An introduction and an odd question.

[mdc1979]

Greetings all. I’ve dreamt of having a boat (wife wants a cat and I can’t argue) for the entirety of my adult life. I am an active duty army officer at the halfway point of my career and have no need for a boat until retirement. Our family life wonderfully aligns in that our youngest child graduating high school.

To get to the point: is there any process directly with the manufacturers where I can pay a set amount monthly/annually now (almost in a similar fashion to a bond) where I can receive a new boat upon retirement? Does this make sense? As an investment tool this benefits both the boat owner and the company.

[danielamartindm]

Hi mdc,
I'm not aware of any boat manufacturers who do this. Yacht manufacturers do go out of business, and what would you do then? Invest your money and let it grow. When you're ready, you'll have more choices of yachts. Why tie yourself into one that may not grow with the times as well as others, or even new start-ups might be available when you're ready?

[mdc1979]

It’s a risk and that’s why it would be enticing to the manufacturer. I’m only considering the big three bc their margins make their boats so much more affordable

[Allied39]

I dare say that a boat manufacturer could probably be enticed to take your money. I have not heard of this set up before, most likely because it is a REALLY bad idea.

You would be far better to invest the income, much safer and basically no risk. In the meantime get aboard boats, make absolutely sure this is the direction you wish to go.

Seriously owning a boat comes with a great many responsibilities and costs, something that should be well thought out and well planned.
Best of luck ,
Ralph

[GordMay]

Greetings and welcome aboard the CF, mdc.

[Jolly Roger]

I entirely agree with both replies: Of course, there’s no harm in asking, but the answer is, it’s not a very sensible idea.
How long are you talking about before retirement anyway? Presumably many years, and a lot of water can go under the bridge before then, both in boats and your personal life.
Instead of giving your money to a boat builder, save it in some sort of fund which gives you a growth factor. Then when you are ready you will have maximum choice of available craft, at that time.
In the meantime learn to sail, charter different types of boats within your expected price range.
You should then be a pretty savvy buyer.

[Shrew]

There are far more boat manufacturers which have gone out of business, than there are that have remained. It is quite possible for even an established business with a long history to go bankrupt. Look at Sears, JCPenney, Child World. A boat manufacturer could easily file for bankruptcy and walk away with your investment capital.

If this is the plan, start saving the money yourself or find a financial planner who can assist with investing the money in a manner inline with your plan.

The closest thing there is currently to what you've described is buying a boat and putting it into charter with a reputable charter company that offers such programs. Moorings, for example.

[captmikem]

Think of it this way.. Say you did find a boat company, in 10 years the boats are going to be different. (If the current cat trend continues it will just be a houseboat that looks like a condo and has big engines and even smaller sails). You are binding yourself to whatever it is. And the possibility of the company going out of business is probably greater than it remaining. Your money would be gone with the company.

Also, say it costs 300,000 now, in 10 years it will probably cost 600,000 but you will have had no return on your money, the boat company will though.
Or, say you change your mind, lifestyle etc sometime between now and then.. You are locked into something you made a decision on years ago.

My advice, for what it is worth, is one of two things:

One, buy it now, by the time you retire you will have experience and with such experience you may have different ideas/goals when you retire.

Second, as folks have said, find a GOOD investment. That NEVER hurts.
Good luck!

M

[roverhi]

I would never give a boat manufacturer money without delivery of a boat. The number of defunct boat builders is legion. Maybe with the few manufacturers still around, there will be more stability but I still wouldn't front a boat manufacturer money. You'd be much better off buying a into a mutual fund, or a conventional or Roth IRA.

[NightSky46]

take blended retirement; invest as much as you can in TSP get the 5% matching and dedicate that to buying a really nice boat

[NightSky46]

Army has a really nice website https://MyArmyBenefits.us.army.mil that will let you run the blended analysis comparison so you can see exactly what you will have

[NevisDog]

Take the example of Oyster Yachts UK - the very highest reputation builder around, company was sold to a couple of investment sharks who then creamed the profits arising from the manufacturer's long-established excellent reputation, while also skimping on quality of new builds without anyone being aware; filed for bankruptcy when evidence of shoddy workmanship became apparent and the chickens came home to roost. DON'T DO IT!

[Mithril Bham]

Bad idea.

[Chas.7]

Hello,
Thank you for your service to America. I would just open a bank account for your future boat. When it’s time to make that purchase you will have the cash. Your priorities may change.
Good luck,
Chas

[Shrew]

If you have 10 years to go, there are better vehicles than a savings account to allow your money to work for you and generate some additional interest.