Payments or Money!

[brianthomas]

I bought a new boat in June and borrowed $250k after only $20k down. Interest rate is 6.75% and the payment is $1,900. I love the boat and can afford the payment but I get so pissedddd when writing the check my hand shakes! I can sell some stocks and pay it off but it would take a big chunk of what this 44 year old has saved. In all of your never to be humble opinions, should I pay this thing off or grit my teeth and keep the loan? It is the only loan I have other than the house as I usually pay cash for things like cars and just bought a Tahoe. I just keep thinking I will make more on the investments in the long run than the interest costs on the loan.

[riverroyal]

how you sleep at night.If you pay it off what are you doing with the 1900 extra a month?

[slowinhavasu]

Yep, big problem................

[JB in so cal]

Is your boat payment higher than your house payment? Is your income suitable for both? Do you enjoy your enough to justify the payment? What were you effin'thinking????

[brianthomas]

Boat payment is certainly higher than the house payment. Built the house 7 years ago, 2,800 sq. ft. with a 1,100 ft. garage next to a nine hole golf course. Paid $40,000 for the lot and $195,000 for the house to be built including lots of extras. Cheap area to live. I can say all this because I don't live in your area but really enjoy all of your boating and misc. knowledge. I make a good income and generally save right at $40,000 after tax dollars per year. If I paid off the boat I would certainly increase our saving rate by the $1,900 per month as all savings get transfered out of my checking acount automatically the first of every month. Keeps us from spending any more than we do. We live well and really have no business increasing our spending.

[riverroyal]

give the 1900 to a compton charity

[brianthomas]

I do write off all of the interest on the boat as it qualifies as a second home. Not really your type of boat but it is a new 38' Silverton Convertible with twin 8.1 Crusaders. Spent about 40 nights on it since late June. Perfect family boat as the kids are 11 and 7. We take one 700 mile round trip each summer over 15 days.

[riverroyal]

so the money to pay off the boat is in stocks?Which is making you money,thus making that 1900 payment easier???

[JB in so cal]

I do write off all of the interest on the boat as it qualifies as a second home. Not really your type of boat but it is a new 38' Silverton Convertible with twin 8.1 Crusaders. Spent about 40 nights on it since late June. Perfect family boat as the kids are 11 and 7. We take one 700 mile round trip each summer over 15 days.
Sounds awesome. I spent a few nights on my parents old cabin cruiser. As a kid, it was some of the best times...Dana Point Harbor.....

[brianthomas]

so the money to pay off the boat is in stocks?Which is making you money,thus making that 1900 payment easier???
Oh no. Never spend any invested money unless it is a major purchase. I could increase my savings rate by $1,900 per month if the payment were gone.

[Froggystyle]

If you have your money in stocks and they aren't yielding greater than 6.9% you need to re-evaluate your investments in my opinion.
I am a lot better at investing capital than my bank is. I don't have a single investment that doesn't make more than what I have borrowed on my toys, so it is a no-brainer for me. 12K cash into a Rhino or $89/month for two years... Hmmmm... do the math on that one. You can't buy money that cheap right now, and my 12K is making me a hell of a lot more than $89/month...
Once the 2 year term at $89/month is up the rate skyrockets. Then I will pay for it outright or re-fi it if possible.
I just got introduced to an investment opportunity last night that pays 4-10% per month... they are out there, and people are looking for money everywhere. Take your $250K and go find some of them... your boat payment will make itself if you do.

[brianthomas]

I have had average annual returns of around 10% for each of the last two years. Not great but mostly blue chip stocks. I just can't get my mind around this stupid payment. Actually it is the same thing with my 5.75% mortgage with 23 years left on it. Would be nice to be able to say the house is mine but that money is hard to put back into savings (investments). I do owe money on the wife's car. They had 0.9% interest when we bought it and the payment is $188.26 / month. They take it right out of the checking account. I usually laugh each month when I see it on the statement. Maybe I should see if the boat loan holder can make monthly automated withdrawls out of my checking account. Hmmmmmm, might take some of the sting out of it. Crap, note to self, shut up and write the check! God I love that boat!
http://www.silverton.com/models/38C/38ConvGallery06f.html

[Jyruiz]

I don't have anything useful to add, but that is one nice boat you got there.

[wsuwrhr]

I just wet myself a little.

[brianthomas]

I don't have anything useful to add, but that is one nice boat you got there.
Thanks J. We went from a Searay 300 Sundancer with twin 6.2 Mercruisers to this. I still have to pinch myself. We tow a 16' searay Laguna with a 60 Merc behind for skiing and taking the labrador to shore. Great weekends!

[socalmoney]

Dude, rent that out for Porn movies and your set.

[brianthomas]

Dude, rent that out for Porn movies and your set.
Dude,,, I have a 6' 140lb. wife! Any porn on this thing is with me and her or I get one of those black eyes like in another thread.
Just cause she is a Physical Therapist she thinks she can take me!
Ok,, I give! Start the cameras.
Note to self,,,, 10 years younger wife has to be taken care of ,,,, well.

[squirt'nmyload]

are you related to blown dough??

[MBlaster]

I don't see the problem. Your boat loan is 6.75 which is a good rate. Your house is at 5.75, also good. Both are tax deductable. I'd send more to principal and work to pay the house off sooner. You probably won't have the boat over 6 years so I'd just keep making the payment till you are ready to sell.

[shueman]

$1900 is my house pmt & truck pmt COMBINED....:mix:

[EAZYKILLER2006]

I bought a new boat in June and borrowed $250k after only $20k down. Interest rate is 6.75% and the payment is $1,900. I love the boat and can afford the payment but I get so pissedddd when writing the check my hand shakes! I can sell some stocks and pay it off but it would take a big chunk of what this 44 year old has saved. In all of your never to be humble opinions, should I pay this thing off or grit my teeth and keep the loan? It is the only loan I have other than the house as I usually pay cash for things like cars and just bought a Tahoe. I just keep thinking I will make more on the investments in the long run than the interest costs on the loan.
I SAY PAY IT OFF...we also buy everything cash ...we just have the 2 homes calif and havi...we have more money a month for fun...and less stress...if we start wanting a few more things... we just sell another home... YEA THAT WAY, IF SOMETHING HAPPENS TO ANY TOY...YA JUST SAY "F* IT~ ITS PAYED FOR..." (we try to remember life is to have fun and the toys are just that...items to have fun with...)

[Powerquestboy]

Your investments are making more than you are losing in interest on the boat loan. Plus your writing it off as a second home. Cash flow is not a problem. Just make the payment and enjoy it. Something about taking money out of an appreciating investment and dumping it into a depreciating asset that never sounds like a good idea to me. Sometimes its a better idea to use other peoples money.....as long as you have the cash to back it up. Nice boat!

[No Name]

If you have the means pay the shiat box off, pay the insurance if full once a year and forget about it. It makes it so much nicer in the off season when it’s just rotting away and you’re not writing out a check every month for it.:)

[riverbound]

I find it funny that, you seem to be succesful in life and seem to be doing pretty well financialy (or at least are trying to portray it). Yet you are coming to a boating site asking for financial advice?? I would say that most of the people on this site are not the ones to ask for advice for when it comes to making wise investments.

[HYPNAUTIC]

it doesnt make sence to me to cash out on an investment that is yeilding a positive return to payoff something that is depreciating
but what the hell do i know:hammerhea

[a catered life]

$1900 is my house pmt & truck pmt COMBINED....:mix:
wow:supp:
$1900 is all of our house bills for the month but were different we dont have car payments or boat payments......seems like you dont have a cash flow problem so why not pay the boat off on a cash deal and be done with it....definally would have gotta a sweeter deal....but i must agree it sounds like a great boat and it seems like you bought it for a better reason family:) ..

[catman-do]

You have a payment with a 6.9 rate. If the stocks arent making enuogh to cover that 6.9 PLUS the taxes you will pay once they have been cashed out then i would opt to pay. However if you are making the 6.9 plus the costs of cashing out then keep the investments.

[superdave013]

dude's rolling a 38' silverton and still saving a meager 40K+ a year.
I'd say what ever you are doing just keep doing it. You seem to have something figured out.

[Hallett19]

If you are only using it once a year, you should have just rented something. Sell the boat, keep the 1900 a month and the stocks and rent a boat!!

[Roaddogg 4040]

l always wanted a boat payment that is bigger that my house payment!!!:)
Steve

[CornWater]

l always wanted a boat payment that is bigger that my house payment!!!:)
Steve
Buy a DCB....
:D

[ChumpChange]

I just got introduced to an investment opportunity last night that pays 4-10% per month... they are out there, and people are looking for money everywhere. Take your $250K and go find some of them... your boat payment will make itself if you do.
Wes: That's a really great rate of return. Make sure it is legit and not a Ponzi scheme.

[Phat Matt]

Set up the automatic payment and forget about it. Keep your liquid cash making investments. That's what I would do anyway. I get pissed if I have to write a check too. It's much easier when it's just numbers moving from my online account. It doesn't seem like money that way. :D

[Froggystyle]

Wes: That's a really great rate of return. Make sure it is legit and not a Ponzi scheme.
Oil and Gas. Plain and simple.

[al cole'holic]

Oil and Gas. Plain and simple.
...you must have actually opened that piece of mail :)

[EmpirE231]

DANG... you people with the small mortgages!! am I the only one with a 3k mortgage :hammerhea
ok it should be as simple as this.... if your money is making you more than the cost to borrow someone elses money... then borrow someone elses money! you're saving more that way!

[dumbandyoung]

id say keep the boat and do a automatic withdrawal... if you have investments bringing you that good of a return keep it. and id think ud loose to much money selling the boat. i have a $800 truck payment.. it makes me sick but i love the truck. so wat i did was payed 6months in advance so i dont have so write the check every month.. same with insurance a pay the whole year at once... but im 20yrs old drivin a f250 powerstroke. imaging how high that is... haha maybe your finacnce company will let you make payments in advance too.
it helps ease the pain.:idea: :idea:

[MR HARLEY]

l always wanted a boat payment that is bigger that my house payment!!!
Buy a DCB....
:D
Wrong. :D
. i have a $800 truck payment
Wow , thats more than my DCB payment.................:lol:

[dumbandyoung]

Buy a DCB....
:D
yah that will drain your wallet haha:shift:

[MR HARLEY]

yah that will drain your wallet haha:shift:
Just like your $800 truck payment. :hammerhea

[ChumpChange]

I get pissed if I have to write a check too.
Especially when you have two boats to write checks for:cry:

[dumbandyoung]

damn.. thats gotta be nice haha

[brianthomas]

It is not as though we don't use it. On top of a boat vacation we use it every weekend for the 7 months it is in the water. This year in our 7 month season I stayed at home only one Friday night and no Saturday nights.
Thanks for all the insight. Seems opinions are pretty well evenly split here. Just like my own thoughts. I assume many of you are in the same position with regards to cash or credit.

[reDECKulous]

let's see a pic of the boat

[Chipster27]

If you have your money in stocks and they aren't yielding greater than 6.9% you need to re-evaluate your investments in my opinion.
Froggy says it best. Is your money making money, or costing you money. Do the math. If your investments are yielding more than the loan, keep the money in your investments. An alternative is to use a HELOC @ about the same interest, but you can write it off which nets a lower rate. For someone with your kind of income you probably need the write off.

[Hardly Satisfied]

Wrong. :D
Wow , thats more than my DCB payment.................:lol:
hey big baller

[Hardly Satisfied]

Wrong. :D
Wow , thats more than my DCB payment.................:lol:
hey big baller

[brianthomas]

I have a pictue of the boat that was sent to me as an e-mail atachment. How do I post it?