Why Half-Timing is better for us

[TJFogelberg]

Enjoy reading the many posts (and blogs) on fulltiming and see it's appeal. Am interested enough to have "crunched the numbers". It just doesn't make sense for us.

S+B (Low maintenance townhome) is $754 month all inclusive ($9,048)OUT
We don't pay for camping or gas for the 6 months RV is in store(3,000)SAVE
Our RV will last longer since we only use it 6 months/year. Depr( 1,800)SAVE
We don't need to pay for storage (we wouldn't dump all stuff) ( 1,200)SAVE

Net Additional Cost to Keep S+ B 3,048 NET

Explanations on above items:
S + B Inc RE Tax, HOA fees, Insurance, Utilities, Culligan, Simplisafe, $100 month for maint.
S + B I assume a wash between return (appreciation) on S +B and safe
investment rate on a muni bond fund. (Both tax free with regard to
appreciation on S + B or a muni fund. Both about 2-3% annually.)
If we camped for the 6 months we would incur conservatively $500 month in
CG fees and additional gas. (We're not BLM land types who want to sit in the boondocks with solar panels)
An RV depreciates faster when used 24/7/365. Very little "wear and tear" when it is sitting inside stored. The 1800 is a rough guess at "reduced depreciation".
The Storage 1200 is the additional cost to store our "stuff". (If we were to go
FT, we would need at least some storage space as we have a lot of stuff and we're not going to dump it all and then have to replace when we go back to S+B.) We currently pay $900 year to store the RV (a 12 month inside spot).
It would cost $2100 year for 2 10x20 units to store our stuff.

Anytime we need to, we can simply point the RV toward "home" and be there within 3 days since we are located in the Midwest.

No hassles getting rid of everything.

No hassles buying a new S+B at inflated prices 10 years from now.

Existing S + B is remodeled, we've spent years upgrading and replacing so that we wouldn't have work to do in retirement.

We haven't mowed grass in decades (HoA). Yes we have had lots of
maintenance and upgrades, but that is behind us and no different than
upgrading an RV.

The only thing we would really change is being in Minnesota during the harsh winter months of Dec-Mar and that is where the half-timing comes in. Plan is to roam south when we retire in a few years.

For now, we work during the winter months and roam during the spring/summer months.

We enjoy all the fulltimer blogs and posts. Very enticing. It just doesn't work for us.

It's very different if your getting out from under a huge house with acres to mow, painting exterior, tree maintenance, snow removal, etc. We've never had any of that since we live in a modest townhome.

My only point is that the fulltimer mantra of low costs and simplicity doesn't necessarily work for everyone.

Please no hate mail. Maybe this post will help those looking at fulltiming but not sure.

[computerguy]

It works for you and really that's all that matters. No need to explain yourself any further.
I don't concur on your methodology and explanations but that's ok too. What matters is that it works for you.
Enjoy the RV and all that goes along with it.

[38Chevy454]

Plenty of snowbirds that get out of the cold in winter, and then return to their northern home for other parts of the year. Whatever works for you.

[cwk]

Originally Posted by TJFogelberg

Please no hate mail. Maybe this post will help those looking at fulltiming but not sure.

Thanks very much for taking the time to post this. Everyone's situation is different, of course. We are considering full-timing in a few years. However, we had not thought about some of the issues that you raised. Very helpful post! Thank you!

[TexasTom]

Great points and thoughtful perspectives.

Thanks

[Barbaraok]

If it works for you, then that is what is right. After almost 10 years of fulltiming we purchased a park model in a park we like in Mesa, AZ so we could spread out a little during the winter. It works for us as we know the day is coming when we will not want to go for 6 months in the MH. We're not there yet and this will draw out the length of time that we enjoy being on the road by giving us the 'down' time to recharge our batteries, etc. Everyone has to do what is right for them.

[Arkie_ENT]

Excellent thoughts and presentation. I read carefully and forwarded to my wife for her review also!

[Dan McMartin]

Originally Posted by computerguy

It works for you and really that's all that matters. No need to explain yourself any further.
I don't concur on your methodology and explanations but that's ok too. What matters is that it works for you.
Enjoy the RV and all that goes along with it.

Agree. If it works, do it.

Personally, I don't think it's simply an math problem but again, if it works for you. Not getting rid of everything is a bonus. I mean, we're glad we did it and we don't miss much but it was a pain.

I wonder how many full timers would be part time if things worked out a little differently? Probably quite a few.

[dexters]

Originally Posted by TJFogelberg

Explanations on above items:
S + B Inc RE Tax, HOA fees, Insurance, Utilities, Culligan, Simplisafe, $100 month for maint.
S + B I assume a wash between return (appreciation) on S +B and safe
investment rate on a muni bond fund. (Both tax free with regard to
appreciation on S + B or a muni fund. Both about 2-3% annually.)


My only point is that the fulltimer mantra of low costs and simplicity doesn't necessarily work for everyone.

Please no hate mail. Maybe this post will help those looking at fulltiming but not sure.

Full Timing isn't for everyone. If, 6/6 works for you; great!

There are few costs you may be missing.
- Real Estate taxes?

- Opportunity costs - the lost investment income/growth on the cash you have in your house. If you have 50,000 in your home, that would be 2,500 at 5%.



RV depreciation is usually associated with the year not the mileage. The mileage is a negative when it is above average mileage. So, that should not be 'saved'.

"Net Additional Cost to Keep S+ B 3,048 NET"
1,800 RV depreciation
2,500 Opportunity Cost
500 Real Estate Taxes?

7,848 additional cost to keep s&b

[TJFogelberg]

Reviewed my original analysis with a hidden desire to have FTing come out better financially.
Clearly one can boondock in the desert and make FTing come out less expensive. At $15 night average for campground costs is very conservative. For us to enjoy FTing, $25 would be better. We don't want to be tied to Thousand Trails parks exclusively as some do. Dexter's post isn't accurate...the opportunity cost of $ tied up in S+B is a push if one assumes a 2-3% return on home (appreciation).(The alternative would be a tax free Muni bond fund yielding 2.75%). I accounted for real estate taxes. An RV stored inside (6 months of non use) is going to last 5 years longer than one continuously in use and exposed to the elements 24/7.
We're not willing to dump $50,000 of personal property at a garage sale for pennies on the $..so FTing adds storage costs. My original analysis holds.

[Mr_D]

Friends had a family homested in OR, they also bought a place in Yuma. He worked at a large memorial type garden in the summer and at a motel in Yuma in the winter. They decided after a few years of that to come back to the homestead and sell the place in Yuma. Just didn't want to work any longer. Income is less but they're enjoying it more!

[Barbaraok]

TJ, obviously fulltiming wouldn't work for you because you place a lot of value on stuff than we ever thought of doing. And do you really think that your house costs nothing to maintain? Like new roof when tornado passes by (been there, done that); new boiler for the hot water system on a Friday night in January in Michigan (), new hot water heaters (they only last so long), replacements for all appliances some point along the way. Plus, we lost money on 2 out of 5 homes we sold because of market conditions so 'appreciation' is guaranteed.

Luckily, everyone can do there own thing.

[Dan McMartin]

Originally Posted by TJFogelberg

Reviewed my original analysis with a hidden desire to have FTing come out better financially.
Clearly one can boondock in the desert and make FTing come out less expensive. At $15 night average for campground costs is very conservative. For us to enjoy FTing, $25 would be better. We don't want to be tied to Thousand Trails parks exclusively as some do. Dexter's post isn't accurate...the opportunity cost of $ tied up in S+B is a push if one assumes a 2-3% return on home (appreciation).(The alternative would be a tax free Muni bond fund yielding 2.75%). I accounted for real estate taxes. An RV stored inside (6 months of non use) is going to last 5 years longer than one continuously in use and exposed to the elements 24/7.
We're not willing to dump $50,000 of personal property at a garage sale for pennies on the $..so FTing adds storage costs. My original analysis holds.

Again, if it works for you, do it. As I just said in another thread, full timing isn't the big leagues or something. You don't get a prize for making it there. It's a spartan lifestyle by anyone's standards but some of us yearn for that. Some don't. If certain things didn't happen in our lives that steered us towards downsizing and simplifying, we might still be living in our old 2400 sf, three car garage house on five acres.

But things took a turn...or several turns...and we decided to make a change. It's neither good nor bad. It just is. I don't mean to sound like a jerk but who are you trying to convince with all that math? Life isn't a math problem. If you want to part time, do it. This isn't a contest and you have nothing to prove. As long as you're living life on your terms, you win.

[TJFogelberg]

This is a forum for exchanging ideas and bouncing issues off of fellow campers. We're not expected to all be cut from the same cloth. I'm an accountant...I like looking at the financial implications of such a major life decision. If the numbers were more compelling (in our case), I'd be more likely to succeed in convincing my other half to "go for it".

There may come a time as we get older that we choose to sell our S+B in Minnesota....fulltiming between that move and relocation would be a perfect move under those circumstances.

Appreciate everyone's comments and the exchange of ideas.