Exit Stratagy

I actually have two exit plans. RV until I drop dead OR RV until I no longer have the physical ability to do so. Then retreat to a small apartment where someone else does the maintenance, yard work, etc., etc. Then a nursing home when I am a blithering idiot and then die. I have no one to inherit so if I have nothing left at the end...who cares. YMMV.

We're going full-timing any day now (house is sold, waiting to sign papers). Our exit plan..........Play till the end. Seriously, I really don't care if we move into a stick built home ever again. I've owned homes since I was 20 yrs old and I'm tired of the constant need for "something"...... :) :) Buy an RV that you can live comfortably in and go for it. If we get sick, etc, living in a stick built house isn't going to make it any better for us.

Haven't started longterm RVing yet but do have an exit strategy. 12 years ago I bought a "where we'll get older in NYC" property. Interim, it's been rented out. Am currently in the process of selling our primary NYC residence which will allow us to purchase outright our RV and towing vehicle, as well as allow a tax write off plus investment/shelter of the capital gain. Right now in the process of researching extra health insurance that will cover any possibility I can think of. I've some funds in savings but don't choose to use it for either RV purchase as it will not give me any tax deductions/credits.

By all means have a plan. Full timed for five years then bought another house in 09. I made enough from the sale of my house in California in 05 to pay cash for my RV, buy another house when we were ready and retire at 52. Would not have been possible otherwise. Only you'll know if it's doable. I don't think you'll see home values as high (ridiculously over valued) as they were in 05 again if your selling a home. Perhaps a home base park will work as well for you. Look into the Escapees club and care center.

rockhillmanor wrote:
Right off the bat my plan was pay cash for the MH, IMHO that takes all the worry of what if off your plate making an exit plan much easier financially.

The height of the real estate market crash while I was in Florida is what changed my time frame for my exit plan.

I just could not pass up looking at and ultimately buying a fantastic, unbelievably nice house in foreclosure. Paid cash so no payments there either.

Heck I was spending more than half a year down here anyway and paying a substantial amount of my retirement money on CG fees. Certainly no investment there! So now I have 2 acre parking site for my MH, no CG fees and a nice house for me. AND I don't have to worry about MH payments so I am keeping the MH so I can still hit the road whenever I please. :C

This is the kind of story I wish more people could tell ... especially the "paid cash".

Dutch_12078 wrote:

Bumpyroad wrote:

WyoTraveler wrote:
I had an exit plan and used it. I think everyyone should at least think about an exit plan. As we get older things just don't always go as planned. I've met RVers on the road with some sad stories. Mostly medical problems that really stopped their FTing. A fall back plan is not a bad idea.

yep, if you sell the house and 4 years later need to move back into one, your "investment" in the RV has decreased in value by 50% and the house has gone up 20%.
bumpy

A good exit plan involves investing all or most of the money from the house sale so it's still available when the time comes that you need it. In many cases, fulltimers coming off the road want a smaller home or other living arrangement where maintenance is less of an issue and the costs are lower than the previous S&B.

I agree with this idea but when I do a little bit of number crunching I come up with a pretty big number required before hitting the road.

A portion of house sale goes to be invested. Say 350,000

Cost of Truck and RV say 150,000

Investments to allow for a 60k per year lifestyle 1,500,000 if you follow the 4% rule.

In order for a couple to be able to afford hitting the road prepared for inflation and the ability to buy a condo when they return they would need a minimum net worth of awfull close to 2 million.

Although the numbers are what they are I am guessing many people are cheating somewhere and somehow getting away with it....or are they?

Right off the bat my plan was pay cash for the MH, IMHO that takes all the worry of what if off your plate making an exit plan much easier financially.

The height of the real estate market crash while I was in Florida is what changed my time frame for my exit plan.

I just could not pass up looking at and ultimately buying a fantastic, unbelievably nice house in foreclosure. Paid cash so no payments there either.

Heck I was spending more than half a year down here anyway and paying a substantial amount of my retirement money on CG fees. Certainly no investment there! So now I have 2 acre parking site for my MH, no CG fees and a nice house for me. AND I don't have to worry about MH payments so I am keeping the MH so I can still hit the road whenever I please. :C

A lot depends on how intent you are in a particular exit strategy. If you exit strategy is a McMansion in the hamptons, it will take a lot of money set aside. One of the things we love is the flexibility of the lifestyle. The RV is our fall back when the boat gets too much (or maybe we switch to a one level house boat). But if and when we give up the mobile lifestyle entirely, we will likely pick an inexpensive but nice area and pick up an apartment. $6-800/month should get us a comfortable 1 bedroom apartment with far more space that we currently live in.

In general terms, keep the RV to a modest percentage of you net worth. (Ie: if you are worth $10million, a $500k MH may be well within what you can afford to lose. If you are only worth $750k, a $500k MH is a crazy purchase.)

Bumpyroad wrote:

WyoTraveler wrote:
I had an exit plan and used it. I think everyyone should at least think about an exit plan. As we get older things just don't always go as planned. I've met RVers on the road with some sad stories. Mostly medical problems that really stopped their FTing. A fall back plan is not a bad idea.

yep, if you sell the house and 4 years later need to move back into one, your "investment" in the RV has decreased in value by 50% and the house has gone up 20%.
bumpy

A good exit plan involves investing all or most of the money from the house sale so it's still available when the time comes that you need it. In many cases, fulltimers coming off the road want a smaller home or other living arrangement where maintenance is less of an issue and the costs are lower than the previous S&B.

WyoTraveler wrote:
I had an exit plan and used it. I think everyyone should at least think about an exit plan. As we get older things just don't always go as planned. I've met RVers on the road with some sad stories. Mostly medical problems that really stopped their FTing. A fall back plan is not a bad idea.

yep, if you sell the house and 4 years later need to move back into one, your "investment" in the RV has decreased in value by 50% and the house has gone up 20%.
bumpy