So, like many people, after reading about the cruising lifestyle, you’ve decided to pack up and go sailing. There are many books and magazines available that will tell you about the many practical things she should check before she sails, but not many delve into the often overlooked topic of what happens to her financial affairs after she has left port. sports.
I recently had a bad experience trying to access funds from my local New Zealand bank while living in Australia. First of all, the letter I was trying to get contact details from only included a toll free number (useless outside New Zealand) and a generic email address. It turned out that both methods involved routing to a call center in God knows where. I thought I’d fix this by looking up my local bank number in the white pages online, but guess what, that local number will redirect to the call center! I had my local representative’s business card, so I thought I’d try that number, which goes straight to her desk, but she was on vacation and all I got was her voicemail. Of course, in the old days (before progress?), the person at the next desk would have picked up the ringing phone and asked if she could help me. The call center didn’t connect me with my local bank anyway, as they had a “customer service manager” who said they could help me. I groaned inside and hung up.
I tell you this sad story to illustrate the kind of problem that can happen these days. I was in Australia, with reliable phone service, but imagine if I was on Easter Island or some other remote location and urgently needed funds.
Rule 1
If you are going to be away for an extended period of time, give someone you trust or your attorney a durable power of attorney. This person then has the ability to act as if they were you personally, accessing all of your bank accounts, paying bills and receiving money.
Rule #2
Establish a fully funded working bank account. All bills are charged directly to this account, especially your credit card, which will probably be what you use the most when you are abroad, and all rents, pensions or other income go to this account. Make sure you have internet access to this account so you can keep track from an internet cafe when you’re on the ground. (However, make sure the coffee has proper security)
Rule #3
Also set up an emergency fund in addition to your work account. Things can go wrong – you may need some critical repairs to your engine or a new mast. You could get sick and you will have to pay for your treatment.
Rule #3
Make a list of all the assets you are leaving behind. Record your serial numbers. Make another list of all the important people who may need to be contacted: your attorney in fact, your attorney, your executor, and your financial advisor. You can also keep a list of all your passwords for your various internet transactions, but of course be careful where you leave them.
Rule #4
Unfortunately, there’s a chance you could die on an extended trip, so make sure your will and life insurance policies are up to date. Check with your insurance company to see if you are covered for an extended cruise; they may have an excuse not to pay if you don’t. Also, your home insurers will need to know that you are renting your home.
Get these few things right, and you should have most contingencies covered and have peace of mind on your dream trip.