I'm a boomer living on $4,996 monthly. My houseboat saves me money and keeps me young.
This as-told-to essay is based on a conversation with Cheryl Fellenz, 81, a retiree who lives on a houseboat off the coast of southern Maryland. She is one of thousands of older Americans who have shared their financial, career, and retirement stories with Business Insider. This interview has been edited for length and clarity.
The idea of living on a houseboat felt like serendipity. I retired at 51 from my teaching career as a reading specialist. I had never been a boater or a boat captain or anything, but one day in 2009, a couple of friends were in my living room talking about this funky Washington DC boat yard down M Street. My spirit was attracted to that. When I drove down by the water and saw those boats at the marinas, I was like "oh, yeah, I'm doing this."
Soon after, I sold my house, paid off the mortgage, bought my houseboat in cash, and then started my adventure. It was right after the market crash, so I sold my house — which I had been living in for 15 years — at a loss, but I was able to buy the houseboat for roughly $84,000. I knew the decision to move would cut my living expenses and I no longer have a mortgage.
Lucky for me, if you have a pension, you don't even have to think about a 401(k). I don't have any savings, but my Social Security and teacher's pension add up to $4,996 a month, which is comfortable for me to live on. I keep an accounting book and I write down all my expenses — the fee to dock my houseboat is $275 a month, then I need to afford groceries and utilities. Praise God, I'm in excellent health. If something happens, I put it on my credit card, then I pay it off. I am disciplined with that.
I'm paying toward my next financial goal: to be totally debt free. Boats can have more expenses than houses sometimes. After I got settled here, I had to pay several thousand dollars to fix the roof, air conditioner, and electricity. I paid for those repairs with my credit cards, and I'm hoping to have it down to zero by the end of this year. Once that's done, I'll have an extra $2,000 a month of spending money.
I live an alternative lifestyle. I don't have children and I'm not married. But I have my routine: I go to the gym, I fill up a few gallons of fresh water at a natural spring off Route 488, I cook on my hot plate or grill, and I run my errands. I also teach a few local children how to read. I don't charge the families anything, but it gives me a sense of purpose. Even though I'm at this later stage of my life, I still can say, "oh, I have something to do today."
I don't feel lonely. In my early years, I was the ultimate party girl. I loved to go to bars, listen to music, and go dancing. Now that I'm a little older, I wind it down a bit. I talk to friends, I go to social events held by my boating association, and I go once a week to a nearby jazz club. I would tell anyone planning to retire: be open to new experiences. Cultivate your imagination. Ask yourself: "Gee, where would I want to live? What's important to me?"
The houseboat has absolutely been an adventure for me. When I moved in all those years ago, the DC-area had a giant snowstorm. It was like a foot above my knees. I had to shovel the dock, about the length of a football field, but I felt so proud of myself. I felt so alive. I literally think living here keeps me young.
I'm happy with how my life is and the people in it. From my childhood, I've always loved nature. I see eagles, ospreys, gray and blue herons, and little turtles on the boat everyday. This is my dream come true.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
23 minutes ago
- USA Today
This is the average Social Security benefit for age 65
This is the average Social Security benefit for age 65 Show Caption Hide Caption Social Security uncertainty and policy changes are driving more people to file With a significant rise in Social Security applications, retirees face financial decisions influenced by legislation and economic concerns in today's climate. Scripps News If you haven't yet, at what age do you think you'll retire? Most people say the magic number is 65. The actual average retirement age for people living in the United States, however, is a modestly lower 63. That's shortly after they're able to begin collecting respectable but reduced retirement benefits from Social Security. Just for the sake of acknowledging the current cost of living, though, let's say you're going to continue working until you reach your goal of 65 years of age. How much are your monthly Social Security payments likely to be then? Keep reading for the answer, and some important perspective on the matter. What is the average Social Security check at age 65? The Social Security Administration reports that as of the end of last year, the average 65-year-old was enjoying a monthly benefit of $1,611. Applying this year's cost-of-living adjustment of 2.5% would put the figure closer to $1,651 per month now. Just bear in mind that that's an average based on a wide range of inputs. Some of this crowd may be banking on the order of $4,000 per month. Other people are seeing monthly payments of less than $1,000. Still, the average is the average. This relatively small figure begs a big question: Is there a way to make the number any bigger? There is. How can I get my Social Security benefits increased? First, understand that any 65-year-old currently collecting any non-disability-related Social Security has already opted for a slightly smaller payment by virtue of filing for benefits before reaching their intended full retirement age, or FRA. (For people born in or after 1960 your FRA is 67, while for people born in or before 1959 it's a few months less, gradually scaling back to the previous FRA of 66.) The difference isn't insignificant, either. Even claiming just two years early reduces your monthly payment to the tune of 13% -- give or take -- depending on when you were born. Putting that in more tangible terms, for the average recipient, the difference in waiting until reaching your full retirement age of 67 would mean a little over $200 more per month. Not bad. For what it's worth, waiting another three years to claim benefits when you turn 70 would make your monthly benefit about 25% bigger than it would be if filing at your official full retirement age. That would mean roughly an additional $500 more per month in today's dollars for today's retirees. Is it worth working past 65? There's an additional incentive for sticking with your job for at least another couple of years after you turn 65, if not five more years. It's got everything to do with how the Social Security Administration calculates what it owes you in retirement. Most people understand that the more money you earn at a job, the more you pay in FICA taxes, and the bigger your future Social Security benefits get. There's more to the matter, though. For the purposes of determining your monthly payment, the program only considers your 35 highest-earning (inflation-adjusted) years, even if you're going to work more years than that. But you already know you're going to be working less than 35 years? That's OK. That won't disqualify you from claiming and getting something. The Social Security Administration will simply assign you zero earned dollars for the number of years less than 35 that you didn't actually earn any work-based wages. You might want to make a point of toughing it out for just a little bit longer, if at all possible. See, if you're in your 60s and still working, there's a good chance you're earning more now (again, even adjusting for inflation) than you were when you were first starting out in your 20s. A couple more higher-earning years could displace a couple of your lower-earning ones if you've seen consistent income growth over the course of your career, perhaps adding an additional couple-hundred bucks to your future monthly payment. This means even more for anyone who earned below-average wages early on in their work life but is an above-average earner now. Some other key considerations Two related ideas also need to be passed along here. First, while money is important in that it can make life more comfortable and less stressful, it's not everything. Health matters too. So does spending time with friends and family. You may have good reason for claiming Social Security benefits at the age of 65 rather than waiting until you reach your full retirement age. If you've given the matter enough careful thought and still believe that's what's best for you, by all means start collecting benefits when you're 65. While this won't be your exact same number, again, for most people this age their monthly payment is in the ballpark of $1,600. The other important point to add? Remember that Social Security was never intended to be your sole source of retirement income in the first place. The program estimates that its benefits payments only replace about 40% of beneficiaries' pre-retirement income. The rest of your retirement income will come from you. That means you're going to need to invest at least some of your after-tax income on your own, in vehicles like individual retirement accounts. Of course, working a few extra years will allow you to tuck away more money in an IRA, while also raising your eventual Social Security payment. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
Yahoo
an hour ago
- Yahoo
2 Reasons Saving Less Is the Secret To Building Wealth, According to Ramit Sethi
While focusing on saving can seem safer than potentially losing money in mutual funds, stocks and bonds, finance expert Ramit Sethi believes that this approach could leave you broke. Learn More: Consider This: A 2024 report by Janus Henderson Investors found that 48% of Americans had no investments. While some people cited a lack of investment expertise, the need to pay off debt or limited financial means as the reason, 38% simply preferred putting cash in regular bank accounts. In a recent YouTube video, Sethi explained why you should save less and instead invest your money smartly. While you might think you're making progress by saving money, you'll eventually find yourself off track from your retirement goal, even if you contribute a large sum each month. First, a typical savings account usually earns a much lower rate than the average investment return, so your money grows much more slowly. Then, there are hidden factors you might forget, like taxes and inflation, that lead to being unable to buy as much with your savings. Sethi gave an example of someone who spent 30 years stashing away $1,000 each month. Federal Deposit Insurance Corporation data showed the national average savings account rate was 0.42% in May 2025, while Sethi said the historical average annual investment return (after inflation) was 7%. According to Sethi, the person who saved would have around $383,000 after 30 years, compared to nearly $1.2 million for the investor. So, the saver would have missed out on about $817,000. Sethi added, 'This is the difference between struggling to retire at 65 versus becoming a millionaire before 50.' Explore More: The annual inflation rate reported in April 2025 was 2.3%, which was 1.88% more than the 0.42% average savings account rate. So, while your savings balance looks like it's growing each year, inflation is likely robbing you of some of your money's value. For example, if you had $1,000 in your savings account, you might earn $4.20 over the year, but lose $23.00 to inflation. So, your money's purchasing power would have gone down by $18.80, meaning you're not really getting ahead. Sethi explained that many people mistakenly believe that saving is the safe and virtuous route, but as the example showed, it actually makes it harder to grow money efficiently. He said, 'In order to build wealth, you have to go way beyond saving, and you have to invest.' While still saving cash for emergencies and upcoming purchases is smart, prioritizing investing is a better approach for preparing for retirement and building wealth. Sethi discussed how you can invest without making it complicated, and suggested ways to come up with more cash to contribute. First, he recommended a three-step strategy of taking advantage of 401(k) matches, contributing to a Roth IRA and buying target-date funds. This combination gives you free money from your employer, tax advantages and simplicity. To ensure you stay on track, Sethi suggested automatically transferring 5% of your pay to both your 401(k) and Roth IRA accounts. Then, you should set up automatic target-date fund purchases so you don't forget them. Finally, Sethi said you should take three steps to get more money rather than focus on cutting expenses, which will eventually come to a limit. These include asking for a higher salary, taking on a suitable side gig and focusing on gaining and improving valuable skills. Sethi explained, 'If you focus on earning more, you will give yourself a massive advantage in building your rich life.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Clever Ways To Save Money That Actually Work in 2025 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on 2 Reasons Saving Less Is the Secret To Building Wealth, According to Ramit Sethi Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
I Asked ChatGPT How Much Money Is Needed To Retire in 20 Years — Here's What It Said
Your lifestyle, inflation, investments, anticipated health, Social Security and other income sources have to be figured into any comprehensive retirement financial strategy. However, if you're currently planning more for your weekend than your retirement, a quick ChatGPT query can at least plant some seeds as to what to expect, and how much you might need when your work life comes to an end. Find Out: Read More: Of course, ChatGPT struggles with accuracy, context and common sense, but it's interesting to experiment with. Here's what the chatbot answered when I asked it, 'How Much Money Will I Need to Retire in 20 Years?' ChatGPT can't guess your current savings, your expected retirement age or what you think you'll need every year to be comfortable in retirement. Therefore, it prompts by asking questions, but also provides a basic example of someone retiring in 20 years, at the age of 65, with a desired annual budget of $60,000, a longevity plan of 25-30 years, an inflation rate of 2.5%-3% per year and a 5%-7% investment rate of return (ChatGPT used 6% before retirement and 4% after, which are accurate estimates). Be Aware: Your future purchasing power won't be reduced if your income increases by the same amount as the rate of inflation. Typically, however, income doesn't keep pace with the rising cost of goods and services due to inflation. Using an inflation calculator, the reduced amount of $60,000 will be around $33,220 in 20 years. But to have the same purchasing power as $60K today, you'll need $108,360, per ChatGPT. To figure out how much money you'll need to retire, you'll need to factor in value of annuity formulas, both in the future (the value of payments at a future date) and in the present (the amount of money needed today to generate those future payments). A quick Google search will give you plenty of income annuity calculators and retirement calculators. Using our ChatGPT inquiry, Assuming you'll need $108,360 each year for 25 years of retirement and get 4% returns while withdrawing, you'll need to build a nest egg of by the time you turn 65. To reach that future goal, estimating a 6% return on investments and savings, you'll need to sock away $3,813 every month. ChatGPT is an easy target for detractors; it's at the vanguard of AI chatbot technology, but it lacks the depth of emotional understanding and subjective interpretation that humans possess. However, it's still in development, and that's why it scares people. For now, take it for what it is: a brainstorming tool. To truly get an accurate idea of how much money you'll need to retire in 20 years, start with ChatGPT, then move on to more accurate calculators that include more financial fields (like existing 401(k), IRA and pension information). Even those should just be the start of your retirement savings research, of course. Your retirement plans deserve the insight that only a professional financial advisor can provide. They also deserve your time and effort, at least as much as you'd use planning your weekend. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on I Asked ChatGPT How Much Money Is Needed To Retire in 20 Years — Here's What It Said Sign in to access your portfolio
