. I'm also retired military and retired from the railroad. My wife is retired military, and neither of us work anymore, so our situations are similar. You left out how much you have in the bank or invested and that's nobody's business, but if you are going to do what you are talking about, you need a nice bankroll earning interest income or dividends so that you can live off the interest and not touch the capital.

Having said that, I've boated my whole life. Mostly yacht racing with some small power boating and small cabin cruisers. My dream was a GB 32 or 36. I waited till I was 62 to buy my GB. Bad mistake. I should have bought that boat 10 years earlier. I would have had 10 more years to work on it, upgrade it, enjoy it etc.

As to "borrow and buy now or wait 5 years and pay cash". I can tell you, there is a 3rd option. Buy a boat now that fits your needs, that you can afford but that might need a little TLC. Keep working 5 years and take that time to use the boat but at the same time make improvements, repairs, additions etc. There is a lot of satisfaction in taking a boat that you acquire and making it your own. Here is the dirty little secret; there is no cost difference in either option. Buy a "fixer upper", fix it up or buy a "ready to go". In the end, you will have about the same money in both. The delta is, if you buy now, you get an additional 5 years to use it and the satisfaction of making it your own.

Long way around to answering your question. I wish I had bought earlier.
Good luck!

 

[rgano]

I bought a Grand Banks 42 when I was 41 and still on active duty with the Navy in San Diego, so you know what my suggestion is - NOW. A tri-cabin boat is going to be a bit bigger than my GB, but nonetheless doable on the budget you have. Mooring on the west coast will be a big cost for it as will the annual state property tax on it and insurance too. So be sure and factor all that into your decision.

 

[bshillam]

Great question! And since you asked, I'm going to tell you what I think. I'm also retired military and retired from the railroad. My wife is retired military, and neither of us work anymore, so our situations are similar. You left out how much you have in the bank or invested and that's nobody's business, but if you are going to do what you are talking about, you need a nice bankroll earning interest income or dividends so that you can live off the interest and not touch the capital.

Having said that, I've boated my whole life. Mostly yacht racing with some small power boating and small cabin cruisers. My dream was a GB 32 or 36. I waited till I was 62 to buy my GB. Bad mistake. I should have bought that boat 10 years earlier. I would have had 10 more years to work on it, upgrade it, enjoy it etc.

As to "borrow and buy now or wait 5 years and pay cash". I can tell you, there is a 3rd option. Buy a boat now that fits your needs, that you can afford but that might need a little TLC. Keep working 5 years and take that time to use the boat but at the same time make improvements, repairs, additions etc. There is a lot of satisfaction in taking a boat that you acquire and making it your own. Here is the dirty little secret; there is no cost difference in either option. Buy a "fixer upper", fix it up or buy a "ready to go". In the end, you will have about the same money in both. The delta is, if you buy now, you get an additional 5 years to use it and the satisfaction of making it your own.

Long way around to answering your question. I wish I had bought earlier.
Good luck!

Great suggestion. I would vote for buying the boat now. Best thing is you can take your time. Look at a lot of boats and when the right one presents you can make the move. Charter a few along the way to narrow down your search/desires. It's a great plan to have a boat for a few years locally and decide how to outfit it for you and your plans. During the process you might just change your mind and there's plenty of time to do that.

 

[Bryant]

Buy or wait

Nicely done, I like the numbered points of advice. You really sum up what others are saying. I am not against buying and selling to move up, but sure would like to get the right boat on the first try. I am also starting to get the point that having a bigger boat may not be the best course of action. Not much family, and friends are dispersed around the world.
The octopus was too cool to kill and eat, I let it go.

And another thing. I'm a huge fan of not buying with the idea of trying out then selling and buying again. That will cost you a fortune. Do some chartering of different boats, make an honest appraisal of what you want in a boat and what you want to do. Try that idea out first. Do some reading. There are lots of books by people who did exactly what you are talking about and after two years, sold the boat and moved ashore. I can tell you, going from Alaska to Mexico, living aboard and doing what you are talking about is a tall order. I
You will find that in one sense, you need a bigger boat than you think and in another, you need a smaller boat than you think. Chartering different styles of boats will make the meaning of that statement abundantly clear to you. Things you haven't even considered will become very important to you and things you think you want or need will become less so. Experience will teach you what you need and want vs what you think you need and want right now. Chartering different boats is really cheap experience. Whatever you do, don't buy a boat with the consideration of hosting friends or anyone else. Buy the boat you need that fits your requirements. Hosting friends and family will come naturally on that boat.

Finally, let me say that I envy your position and dream. The search alone for what you want will be a great experience. I will just say that you need to be brutally honest with yourself about what you really want in a boat based on what you are really going to do with it, then buy the boat that fits those requirements. We all dream of motoring (sailing) off to Fiji, but most of us are going to cruise the ICW, San Juans, Keys, Bahamas, whatever. You don't need a boat capable of going to Fiji in order to do those things. But if you are really going to Fiji, then buy that boat to begin with.
Free advice is worth what you pay for it, but you asked.
Like that you let the Octopus go.
Good luck on your search and keep us posted!

 

[calicojack767]

Great question! And since you asked, I'm going to tell you what I think. I'm also retired military and retired from the railroad. My wife is retired military, and neither of us work anymore, so our situations are similar. You left out how much you have in the bank or invested and that's nobody's business, but if you are going to do what you are talking about, you need a nice bankroll earning interest income or dividends so that you can live off the interest and not touch the capital.

Having said that, I've boated my whole life. Mostly yacht racing with some small power boating and small cabin cruisers. My dream was a GB 32 or 36. I waited till I was 62 to buy my GB. Bad mistake. I should have bought that boat 10 years earlier. I would have had 10 more years to work on it, upgrade it, enjoy it etc.

As to "borrow and buy now or wait 5 years and pay cash". I can tell you, there is a 3rd option. Buy a boat now that fits your needs, that you can afford but that might need a little TLC. Keep working 5 years and take that time to use the boat but at the same time make improvements, repairs, additions etc. There is a lot of satisfaction in taking a boat that you acquire and making it your own. Here is the dirty little secret; there is no cost difference in either option. Buy a "fixer upper", fix it up or buy a "ready to go". In the end, you will have about the same money in both. The delta is, if you buy now, you get an additional 5 years to use it and the satisfaction of making it your own.

Long way around to answering your question. I wish I had bought earlier.
Good luck!

Pretty much in the same shoes as the OP.....I was thinking this very answer until I came across yours. I was kicking around both "fixer upper" for my last 5 years or save the cash and buy new. Your summation exemplifies what I decided would be the best course of action for me.

 

[FIRE]

Lifelong boater in a near identical position to you. I've owned boats since 16 with my first named the "Busted Flush", second "FoamFollower" then "My Three Tons" and a fishing boat today (Bonus points to any who name what books the first two came from). No military background for me but thank you for yours. Turning 52 in October as is my wife and both of us look forward to the day when we depart the traditional work world, buy a live aboard and cruise the East coast and Island Hop. We have about three more years before "retiring". So...
Been studying the "what to buy" for 10 years and believe it will be a 42 or 44 NordicTug with flybridge. However I am open minded and continue to search to either validate my choice or make new. Single handing on the Nordic tug - I can't say from experience but I am told from the broker it may be stretch but I am young and foolish so maybe!!!
Attending TrawlerFest in Baltimore in two weeks which I am sure you have been to when its in WA - if not then research and go for sure. From the classes available, and what I read about on who attends, it is an ideal place to speak to an avid cruisers group who can give you real world experience answers to your questions. At least I am hoping so.
Buy VS Borrow....For us the plan is to sell our house on Long Island which will easily net the $500,000++ to be turned into a boat. One good thing about NY...ridiculous housing prices and obscene taxes make for an easier retirement when we leave the state! The math will dictate if we buy anything outright or use potentially cheap money from the bank and invest the rest.
Please keep me posted to the direction you take as I am uniquely interested.