The third age of retirement: enjoying retirement.
The call of the ocean. A lot of us hear it, but the commute from the ocean to the office keeps us from answering that call. Until retirement.
A boat or yacht can be transportation, freedom, and home all at once. While buying an RV offers the freedom of travel with the comfort of the same bed every night, the romance of a seaworthy vessel – without traffic jams and with the ability to go where the highways end – is powerful. And there are plenty of stories from people who made the decision and loved it. However, it’s not for everyone, and there are a few things to consider before you dive in.
The Initial Expense
The term “yacht” might conjure up visions of James Bond villains or partying in Monaco, but any boat that’s more than 40 feet in length generally falls into the category. According to Boatsafe, you can expect to pay between $200,000 and $500,000 for a pre-owned craft around this size. Of course, buying new or adding luxurious features can make this figure grow fast.
While this might not be an exorbitant sum for a home, you’ll need to factor in some other costs – notably a home base (or two or three) and ongoing costs.
A Home Base
Even if the cost of your yacht doesn’t mean you need to sell your home, when you’re not at sea you’ll want to stay in a slip with access to utilities, groceries, and mechanical repairs from time to time. Living at anchor means getting into a dinghy every time you want to go ashore, finding a place to get off, and then hoping your dinghy is still there when you get back.
Yacht Brokers of Annapolis estimates that for a 40-foot vessel, the average slip fee will be around $1,280 per year in the US, going up to about $7,200 at metropolitan ports.
If your yacht is your only home, even for only a few years, you’ll need to factor in any storage fees for your home possessions. And of course, you’ll need an address for bills and taxes.
Ongoing Expenses
This is where people love to tell horror stories. B.O.A.T. is short for, “Break out another thousand;” or the evergreen, “A boat is a hole in the water into which you throw money.”
Estimates for the cost of living on (and maintaining) a 40-foot yacht can be found in countless online forums and will vary so much it can make your head spin.
There’s the regular hauling of your boat from the water, having the bottom re-painted, engine and electrical upkeep, the usual repairs that come up in any home, and the quick wear and tear of everything from metal to fabric in the sun and salt water.
Then, of course, there will be the cost of fuel, insurance, and the ordinary living expenses of food, clothes, and the little luxuries you’ll still enjoy from time to time – whether at sea or on land.
Don’t forget taxis or rideshares or car rentals if you want to go any distance from your slip.
The final numbers will depend on your yacht, how much you travel, and your lifestyle. The important thing is to find experts and talk to them about your goals and resources so you can be prepared for these expenses.
Too Much of a Good Thing?
Finally, keep in mind that long hours in a confined space – sometimes facing bad weather or bad luck – can be tough. Assuming you’ll be sharing this adventure with your partner or even family, take time to think about how you handle stress and make decisions.
On the Psychology of Sailing website (yes, it’s that popular a topic), Fabio Brunazzi interviewed Giulia Casani, a Chicago-based marriage and family therapist on this topic. She stressed the importance of cultivating a private and independent self, separate from your partner’s. It’s a frequent topic amongst yacht owners.
Anchors Aweigh
A yacht can bring freedom, adventure, and lifelong learning; but it is a big step – bigger than just buying a vacation cabin or a little sailboat. By doing a lot of research, asking questions of others and of yourself, and planning carefully, you can decide if it’s for you. Bon voyage!
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