What Do We Do in the Abacos?
I got a question from a reader about what we do to pass the time while living six months every year in the Abacos. Our life may seem a bit boring to some, but we like it. Rather than write about what we do to pass the time, I thought I would post some pictures of our most common activities. As they say a picture is worth a thousand words.
Remember to click on all pictures to enlarge.
Approach to Hopetown Harbour
Where we live & play – Hopetown Harbour, Elbow Cay
Hopetown Marina – Where we keep Odyssey on very windy days; which is very often in the Abacos
Anchoring out by ourselves on “Odyssey” to enjoy the natural environment
Partying with old Friends
Making new friends at parties
Taking leisurely sails to other Abaco islands
Exploring Remote islands
Watching endless sunsets
Working on the Boat
Discovering unusual underwater life
Lots of Snorkeling and Scuba Diving
Retirement Planning Helpful Hint
This hint is really more of a financial planning tip, but it impacts your retirement planning.
Do not save any funds for your children’s college education until you are fully funding your own annual retirement plan requirements. This tip would seem to go against many people’s values but it is absolutely the right thing to do. You will find this same guidance in every financial planning book you read.
Why is it important to fully fund your own annual retirement plan needs before putting aside any funds for your children’s college education? The reason comes down to the available funding options for each financial goal. There are many options available to fund your children’s college education. There are grants and school provided assistance to help pay for college. Your child can obtain government or private loans to pay for college. Your child can get a job and pay for college himself. Your child can get funding help from an employer many of which provide college tuition assistance as an employee benefit.
However, your only option for accumulating retirement funds is for you to save and invest your own funds out of your earned income. The Social Security Program will be there in the future, but the benefits available for the average person will very likely be much lower than the program provides for current beneficiaries. You do not want to rely on social security benefits as your primary source of income in retirement. Social security benefits should be viewed only as money for extra luxury spending in retirement (i.e., not necessary for funding any retirement needs).
So once you have drawn up a retirement plan that dictates how much money you need to save annually, you should not put aside any money for your child’s college costs until you are regularly meeting your annual retirement funding goals as set forth in your retirement plan.
This approach does not necessarily mean that you will not contribute anything to your child’s college education costs. It just means it should not take priority over your own retirement funding needs. Several things could happen years after the birth of your child. Some examples are:
- A parent may leave you some money that you could put toward college expenses,
- You may obtain a big pay raise in the future that allows saving for both financial goals,
- In the future you may have a mortgage-free home that you could get a loan against to help your children pay off their school loans (but only if it does not impact your retirement goals).
Finally, something to remind your college age children when they start complaining about their college costs and why you are not helping them. Just tell them you are glad to help pay some of their college costs today on one condition; when you (the parents) are too old to work, they (the children) agree to take you into their homes and take care of you for the rest of your life. Your children will quickly see the big picture and stop complaining.
-Merry Christmas and Happy New Year to all.
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