Yup! I am 33 shoping for another boat currently. The boat will be between 150 and 200K. Even if I had all the cash in hand, I would be nuts to exhaust it. 200K liquid (and expendable) is extremely rare at age 33, or at ANY age for that matter. If I were to exhaust my mutuals, savings, income producing real estate and 401K I could raise up a significant amount of the purchase price....... and then have nothing until I am 43 (maybe), except that is of course a 12-14 year old boat. Or I could have the cash stay where it is, earn ME money, continually add to it and enjoy a BADASS boat while I am 33 instead of 50 when I will most likely want something along the lines of a cruiser/houseboat.(or be DEAD for all I know). Life is too short.Originally Posted by buck183
Not preaching to anyone but I know what I have now and will have a payment easily over nothing to my name for a number of years. With the field I work in, tomorrow could be much different than today. I want to enjoy my new Fountain/OL/Cig NOW. Not when I am 60 and can stroke a check for it.
You can get a loan for 5.5%. With that 150K to 200K, you can easily earn 5.5% on that money... if you cant, get a new financial advisor.
The stock market has some wonderful buys right now. I am just pissed I own General Electric instead of Gillette
The 645 million Warren made was over the course of 16 years, a typical boat loan period. I know he had mega money into the company but it is all relative.
On this next boat I am going to finance it. Just for giggles I am going to pick a mutual fund, put 10K (or about 5% of the purchase price) in it and see what it does. If you add up 5% (at a minimum) you would be amazed on what that equals out to in 15 years.
Yes there is risk involved but if GE/Pfizer/Microsoft go under it means the world had ended and your boat will not matter.