If you have enjoyed taking cruises and are at or approaching retirement age, chances are you’ve seriously considered the possibility of living on a cruise ship instead of moving to a retirement community.
That is exactly what New York attorney and author Peter Antonucci and his wife did in 2014, purchasing a $1.6 million apartment on The World, a residential cruise ship, and spending six years traveling the world in the company of some of the wealthiest people on the planet. He has written several bestsellers inspired by his years at sea. His most recent novel is Tides of Betrayal.
I asked Antonucci to share some advice for anyone curious about buying into a residential ship. He listed a number of important factors to consider:
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. How old is the ship?
Many 20- to 30-year-old cargo vessels are being reconfigured as residential ships. With boats and airplanes, the thing you always ask about is engine hours, similar to miles on a car. Safety and a ship’s age are inextricably related, no matter how good the maintenance is.
2. Conduct in-depth due diligence.
The average person who is not using attorneys or accountants is often unable to perform adequate due diligence on a ship and be comfortable. “If I am going to spend $400,000 for an apartment on a ship,” Antonucci says, “I want to know if it is a viable investment. You wouldn’t buy a house without an inspector!”
Also, the financials often do not include such things as fuel costs and port fees — which can exceed $40,000 a night. “So, if they don’t have or fail to disclose operational expenses, including port charges, how much of any one destination will you be able to actually visit and get to know?” he asks.
It is important to understand that, unlike residential ships, virtually all cruise ships must spend as much time as possible at sea. There are rules about not opening the shops when docked, the sale of alcohol, gambling — they have to be at sea. That is where they make their money. “This explains why the typical cruise yields little cultural enrichment, because so few hours are spent at any one port, as contrasted with several days for a residential ship,” Antonucci notes.
3. The boredom factor.
If your ship makes a repeat circuit — the Caribbean, Greek Islands, Western European countries — how many times do you want to repeatedly visit the same places?
4. Available medical services.
The ship must have a doctor who is either a GP or certified in emergency medicine.
5. What level of quality can you afford? A Holiday Inn or a Ritz-Carlton?
“You are not going to get Ritz-Carlton service and attention to detail at Holiday Inn prices,” Antonucci points out, “so that is a huge consideration when you’re looking to purchase an apartment on a ship.”
Antonucci also shares a major plus and a major minus of living on a cruise ship.
Plus: The more you travel, the more enlightened you become.
Becoming immersed in other cultures is life-enriching and leads to more intelligent, respectful conversations about other religions, lifestyles, expanding one’s horizons, discovering that people basically aren’t all that different.
Minus: You are not going to be there when and if:
- Something serious happens to a family member.
- There are weddings and graduations, unless you plan ahead and have the means to fly back and forth.
- You are going to miss your friends. Yes, there is Skype and Zoom, but unless these are offered free or at a greatly reduced cost, internet charges are prohibitive and often slow.
Who is not well-suited to reside on a ship?
A residential ship is a small community floating around in a steel can! “It gets to be gossipy, petty, like the cliques in high school,” Antonucci says. “To some extent, it is like being in a fraternity or sorority where you need to get along with most people.”
A residential ship might be compared to a condo — but a ship is small, and when you walk out of your apartment, you are limited by where you can go. There is no hopping in the car and taking a road trip or going to Costco.
Also, Antonucci underscores, “Someone who is unadaptable is not well-suited to life on a ship, as a lot happens beyond their control, such as the weather. Certain ports at the last minute are difficult or impossible to enter. If you can’t deal with change, you’ll have a problem.”
A person with a chronic health issue can wind up in deep trouble if they need more medical help than is available on the ship.
Who is well-suited for life on a ship?
A person in good health, with a great sense of adventure, is ideal, Antonucci says: “Someone curious about the world who can let things roll when they are in a less than ideal situation in terms of weather and people.”
Antonucci concluded our interview with this caveat: “Living on a ship can take a real toll on your terrestrial friendships and relationships.”
Tides of Betrayal makes you a fly on the wall of the people living on a fictional residential ship. You get to know them. I’ll bet that no jurors ever fell asleep at any trial in which it was “Peter Antonucci for the defense.”
Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.
Related Content
- How to Find the Perfect Cruise for You
- Eight Don’ts to Keep in Mind as You and Your Loved Ones Age
- Why Can’t You Ever Use Your Timeshare?
- Considering a Timeshare? Don't You Ever!
-
Fed's Rate Cuts Could Have Impacts You Might Not AnticipateUnderstanding how lower interest rates could impact your wallet can help you determine the right financial moves to make.
-
Past Performance Is Not Indicative of Your Adviser's ExpertiseMany people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
Past Performance Is Not Indicative of Your Financial Adviser's Expertise
Many people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
I'm a Financial Planner: If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us? A Retirement Psychologist Makes the CaseA retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Adviser: This Is How You Can Adapt to Social Security UncertaintyRather than letting the unknowns make you anxious, focus on building a flexible income strategy that can adapt to possible future Social Security changes.
-
I'm a Financial Planner for Millionaires: Here's How to Give Your Kids Cash Gifts Without Triggering IRS PaperworkMost people can gift large sums without paying tax or filing a return, especially by structuring gifts across two tax years or splitting gifts with a spouse.
-
'Boomer Candy' Investments Might Seem Sweet, But They Can Have a Sour AftertasteProducts such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital.
-
Quick Question: Are You Planning for a 20-Year Retirement or a 30-Year Retirement?You probably should be planning for a much longer retirement than you are. To avoid running out of retirement savings, you really need to make a plan.
-
Don't Get Caught by the Medicare Tax Torpedo: A Retirement Expert's Tips to Steer ClearBetter beware, because if you go even $1 over an important income threshold, your Medicare premiums could rise exponentially due to IRMAA surcharges.
