Exit Stratagy

[4x4ord]

As we anticipate spending a segment of our retirement traveling around in some sort of an RV, I am beginning to wonder how many people have planned an exit strategy and if so how, has it been working out?

[2gypsies1]

One thing to think about with buying property when you first begin full-timing is: do you really want to live there in later years? Some do, and that's fine, but after traveling to so many wonderful places, you just might find somewhere else that you would prefer to be in later years. We surely did. 🙂

[paulcardoza]

We began working on our long term plan for fulltimng, several years ago. I'm 57 and expecting to retire at 65. DW is already retired at 56. We currently spend 7 months (April-Nov) in our rig, camping seasonally. The CG is much closer to my office.

We sold our home and have bought a downtown condo. Thinking is that if/when we decide to end our fulltime adventures, it'll be because we can no longer drive or get around. A downtown condo will be the perfect place for us to settle in, as everything will be close by.

We live in the condo during the winter, so right now, it sits unused for 7 months. Once I retire, we will decide if we want to rent it out for the additional income, but I'm very hesitant about doing that. I don't want to come home to a disaster!

[rockhillmanor]

When I hit the road full time like everyone I was struck with the same wunderlust as many. Free of a job, free of owning a home and all that goes with that, free to do whatever I please.....I will RV forever!

As I traveled I met up with many full timers that were pulling off the road either on their way back because they were homesick, some where looking to buy another house, some just plum tired of traveling and living in a MH. Some where on the road for 6 or 7 years some just only a 1 or 2 years. I thought, no way, not me, not ever...I will RV forever!

Well I have come to the conclusions that in fact that full timing forever IS not for everyone. And no one knows how much they will like it or just how long they will stay on the road. THAT is why an exit strategy needs to be in place before you even sell the house.

Only you know when the time comes when it is no longer fun and the timing of that revelation is different for each of us! :C

[was_butnotnow]

We started to fulltime in 2003 sold everything. Got a truck and 5er all free of debt. Travel all over the west and northwest. Wintered for years in Quartzsite, AZ still do spend much time there boondocking. Have all the toolds to do so. A couple years ago began looking for winter place in AZ. Found it over near Benson high up on dead end road. 4 acres fenced with all metal shop and garage. Large three section manufactured house. All at a steal. Still no debt. We spend 8 mounths on the road and the rest there. Do doctor stuff there during our down time as if something goes wrong got a base to work out of. Just lock the fence turn everthing off and go. Neighbor watches over it. That's our pre and post exit plan.

[2gypsies1]

We've owned 2 RVs - a 33' 5th wheel for 8 years and our 40' motorhome for 10 years now. Both have pros and cons. We loved the 5th wheel and it had plenty of room for us - but we hated driving that big noisy diesel truck around.

Friends got us interested in Jeeping and so we got the motorhome and Jeep and have had a ball with both.

Overall, I'd say we've enjoyed the motorhome more. However, we are travelers. We also volunteer for national and state parks but only accept gigs for two months at a time. We get antsy. I guess if we didn't move so much a 5th wheel would be o.k. Most of all, we got rid of the big truck.

[sk734]

2gypsies wrote:
We took off 18 years ago after early retirement, not even knowing what full-timing was all about except for talking to some on our first winter trip. We sold the 2500 sq ft house and everything in it, paid cash for our RV, had no other debt and took off for the unknown - no internet or cell phones at that time. Invested our house sale money. Absolutely no exit plan.

Sixteen years later we devised our exit plan (thought about it for a few weeks) and bought a 1100 sq ft. small townhome in a completely different far away state in which we loved to winter. Everything worked out just fine without an exit plan for Day 1.

I think the only plan you need is to be out of debt.

Not to hijack this thread, but I am curious how many types of RV's did you own during this 18 year period and what did you like the best? You can PM me if you like.
Thanks
Steve

[Mootpoint]

ventrman wrote:
My Exit Plan is when I stop Fulltiming is to Park the RV somewhere and not move it.

Some sort of exit plan is a must. The longer we fulltime the simpler it gets. The DW stated she did not want to pass on living in a 5th wheel. She started off thinking a condo would be nice. I wasn't fond of that idea so I promised to buy a park model for her when the time comes. She seems happy with that.:B

[2gypsies1]

4x4ord wrote:

2gypsies wrote:
Invested our house sale money.

That was your exit plan.

Yes, I guess it was but at the time the thought hadn't occurred to us what the purpose of that money was going to be used for in the future. Our thought was only that we were going to travel in our RV.

Many folks think they can't sell their house - just in case, or they have to buy some land right away - just in case, or have to keep their "stuff" just in case. We didn't think about any of that. Everyone is different, for sure.

[NYCgrrl]

Liquidity is my current problem. I keep the proverbial 6 months on hand but that's about it. On the other hand through the years I plowed much of what could have been savings into investments that have maintained a high return % wise. I'm not really gonna worry if I live to 100 and never work another day even though I doubt that will happen. I enjoy working on my own terms.

I would worry if my quality of life was not what I want it to be. The idea of being in poor health and living in an RV doesn't appeal to me. At that possible point from what I've seen of my elders I'd want to be in a stable locale near the best health infrastructure my funds can buy. Seen elders struggling through the vicissitudes of Medicare; isn't pretty for my sight.

[Flanz]

4x4ord wrote:

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?

Spot on!!!! That's where we are. At this point we have the same budget mentioned. Currently figure 2mil in investments, 600k to start, house pays for RV which is ~$250K, house net ='s ~$320K. We retire @ 56 - $600K pays for retirement for say 9 - 10yrs or so, then the 2mil and SS and pensions kick in. IF we come off the road early, then remainder of house proceeds pay for new S&B and remaining dollars from $600K helps also.....BOY, it's fun to plan and dream of fulltiming. We figure we got 2 more years before the plan gets put in place.

Anyone else got something similar?????

[4x4ord]

2gypsies wrote:
Invested our house sale money.

That was your exit plan.

[Dog_Folks]

ventrman wrote:
My Exit Plan is when I stop Fulltiming is to Park the RV somewhere and not move it.

Ours too. If the RV dies first, we will move into a small apartment.

[ventrman]

My Exit Plan is when I stop Fulltiming is to Park the RV somewhere and not move it.

[2gypsies1]

We took off 18 years ago after early retirement, not even knowing what full-timing was all about except for talking to some on our first winter trip. We sold the 2500 sq ft house and everything in it, paid cash for our RV, had no other debt and took off for the unknown - no internet or cell phones at that time. Invested our house sale money. Absolutely no exit plan.

Sixteen years later we devised our exit plan (thought about it for a few weeks) and bought a 1100 sq ft. small townhome in a completely different far away state in which we loved to winter. Everything worked out just fine without an exit plan for Day 1.

I think the only plan you need is to be out of debt.

[Clay_L]

We put all of the money from the sale of house away and paid cash from savings for the motor home. We were lucky enough to sell the house in early 2003 near the peak of housing value in the area.
After 12 years on the road we executed our exit plan and bought a house in western CO.

We have close friends that did not have the financial resources to formulate an exit strategy but wanted to full time so much that they said to heck with it and went ahead. After 13 years on the road health issues forced them to stop.
They declared bankruptcy and let the motor home be repossessed - they owed much more on it than it was worth.
They now live in two rooms of an apartment they share with their daughter and her husband. They pay half the rent.

They really miss full timing and are not happy with the current arrangement after the years of freedom but they have some happy years to look back on.