"Capt. JG" wrote in message
...
"Maxprop" wrote in message
nk.net...

"Capt. JG" wrote in message
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Bzzt. Slightly more than 5%, and it's not a boat loan! My IRA return is
nearly double that. Real Estate (so far) is triple or better.

Please give me the name of the investment firm doing your IRA--according
to MONEY magazine, the best in the country are just barely doing better
than 6% yield. As for real estate, big money can be made in your area,
but only if you invested some time ago. I'm betting that you don't have
the means to invest in anything of substance today, considering that just
about anything bigger than a postage stamp in the Bay Area goes for
megabucks. If you have the means to make those sorts of RE investments,
you have the means to buy your boats for cash. And that's my
point--unless you can get a high rate of return on investments you can
afford--better than the interest on your boat loan (or your home equity
loan, if that makes you feel better)--you're better off paying cash for
the boat. From a strictly financial basis, you're better off not buying
a boat at all.

Well, I agree with your last statement, but I like to sail. It's a curse
really.

You're also making some assumptions that are not valid... e.g., where I
invest in RE.

Let me ask you this, Jon: if your home equity loans are so cheap and
your investments so damn productive, why haven't you maxed out your home
equity and invested it?????

Why do you think I haven't? (A rhetorical question)

You've already indicated that you haven't by stating that you either have,
or plan to, take a home equity loan to buy your boat.

Max