Since the talk here has turned briefly to winning the lottery, I got to thinking about. . .
The new definition of "a lot" of something (money, love, acheivement, etc.) seems to be couched in the phrase "life-changing." You know, if you win the lottery it is (or isn't) a life-changing event.
So, since cruisers gotta cruise, and since most of us feel we don't do enough of it, what would be the life-changing event that would let you haul your buns upon the seas as often as you like? Or, simply to free you of your cares?
If it's money, feel free to round off the amount in any way you please.
Just enough money from interest to take a cruise each month and not have to ask the price. A seven day cruise in an ocean view room without air fare would do it for me. And the principal remains the same.
I agree with Thomas, a cruise a month cruise only, without having to ask the price! Make it a suite!!
Additionally, I would like to just once charter out one of the Voyager class ships for all of my friends and family to enjoy for a week. All expenses paid by me!! ( I would probably have to be the biggest lottery winner of all time, which I wouldn't mind at all!!!!!)
I'm thinking twelve times a year would actually be too much. It wouldn't take very long before it would become routine and boring.
Twice a year works for me and all it takes is three graduations and three weddings.
That's the life changing event (events).
Compared to costs to maintain kids in college and grad school and to pay for three weddings, cruising is cheap.
Besides you don't really need the big nest egg, all you have to do is convince your spouse to keep working. I hope Gram is not reading this thread.
I'd like to win just enough to enable me to take all my family and a few friends on one really nice cruise, to share with them all the joy we've found in cruising. Then enough interest left over for the 2 of us to cruise maybe twice a year (you've got to live in reality, but it's nice to have something to look forward to!)
--$500,000 is what you'd need to generate $24,000 a year (actually $25,000) at 5% without touching the principle. That's pretty straightforward.
--If you're asking what investment will kick out 5%, the answer is that most good ones will over time. It's no particular challenge for a long-term investor to do 5-8% or even more over time, and yes, I'm including the last three years. Many equity investments are up well over 20% so far this calendar year, making significant progress on the road back from the last three years. My perspective is from an investing career that's now approaching 40 years, and I can assure you that a 5% annualized return is a relatively modest goal, completely doable. Off the top of my head I can name you a half dozen mutual funds that have done better than a 10% average over the last 10 years, which of course includes the last three very difficult ones.
A long term perspective is appropriate for the current discussion, because we're talking (hypothetically, of course) about endowing a nestegg for the purpose of perpetual cruising.
I'm not trying to sound like one of those blowhards we all sometimes meet on ships, but seriously, if your investment advisor feels that 5% a year over time is an iffy proposition, I'd look for a new advisor.
who is not and never has been an investment advisor
I agree AR, the DJIA is a healthy 11% per year over the last 30 years or so. Even a conservative mutual fund heavily invested in mortgages, CD's, and cash will return 6% during these difficult times (I love owning some of these) which is why I used the 6% number in the previous post. When all my other cash is going down the tubes, what's invested in the "safe" (if there is such a thing) is still hanging around for Mrs. Thomas to spend.