View Poll Results: What did you spend as a % of your wealth (identity not shown)

Voters
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  • Less than 2%

    10 14.49%
  • 2% to 5%

    12 17.39%
  • 5% to 10%

    21 30.43%
  • 10% to 20%

    11 15.94%
  • Over 20%

    15 21.74%
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Results 1 to 10 of 57
  1. #1
    Join Date
    Feb 2014
    Location
    The Northern Powerhouse
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    3,255

    Default How much to spend on your boat compared to your wealth?

    A yacht is a weapon of massive wealth destruction, but how much is wise to spend in relation to your wealth?

    The super rich set an example:
    Bernard Arnoult: https://www.superyachtfan.com/superyacht_amadeus.html.
    His $150m yacht value is 1.5% of his net worth.
    Abramovitch: https://www.superyachttimes.com/yach...eryachtsmonaco.
    His $340m yacht is about 15% of his net worth.

    How do you work out the right amount?

    What did you spend?
    Last edited by Zing; 28-11-19 at 15:04.

  2. #2
    Join Date
    Apr 2008
    Location
    Isle of Man
    Posts
    2,164

    Default Re: How much to spend on your boat compared to your wealth?

    I have no wealth so 100% too much according to the boss

  3. #3
    Join Date
    Feb 2015
    Location
    Conwy
    Posts
    4,341

    Default Re: How much to spend on your boat compared to your wealth?

    Lets just say it eats heavily into my disposable income.

  4. #4
    Join Date
    Jun 2013
    Posts
    3,695

    Default Re: How much to spend on your boat compared to your wealth?

    Define wealth. If you mean liquid assets, it was pretty much 100%. If you mean the figure I would leave in my will it was around 10%
    If found in the Brexit forum, please return to the real world.

  5. #5
    Join Date
    Dec 2005
    Location
    Live London
    Posts
    3,997

    Default Re: How much to spend on your boat compared to your wealth?

    There was some sage old broker on the TV once ( Monaco Show I think?) who said one should spend no more than 10% of ones wealth on a boat.

    It is probably an OK rule of thumb, however wealth and income to many are very different things.

    Home owners in London who have been in the market for years will be worth a fair bit on paper, but in my experience their income is also well committed ( mortgages, school fees, holidays, cars etc).

    So you have 2 things.

    a. How much is is wise to put into a boat as a percentage of your overall. Lets say 10%

    b. can you afford to run it from freely disposable income? I do much of my own work, I shop about etc but the sum spent running my boat by the time you add up mooring, insurance, servicing, other problems, diesel and flights is considerable. For most that number is probably more significant than the percentage of wealth when it comes to owning a boat.

    Boats cost more too run as they get older, and they of course depreciate so you have an almost opposite relationship where as a percent the running costs are rising.

  6. #6
    Join Date
    May 2001
    Location
    ation, Loc: ation, Loc: ation.
    Posts
    16,720

    Default Re: How much to spend on your boat compared to your wealth?

    Are we talking purchase price or running costs?

  7. #7
    Join Date
    Feb 2015
    Location
    Conwy
    Posts
    4,341

    Default Re: How much to spend on your boat compared to your wealth?

    I think it's more complicated than even that. IMO boats are much like cars, with noticeable exceptions, that are disposable assets and should not be included in wealth. And that boats over their lifetime apart from running costs are not much more than cars and may be even less. For instance over a 20 year period you will go through maybe 4 x 50k cars less resale and a single instance of a boat at 200k less resale, but recoup more as a percentage from your boat than your cars. Further how can you assign wealth to a fast depreciating asset? It has a current value only and cant be seen as an investment.

    edit (internet wobbly) i.e. for me a better question is what percentage of disposable income rather than wealth is a better measure
    Last edited by BruceK; 28-11-19 at 14:22.

  8. #8
    Join Date
    Dec 2005
    Location
    Live London
    Posts
    3,997

    Default Re: How much to spend on your boat compared to your wealth?

    Quote Originally Posted by petem View Post
    Are we talking purchase price or running costs?
    You cant have one without the other really ( short of some amazing charter deal where it rents in the off season and you can use it all summer!

  9. #9
    Join Date
    Feb 2015
    Location
    Conwy
    Posts
    4,341

    Default Re: How much to spend on your boat compared to your wealth?

    Running costs I write off as pound per fun and balance those in the ledger of life. Otherwise the word wise in the question is in shambles

  10. #10
    Join Date
    Feb 2014
    Location
    The Northern Powerhouse
    Posts
    3,255

    Default Re: How much to spend on your boat compared to your wealth?

    Quote Originally Posted by CLB View Post
    Define wealth. If you mean liquid assets, it was pretty much 100%. If you mean the figure I would leave in my will it was around 10%
    I was referring to net worth, so the nominal value of your estate. Liquid assets don’t matter much as illiquid assets can usually be converted to liquid assets with a bit of time and effort and vice versa.

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