Touring - Selling Everything and Leaving

I am really wanting to do a world tour within five years, but I am now thinking about the economics of it. I know that I will have to sell everything I own, including house, car, furniture, etc.

I am curious to how others, that have done world tours, took care of their finances? I have rental property, which I know that a realtor can manage while I am gone, but how about stocks, cash, bonds? Did you all give you financial advisor discretionary power to invest your money?

Next question, what about employement. I am a little concerned about that. I am a systems administrator and am somewhat concerned that when I come back, getting another job may be difficult after being out of employment for so long.

I appreciate your alls feedback.

Well letting go of the world can be a big descision, but there is something about doing that very thing, it changes you , and makes you see the bigger picture.
Touring the world by bike would certainly get you into a different reality. I say based on your post that you are indeed in need of a change. Just get rid of everything, a job is a job, just get another one when you feel like it.

Personally, if you have stocks and bonds and such, there's no way I would get rid of it. I would suggest getting a financial advisor who can manage your portfolio while you're away. That way, if you come back and you can't get a job right away, you will at least be able to liquidate some of your assets to live on while you search for a new job. Find a financial analyst you can trust to make the right moves for you, and check in with them as often as you feel like it to see how your stock is going. Maybe you can have them email you a few times a week and you can still check in and make some business decisions for your portfolio?

Why sell your rentals? Can you hire a property manager and keep in touch? If I had rental properties, I would hire some college kid for like $250- 500 a month to collect the rent and deal with any potential problems. Get one of those phones that you can use here and overseas so you can check in every so often, and if there are problems, put the college kid in touch with your attorney. A good attorney acting on your behalf would do you some good. You can give your attorney power-of-attorney to handle your business decisions only with regards to your real estate. I wouldn't give up the real estate unless the value of real estate is going down and you need to dump it quickly and you have a seller who will be paying a good price for your property. Otherwise, there's income to be had by keeping onto it. You may need to liquidate those properties somewhere down the line, and if you've paid on the long enough, you can at least refinance them if you haven't already at a lower rate and get some money on the refi.

If you're leaving and worried about your job, stop worrying. It's a chance you're going to have to take, and if there isn't a job there when you get back, you will at least have your portfolio and your real estate to keep you going until something turns in your favor. I really think that you probably will come back with a lot more worldly experience, and I think that employers will look positively upon that. I have friends that travel (but not with bikes), and when they go on their backpacking adventures, they always come back and land on their feet. It's your decision to make, and your risk. If you go, just be prepared for the likelihood that you may not find work, and then do something preventative to lessen the blow. The average worker is out of a job for 8 months before they find one, so put together a nest egg of 5- 8 months in an interest bearing account at your bank that you can't touch (or a money market account even) while you're travelling, and when you get back, you'll at least have a little bit of protection from being completely broke.

If you have a house and you're living in it, is there any chance you can rent it rather than sell it? I just believe that a house you own is worth more to you owned than if you sell it and lose a potential source of money. Is there any way you could possibly rent it out to a college student- like a grad school student who's not a party type that you can run a credit check on, then have the person who's taking care of your properties collect the rent? Then perhaps get a contract together that your lawyer draws up saying that they must pay the rent within 5 days of the due date, and if they miss that grace period more than 2 times, they are automatically evicted. Demand a security deposit of first month's, last month's, and a one month security deposit and hold it in a bank and make them agree that if they do damage they are evicted for, the security deposit covers the damage repairs first, and after unpaid rent is subtracted, any leftover money goes to them. Or better yet, charge them a lower rent in exchange for managing your rental properties- that way, you get someone to handle your real estate (they will work wiith your lawyer too so you can rest easy) and rent out your house and not have to worry about it while you're away. Switch all bills into the renters name and do a background and credit check on them. I'm sure you can flush out the bad apples that way. And leave the furniture- college students (at least in my day) usually rented apartments that were furnished. It could be a plus. If you have valuables like a television, stereo system, computer, etc, I'd put that into storage or in a friend's or family's basement for safekeeping. You never know what a stranger may do to your valuables.

If you have a car, see if a relative or friend can store it in their garage while you're away. I wouldn't sell my car unless it was a piece of crap that I wanted to get rid of anyway. I mean, when you get back, you may need that car right away for some interviews- no car means you may be in trouble. That would suck.

I think you have a great opportunity, and if I had the chance, I'd take it. By doing some careful planning ahead, I think you can probably doing it without having to sacrifice too much. Bounce some ideas off some people, get your ducks in a row, and make your plans. My friends usually plan a year in advance- they take the entire year to get their loose ends wrapped up, then they leave out for a year or two and travel and see the world. Aaaaaah, that's the life... *sigh*

Koffee

Koffee makes some excellent points. When my wife and I decided to live in Europe for a year (before children), we rented our house, made many telephone calls to banks, property management company, etc., and all worked well. We also had savings which lasted us for around 10 months upon our return; we also paid off all of our debt, minus the house. You will have to leave power of attourney with someone, though. In the event that something should happen, you want someone you trust to arrange things for you. And, leave a will. This is a big step. Plan, plan, plan!

Leave with as few worries as possible. We saw ten countries, met some amazing people, and gained an incredible perspective on our country and the world. No experience will ever compare! All of this talk about travel is so intoxicating, I need to sit down. Go for it!!

"Two roads diverged in a wood, and I--
I took the one less traveled by,
And that has made all the difference"
--Robert Frost
Cheers,

Urbanmonk

... All of this talk about travel is so intoxicating, I need to sit down. ...
Cheers,

Urbanmonk

You type standing up too? ;)

-mark

As far as investment portfolios go, I've got direct on-line access to all my accounts, therefore, I can initiate almost any kind of transaction or change while on the road.

George

As far as investment portfolios go, I've got direct on-line access to all my accounts, therefore, I can initiate almost any kind of transaction or change while on the road.

George

That might not be an option in Mongolia.

-mark

That might not be an option in Mongolia.

-markActually, there are a couple of internet cafes in Ulaanbaatar.

George