28 interested in retiring on a sailboat..where do I start?

[mrb258]

My name is Matt and I am a 28 year old Physical Therapist. I have a lot of debt in student loans. I have been trying to contribute 6.5% of my biweekly income into my TSP account. What else can I do? I do not have a Roth IRA and right now I cannot afford the $5000 buy in to get one started. Any helpful suggestions from anyone to get me on my way to retire early?

thank you

[aaronc879]

With your profession, you make more than enough money to save $5000/yr for a roth. If you can't seem to come up with that small of a sum then you are overspending somewhere by a large margin. Track your spending and make cuts to non-essentials. What is the rate on your loans?

[travelover]

Welcome Matt. Good for you for starting to get serious about saving and investing. Time is on your side.

Start by investing in yourself by reading some books on this list. I like the Boglehead's Guide to Investing book as a starter. You can get these from the library or buy them inexpensively on line, used.

Investment Books

You can start a Roth at Vanguard with as little as $1000 in their STAR fund. Or you can open a Roth IRA at a bank or credit union with even less - $5000 is the maximum, not the minimum.

As Aaron has mentioned, the key is living on less than you make and investing early and steadily.

[mnopqr]

I opened Roths for my kids at Schwab. Their minimum (if they even have one) is very low. One of the Roths was opened with $125, which was 2 days of babysitting earnings.

[wsmurdoch]

In 2004 I retired at 53, bought a 1988 34' Pacific Seacraft, and since retirement my wife and I have spent 3 to 5 months each year on the boat and the rest of the time at home. The last three years we have gone to the Bahamas leaving North Carolina in January and returning in June. The whole trick is to live below your means, invest the extra cash intelligently, and keep the dream alive. With luck and persistance you can do it too.

Bill Murdoch

[tgotch]

As far as living aboard, you might want to google "liveaboard forum." There is a lot of good information there regarding living aboard and associated costs...

[low bidder]

If you're going to live on a saleboat, make sure you can do most repairs yourself. That can save you a bundle. Repairs can be your biggest expense. I built my boat, which was an ENORMOUS savings plus I could fix most everything on it. You know what they say - Boat: A big hole in which to throw money.

[BUM]

Get a boat. Set sail. Leave your debt behind. Just kidding, maybe...

[DangerMouse]

I suggest you read the Bumfuzzle blog and see how you feel afterwards. A couple age 28 threw it all in, bought a boat and sailed around the world. You might enjoy reading their adventures and it might inspire you to do the same or help decide it's not for you. It is a good read.

[wsmurdoch]

As I said in an earlier post, we split our time between home and the boat. It is a lesser comitment to sailing than traveling around the world. My wife kept a blog of our trips to the Bahamas primarially to keep the kids up to date on what we were doing and cut down on the duration of the $1/min cell phone calls.

[moderator edit]

Plans are to leave again next week.

Bill Murdoch

[Brat]

Sail-boaters often forget that their boat needs maintenance. You need to haul it out every couple years to clean and maintain the bottom.

Many marinas prohibit liveaboards, before you buy make sure you have a place to tie it up.

[wsmurdoch]

I placed the link to my wife's blog in the About Me tab of my profile. Just click on my name.

Bill Murdoch

[low bidder]

Quote:

Originally Posted by Brat Sail-boaters often forget that their boat needs maintenance. You need to haul it out every couple years to clean and maintain the bottom. Many marinas prohibit liveaboards, before you buy make sure you have a place to tie it up.

Marina fees, hauing fees, and repairs can often bust the budget. Having a place to tie up is a must. We had a house on the canal leading into the Calousahatchee river and often let fellow boaters tie up since we had room on our dock. Prices are so low now, it's worth finding an empty lot on a canal with intercoastal access for a home-port.

[Brat]

Good point, but be sure that you have anchorage lease and the right to construct a dock. IMHO you are better off buying a lot with a dock and a tear down dwelling then rent the dwelling. Don't abandon the dock use even if you just tie up a Sunfish.

In the state of WA, for example, mooring buoy leases are only available to residents of abutting properties. Constructing a dock is a whole other nightmare. In most areas a boat can set anchor so long as the vessel is not in the channel or over land owned/leased by others.

Doing a simple project can involve your city, county, state and the COE.

What to do with waste water is another issue.

[low bidder]

Yes, getting a permit to build a dock can go one forever. Better to find a lot with a dock on it already. Waste water is a big issue. ... and on and on. That's why living aboard is not as simple and cheap as it sounds.