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List: passagemaking@lists.trawlering.com

From: Scott Bulger

PUP - Cost of cruising, was top 5 boats

Wed, Oct 24, 2007 3:04 AM

e are conservative fixed costs. 1. Boat: a. Payments: None, boat is free and clear b. Licensing: WA state registration $2,400/yr c. Insurance: $5,400/yr (WA to Maine, Caribbean, Panama Canal) d. Fuel/oil/filters: Figure 500 mi/mo @ $2/mi $1000 e. Other maint: $300/mo 2. Other a. Health Insurance: $3,300/yr b. Prescription Drugs: $1,000/yr c. Food: $1,000/mo d. Moorage, country fees, other (highly variable): $700/mo e. Flight home 1x year plus expenses: $1500/yr Total Yearly expenses: $49,600 This is not an extravagant budget, and YOU CAN DO IT FOR LESS, but this is where we are (and a lot of people we meet on the water). Now income, what does it take to fund this? Prudent financial planners will tell you not to draw more than 4% against your invested nest egg. This 4% may be conservative, but for most people they need to preserve that nest egg. So, 4% of 1 million bucks is $40,000/yr. There's a deficit of 20%, so I do believe you need to either have more money invested, or draw more heavily on it, or cruise for less. In the list above 50% of it is fixed, there's not much I can do to influence it. A big part of this is insurance. I traded the house for the boat, so it seems prudent to insure it and even the health insurance premium seems reasonable. So, like it or not, the cost of traveling, really moving and seeing the world does cost a lot. Of course there are lots of ways to skin this cat. These assumptions are based on a very simple financial perspective. If you had money in the bank and wanted to do this at a time in your life that allows you to go back to work, then the 4% becomes moot. Anyway, I just wanted to comment on Bob's perspective, because I can see buying a cheaper boat, but in the long run it's the using it and living that costs the most. As I said, you can reduce these costs but you need to be realistic about your budget and quality of life you want to enjoy. Oh, also as Bob commented, I have NO idea what it's going to cost to buy food in Central American and the Bahamas. My sense is it will be more in some places and less in others. We shop at Costco and so far on this trip we have used marinas a lot. That will change in three weeks. Our use of Marinas will go to at most 50%, hopefully more like 25% or even less. That's what cruising is. This trip includes a lot of East Coast sightseeing, so when we get back to the US I expect any savings we enjoy in CA to evaporate. These thoughts are worth exactly what you paid for them, nada J Scott Bulger, Alanui, N40II, Seattle WA

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