If you were working in Florida, would you consider buying a boat at one point in your analyst stint? Assuming you wanted to stay in Florida?
Assumptions: IB making $85k base + bonus, living in an apartment that costs you under $1000 /month, keeping your car you had in college.
It seems pretty irresponsible to buy a boat a year out of college, but under the above conditions? If you took out a $20k-40k loan at a 10 year term, your payments wouldn't be bad at all. Or would you consider using your bonus to buy it straight up? Not sure what loans are at with boats, but it could possibly be worth it.
Better yet keep it in a slip so it can marinate/corrode in saltwater while you never use it. Seriously, wait a few years until you can actually use it frequently. Boats are rapidly depreciating assets (more so than cars). Plus being in saltwater + constant sun in FL will only exacerbate that. If you were deadest on getting one, see if you can find something that is gently used, preferably in freshwater, and keep it in dry stack.
Unless you plan on going out frequently, which seems difficult during an analyst stint you may be better off just chartering with a bunch of friends. Where in FL can you get a decent place for $1k per month.
They say there are only two days you enjoy a boat -- the day you buy it and the day you sell it. Definitely doesn't seem like a good idea in general, but especially when you're still working IB hours.
You probably wont be able to use it, but the heart wants what the hears want my friend:
look into something like this http://www.321boatclub.com/pricing/ Just do your research
Their Comic Sans typeface is hurting my eyes.
Wait and see if you'd be able to actually use it and charter like others have said. And right now you may think you'll stay in Florida forever but 6 months down the road you could get an awesome offer to go somewhere else and be stuck with a boat.
On a side note and I'm not sure if this is still true and I may have the details off, but if you get a boat with a kitchen (read: kitchenette so not a Grady White or a Whaler) you used to be able to get a mortgage with a 25-30 yr am and take the interest expense as a tax deduction. This was pre-'08 so maybe things have changed.
Costs aside, It would be pretty cool if you got one you could dock and live in. Talk about a conversation starter...
I was pretty friendly with a guy years ago who got married really early (like a year out of school) and was divorced by around 28. She got the condo so he lived on a 35' Catalina. Kick ass bachelor pad and he pulled so much tail because of it. Incredible summer time thing for all of us. Unfortunately we lived in Boston so he was docked in Charlestown and decided to keep it in the water over the winter and live on it. There were many stormy winter nights when he called up friends asking to crash on their couch. It's completely doable and you can pick up a decent sailboat that's 10 years old for not too much money, much less than a condo in any major city.
If you do get one, put one of those whacky-waving-inflatable tubemans that you see at car dealerships on it
BOAT: Bring Out Another Thousand
BOAT: Buoyancy Operated Aquatic Transport
Thanks, sherlock.
Boat (n) - hole in the water where money is thrown.
Username and post work so well together here
...why don't you just live in a nicer apartment or something? under $1000 a month?
PRESTIGE Worldwide
Is nobody going to comment on the 10 year term? I don't know anything about boats, but I consider a 5 year car loan ridiculous. If you are considering taking out a loan for twice the duration on an asset that depreciates even faster than a car, then you won't be a very good analyst.
Nothing about a boat makes financial sense. Don't even attempt to apply financial logic to it.
It all depends what kind of boat. You can get a decent boat at a decent price if you buy used. Make sure it's older, has outboard motor, and don't go very high end. You can buy it cash with your bonus probably. The problem is when you want to buy the newest fastest fanciest thing instead of just a nice enough boat that does the trick. Put it under your frivolous account, but still, you can do it without financing. Plenty of nice options available UNDER 20K...
i would definitely not put $ towards a boat. too much $ tied up in a not so liquid asset, what if you get fired / laid off?
imo, better to put something you can use everyday - a nicer car or a watch.
Have had a few boats before (not in the U.S, whatever difference that makes). All have been RIBs / Speed, so if you mean actual sailing... I don't even know what to say to you.
Boats are fucking expensive. Like 'fun' cars...with a boat the purchase price is buy in. Engine Maintenance. in / out of water costs (& hassle). Mooring fees. Anti-fouling re-coat etc.
That said. Boats are fucking fun and make life better. Fishing is ok. Fishing with a boat is better. Day out with friends, girls and booze is good, with a boat ..... You get the idea.
But, you're a banking analyst with limited time so purchasing an asset that depreciates quicker than a convertible is probably just not worth it.
Wait 2 years. Then buy an ever bigger boat!
Having gotten an IB offer in Florida, I can promise you that you will not make 85K+bonus. You'd probably pull in 85k all in for Florida IB. Plus, the kind of boat you can buy on an analyst salary really isn't that cool anyway unless you're a big fisherman who goes a lot on weekends. Wait til you're older and have the money to get a good one.
The Raymond James money must be good
You'd be surprised. If he's making a MM salary in Florida or ATL he's probably got a higher standard of living than you do on a BB salary in NYC.
You guys significantly underestimate COL in FL. If he is in Miami condos can be as high as $3k/sf. South Florida (anywhere worth living) is expensive. Granted he isn't paying insane state/city taxes.
At this stage, buying a boat = very bad idea, but buying the booze for your friend who owns an awesome boat = great idea.
Considering that a new salt water mastercraft in the 23 to 25 foot range costs about 175k (I just bought the fresh water version) I'm gonna go out on a limb and say you don't make enough to afford a boat. Even if you buy used.
X-star?
Get you a nice john boat now bo. Get up in them everglades. What could go wrong?
I bought a boat 2 years out of college when I lived in Florida and I was making a lot less than 85k a year. It was a Sea-Doo Utopia jet boat and I kept it for the next 5 years. I kept it in a dry storage marina for $200 per month within walking distance of my house. I would call them 45 minutes prior and it was waiting for me when I got there. When I was done, I docked it and walked to my car. They would wash and flush it and fork lift it back into the big building. Looking back I'm very thankful I made the purchase, some of the best weekends I've had in my life with friends and family on my boat in Florida. Don't listen to these jokers, there is no better place in the country to own a boat than in Florida. Get a used jet boat still under warranty for $20k. They are safer with few maintenance issues and you won't trash your prop on all of the hidden sandbars or when you beach it. They can become expensive, but if you get a 20-23 footer it will not cause any sort of financial instability in your life, but you will be able to beach your boat on any sandbar you wish, which is priceless. Your 3-400 monthly boat bill will be money much better spent then one of your 3-400 bar tabs. And anyone that rides with you has to bring gas money or booze.
If I was on the market....
http://www.ebay.com/itm/MINT-2013-Yamaha-SX240-High-Output-ONLY-25hrs-G…
This. I'm not trying to argue to anyone that a boat is an asset that is going to earn you money (seriously?). Obviously it's a quickly depreciating asset. But I feel like the same people saying how "cool" it is to spend hundreds of dollars in NYC clubs are ALSO saying how stupid it is to spend money on boating? LOL ok. Also I said $20k-40k range so idk where the fuck $175k is being talked about lol
Post about the boat club membership was actually useful.
Out of principle you shouldn't do that club. The only membership anyone would want is Saturday and Sunday and they don't offer it.
Max out your 401k first. Then, open an IRA and max that out. Why buy a boat when you could probably retire a year or two early?
Is this a serious question?
Why enjoy life more for decades when you can maybe quit one or two years earlier, if you even live that long?
Of all of the good reasons to not buy a boat in this thread, this is not even close to being one of them.
If you're working in Florida, go ahead and buy a boat.
Specifically buy one of those John Boats they sell at Walmart or Bass Pro for a few hundred bucks a pop.
Make friends with someone who has a boat, as someone who is in the Miami area instead of the Tampa area ( Cause you must be at RJ) I have 3 family members with boats and countless friends have them, going out on a boat is great, but the costs of one are much greater than the boat it self. Insurance, gas, maintenance ( Trust me, It will break) SEA TOW insurance, the list goes on.
A boat is an awesome thing to have, and I've always wanted my own, but I know it costs more than just the cost of the boat.
But once you star making some real dough and are going to be an an area for a bit, hell yeah go for it.
To give some context: I'm in FL (probably the same firm), young, and have a boat. It's awesome.
However, let me give you some recommendations: 1) I'm in trading and have a lot more free time than you 2) I'm mechanically inclined and can do a lot of maintenance myself 3) I have an inexpensive place to store my boat
Because of these three reasons I usually tell people to just join a boat club. It's not the most financially viable option, but wise financial decisions don't normally go hand and hand with boats. You want to go out on the beautiful Saturday afternoon that you're finally not working and get in a boat that you know is good to go. I'd also recommend splitting the membership with someone else on your floor. Keep it simple you want butt cheeks and island parties; not the hassles of boat maintenance.
Last thought: being single makes having a boat a lot more fun
normally I'd say this is a good idea if you're single (for the reasons dingdong mentioned), but if you're in FL (Miami I'm guessing), even a nice center console will look like a kayak compared to the yachts you'll be surrounded by. Maybe if you were in South Carolina or George, but Florida? nah bro, get a nicer pad and work on your biceps, summer's almost over.
Endless summer brah. Just BC some Russian oligarch has a 300'+ super yacht is not a good reason to avoid getting a boat. Logic is almost as bad as the early retirement guy.
http://www.wallstreetoasis.com/forums/best-tie-brands-for-analysts
As an IB analyst, when would you have time to use said boat?
I'd wait a few years or until your hours are 80 or under per week. The first two years you won't even have enough time to sleep or eat properly much of the time, let alone take a boat out for a cruise.
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