Decatur, GA, 13-MAR-2019 – There are many blog posts on many websites about how much money it takes to sail. A very wonderful Youtube channel, by a delightful young couple, Justine and Robbie, tells the truth: It takes as much money as you have, no matter how much you have, or how little.
I haven’t seen much in terms of where one gets money to sail: There are some mentions of stopping places to work, legally and illegally, and if you’re under thirty there are working tourist visas in many of the former British Commonwealth countries.
For people like me, it is an IRA (or 401K) and Social Security. The big decision being when does one start taking Social Security?
The Social Security Mantra for the past few years has been ‘‘wait until your seventy,’’ that is how to get the maximum amount of money. But will you? And if it is the maximum, by how much.
The first question is how long are you going to live? My plan has been to live forever, into three digits at the very least. My dad is 91 and going strong. When I talk about him, I mention the very many ambitious projects he is involved in and how he laughs when he thinks about how he never thought he’d be the last one left. He’s outlived his siblings and all 34 of his cousins.
And that’s when my plan to live into my 100s gets a little shakey. Both my grandfathers died at 70. Everyone else went at approximately 84: both my grandmothers, my mother’s brother and her sister, one of my father’s brothers went at 86, I think. His sister went at 77 – life style issues – his other brother at 40 – generally blamed on life style issues. My mom went at 78.
This all makes 84, or so, sound like a more realistic plan.
I did the arithmetic and if I go at 85, waiting until I’m 70, only gets me about $60k more over the twenty years I am collecting… $3,000 per year.
When I visited my financial advisor, he told me I was plain wrong. The difference was $155K. I said that makes no sense, the difference in income is only about $12,000 per year, there aren’t enough years. Roy explained I wasn’t taking into account the annual increases, which are a compounded percentage increase. The number still wouldn’t pass a sanity test. Then he pulled up a graph from some planning software, which flashed the number $155K. This can’t be, I said.
Roy countered, yes, it is right, it is back loaded and the greatest amount comes between 85 and 90. The difference, if we stop the clock at 85? About $60,000, across twenty years.
Here is the graph:
If I start taking money at 65 versus 70, the two lines of accumulation cross at 80 years old. In other words, I will be taking social security for fifteen years before taking it at 70 makes any sense.
What is the life expectancy of a male born in 1954? It is 74. However, assuming I make it to my 65th birthday, my life expectancy jumps to 78, according to Social Security on line. https://www.ssa.gov/oact/TR/2011/lr5a3.html
So, if a man only lives to his life expectancy, even if he makes it to 65, he will still come out better starting at 65 than waiting until he’s 70.
By the way, in percentage terms, how much is $155K, assuming I live until I’m 90?
Social security turns out to be a hell of a deal, if you live long enough. If I live until I’m 90,I’ll take in $974K, almost a million dollars(!) – if I take the money at 65. But 1.13 million, if I wait until I’m 70. 15% more. No, it doesn’t sound like a large percentage to me either, AND I only break even after age 80. (Strangely, if I wait until 66, the total accumulated dollars are exactly the same as if I start taking at 65. Exactly the same.)
When I stopped working, it was because I found I would rather be poor and not working than wait until I had money. (I worked in the newspaper industry; there was only so much despair I could take for so long, especially when sailing was calling.†)
This is how we are finding the money to go sailing: I started pulling from my IRA at 62 (income only, no principal drawdown), and will start Social Security at 65.
† Also, my friend and mentor in many things, Don, sat me down and explained that what I wanted to do was a physical undertaking that I needed to start NOW.
Hi John,
A long time ago I joined the catholic equivalent of the Masons, The Knights of Columbus.
If I remember correctly their motto, without giving away any secrets which I forgot so long ago was
TEMPIS FUGIT, MOMENTI MORI. or TIME FLIES , DEATH IS AT ANY MOMENT. Or something like that.Plus Mom always wanted to wait just a little longer ..and then the accident.
Right after the accident those two thoughts hit and as I always preached to you …Do it now! Nothing tastes worse than a lost opportunity. As you saw Mom’s accident never held us back and thanks to you we even got to England. I think Mom was happiest ever during that time in England. but all that time of the accident we let nothing stop us because we never knew if we’d ever again get the chance to do it and I would never let mom have that taste of a t lost opportunity no matter what.
So my son on the flip side the taste of I did it!! WE did it!!! To this day in my latest project I have people telling me they never thought it could be accomplished….I don’t know what Mead tastes like nor do I have an inkling of Manna but they have to be damn great tasting to match what I’m tasting now and what you’ll taste if you just go pedal to the metal and b–ls to the wall “That’s what I’m going to make happen!” …..and it does!
So to you my son, adventure is just knowing you’re going to try it no matter what. That elusive taste of making IT happen. you’ve seen me all your life and you know ….you know!
Love is the wish for happiness…..I wish you so much love!
Dad
ps I think I still have that poster I made when Mom was in the hospital right after the accident.
The old Indian proverb..
It is said,” Trouble came to pass”…….Nowhere is it said, ” Trouble came to stay!”
I went one morning alone with mom, walking along the Thames with Mom. I had been spending enough time in London, that I knew around the corner Big Ben would come into sight. It was fun to be able to give that gift… not the flights to the UK… walking along and having Big Ben come into sight.
After a while, I think, we had gone to the Tate, we were walking along a busy ‘‘dual carriage way.’’ I flagged down a cab who stopped for us. There was no time to install the ramps that the cabs carry. The driver said that if I could get the two of us into the cab quickly, he’d take us. I muscled that electric wheel chair, with mom in it, into the cab and away we went. I was much stronger then.
Hey Vincent,
You’ve raised a wonderful son whom I’ve had the pleasure of conversing, spending time and working with over the years during our time in the publishing industry. I’ve learned a lot from him and enjoy following all of his adventures, but especially the sailing blogs.
Cheers!
I think your approach to life and adventure is FANTASTIC. As you know, my husband, Richard is still working at 72 because he LOVES creating software to help newspapers. If it were completely up to me, I’d work less. Actually we are working less – shorter days and taking vacations. Not adventures like yours – more like staycations – but not so much of the daily grind. I really enjoyed talking to you and your lady in January. I think you’ve found the perfect lifestyle for you both.
Martha,
It was wonderful to see you and Richard. As you may have noticed, you are both getting mentioned in the blog and noted as ‘‘too cool for cats.’’ I first remember meeting Richard in 1987 at a presentation I gave in San Diego about a mark up language I had spec’ed. Richard asked some insightful and fearless question. I didn’t know who he was at the time. We were all, by comparison, so young, though it did not feel like it at the time.
Will you be writing about your travels under the personal news at your website?
John, Thanks for this showing up on my FB feed. I’ll be taking my SS this year after I hit full retirement age. I do some work still and the penalty of taking it early didn’t make sense to me. For reasons your Dad pointed out, and going against my financial planners advice I’m not waiting till 70. You can’t buy time, and at 65 I’m not the spry 50 something I used to be.
I “we” need to keep traveling and having adventures.
Off the SS discussion: As I read your Dads reply; I couldn’t help but hear your fathers voice and see the young inspirational Scout leader that always gave sage advise and that wink. You’re incredibly blessed to still have him, and his guidance. Stay well!
Pete
Pete,
Thanks for the kind words. Yeah, I am pretty lucky.
I’m sorry we never seem to meet up when I am in Rocky Point. We both do have active lives. As you know, I hung it up at 62. It has been a good decision.
I never really knew your dad. My brother Vin says very nice things about him. I did know your mom. She was quite a woman. We all did pretty well.
Pete,
When I think of you, I see you when were were in Boy Scouts together… no older.
It will be a shock to both of us when we see each other. Joe Spina keeps his appearance with liberal applications of black shoe polish. I have a shiny scalp these days and no shoe polish in my beard.