Planning for Full-Time RVing

brw549

Member
My wife and I are just under two years from retirement. Our plans are to sell our home and most belongings and travel in a fifth wheel. We have just returned from touring several manufacturers in and around Elkhart In. and have narrowed our selection down to three. We currently have a 2014 BC 3650 RL and this is our third RV so we are not new to the lifestyle. My question and or concerns are with regards to cost, budgets and other experiences some of you could share with us on what to be prepared for. I will say the RV will be financed because it would be our main tax deduction. We also plan to have a business as we travel conducting wildlife and nature photography programs. This will allow us to deduct some of the travel expenses associated with the business. Our income will be from my retirement as a paramedic for 40 years and my wife being a RN for the same amount of time. Our gross 401k and retirement should provide approx 65,000 per year. At 62 (2 years from now) we plan to apply for SS this will increase our gross to approx 98,000.00 per year. This may sound like a lot of money but, taxes and healthcare insurance and other cost have not been deducted. I estimate the RV payment will be around 650.00 month my truck 2016 Dodge Ram 3500 diesel should be paid for. Based on this information and comparison to your budgets and income. Should we do this. Are we making a big mistake? Any assistance, guidance, recommendations are appreciated. My email is brw549@bellsouth.net if you wish to contact me through that method.

Billy and Cathy
 

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'Lil Guy'

Well-known member
I think your RV payment might be high. Your biggest expense is gong to be your health insurance until you reach 65 and can get on Medicare with a supplement. A lot of people have done it with less and I'm sure people will chime in.
Good luck on your endeavor and enjoy. If this is the lifestyle you want, then by all means pursue it. Push comes to shove, you can always dock up north in the summer and move it south in the winter. It's the traveling time that is the most expensive with the fuel and 1 night stays.
 

MTPockets

Well-known member
June & I were full time about five years. Your income is fine, but too, depends on how much extra you spend on site seeing tours, eating out, high priced RV parks, etc. We preferred State Parks, travelled a max of 200 miles per day, and always stayed a minimum of two nights. Many times much more. We travelled from FL to Alaska, Washington, AZ, MI etc.... We wintered in FL a couple winters, then Arizona. Our policy was to never winter more than once again in same place, therefore seeing new places each year. Getting prepared we sold the house and put some things into storage. Due to a fall, my wife could no longer RV, so we had to rent an apartment in AZ for a year until she could travel to Indiana where we are now settled in a house. As far as costs, I suggest you set aside money specifically for the inevitable RV & Truck costs: tires, awnings, and regular maintenance costs, as well as the surprises such as a new appliance if it fails abruptly, or major truck repair. Our end plan was to travel until we decided to stop, and decide where to stop. In our case, it happened a few years before we preferred, but we made do, although it was a bit traumatic for a while. Hindsight being 20/20, we should have kept more of our stuff in storage instead of selling it and then having to replace it. Also, we “sometimes” think we would have been better off to have kept the house and rented while we travelled... not real sure about that, but we’ll never know for sure. No regrets, but a thought. It sounds like you’ll be fine. Enjoy!
 

Garypowell

Well-known member
Get with a CPA as you set up your business. If you have someone you can trust that actually owns the business you can take Per Diem. We bring about half of our income tax free this way.

Also you can set up a program where the company reimburses you for medical expanses (I.e. insurance, drugs, etc.)....again no taxes.

A lot will depend on actually how much you work. We work full time so Per Diem is easier. If you only take pictures one day a week....might be dicey as to how much you can deduct via per Diem....but the same would be true with actual expenses.....and one way or the other you eventually have to turn a profit.

Also remember no battle plan survives contact with the enemy.....so stay open minded. Try it one way the first year then approach the second year a different way. We have traveled this way with our business for 20+ years and have enjoyed every aspect.
 

danemayer

Well-known member
I like to plan on spreadsheets. So I've attached a spreadsheet you can customize. If you don't have Excel, you can print the PDF or the JPG.

You might have to add some expense categories, or put in a general miscellaneous cash fund.

On the annual funding for RV and Truck repairs, if you don't spend it every year, you'll eventually spend it. You might go 3 years on the truck and then need $1200 tires, and a $4500 transmission. Same on the RV. Maybe no spending one year, and a bunch the next.

On site expenses, I would assume 10% inflation in rates every year.
 

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brw549

Member
MT Pockets and Lil Guy, Thank You so much for you input. I guess we have lived such a structured life that making this type of change is a little unsettling but, I know we can do it. As I told my wife (who wants a big new fifth wheel) I don't care what we travel in but I want to be able to afford to live and see this country. I want to see all of the national parks and for one time in our life no alarms or schedules. We will keep our professional licenses as a Paramedic and RN current. Who knows we snag a job at a national or state park for the summer or something if we want to. I wish there were some seminars or classes on this we could attend.

- - - Updated - - -

Danemayer and Gary, great info and the spreadsheet is awesome. Thanks
 

Razorbackfan

USN Chief
I would look at at 2-3 year old units. They have all the bugs worked out and the major depreciation has already happened. I got this Landmark from the original owner. He paid 92k for it in Jan 2013 and I got it in May 2017 for $26k. With a 6 year note my payment is pretty cheap and I’ll own it pretty quick.
That way if you don’t like the rig you bought you can sell it without much loss (I had an offer on this one for $40k) and get something different.
I love the new units but man I can’t imagine having that kind of depreciation even if your writing it off. I think it’s awesome your getting out there but definitely like mentioned above, be taking the advice of a financial planner and CPA. We are just a sounding board of ideas.
 

'Lil Guy'

Well-known member
Just looking at your signature, it appears you are not members of the HOC. You need to join and attend some rallies. We have people who full time and travel the circuit. Great time to sit down and visit with these people at the rallies and they love to share their stories. Jay and Stella gave us some good options. We did a 3 1/2 month trip up north all the way to Maine. Nice to break up the trip and stop in at rallies and visit with old friends and make new ones. We now try to schedule our long trips to coincide with some of the rallies along the way. Some of our members like to travel in small groups. Regardless, by joining the HOC and attending some rallies now, you can start to gather the knowledge you'll need for your transition. Again, wish you guys the best on your journey and hope to meet you down the road.
 

Gary521

Well-known member
I would talk to a financial advisor before you talk to anybody else. Most advisors will tell you to not take SS at 62 if you can make due. While mortgage is a write off, it may not offset interest payments. You are deducting the full amount of the interest payment but it is only returning cash ( offsetting income ) at your tax rate. What may offset interest, is investments that earn more that the loan interest rate.
 

MTPockets

Well-known member
I would talk to a financial advisor before you talk to anybody else. Most advisors will tell you to not take SS at 62 if you can make due. While mortgage is a write off, it may not offset interest payments. You are deducting the full amount of the interest payment but it is only returning cash ( offsetting income ) at your tax rate. What may offset interest, is investments that earn more that the loan interest rate.

Just a personal comment. If I had taken my financial advisors advice I would have worked eight more years... would have a “lot” more money and things, but a lot less travel and personal pleasure and peace. Retired at 57 and I would do it again for sure. Just sayin’
 

wdk450

Well-known member
I wish you a terrific retirement with all going as you planned. As any of us who have lived full lifetimes know, sometimes life doesn't go as you planned, especially with your health. As both healthcare professionals you have seen this. Do all you can to make your bodies strong, healthy, and have strong immune systems. But have in your minds a contingency plan in case of major injury or major illness. Good Sam and Skymed have insurance plans to fly you "home", fly your mate with you, get your rig driven home, take care of pets, etc.
 

brw549

Member
Thanks WDK450. When my wife and I were in Elkhart In. a few ago we met the President of the Family Motor Coach Association FMCA. He informed us that their association had taken a vote to change their by-laws to allow all campers in their organization. He was telling me about some of their benefits also. This may be something all of should look into.
 

porthole

Retired
Is your paramedic job and pension private or local/state government?

SS has a GPO, government pension offset. Formula used to reduce your benefits if you have a government pension.

In my case the GPO will reduce my SS benefit to about $125 a month.
 

Aandaar

Well-known member
Is your paramedic job and pension private or local/state government?

SS has a GPO, government pension offset. Formula used to reduce your benefits if you have a government pension.

In my case the GPO will reduce my SS benefit to about $125 a month.

Can you explain this a little more. Have not heard anything about this?


Sent from my iPhone using Tapatalk
 

porthole

Retired
So have I, have over 150 quarters.
But I also have a qualifying local government pension, so I fall into the GPO category
 

Gary521

Well-known member
The government Pension offset only affects you if you are receiving SS as a result of your spouse.
 
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