Wilbur Hubbard wrote:
The average idiot buys a boat for say 100K and finances it for ten
years. He fits it out and keeps it in a slip. The fitting out costs 20K,
the slip costs 5K per year, the insurance costs 1K a year. Haulout for
bottom paint 1K a year. Fuel 1/2K a year.

After ten years the idiot has spent 250K paying back the loan, 20K
fitting out, 50K slip fee, 10K insurance, 10K haulout, 5K fuel, oil,
filters, etc.

345K invested in a 100K boat that perhaps can be sold in ten years for
75K. Net loss of 270K. You pay 27 thousand dollars a year to use your
boat a dozen or so weekends a year. Stupid, just plain stupid!

Think about it.

Wilbur Hubbard


I paid cash for the Mac26M, new and equipped as ordered. My slip fees,
insurance, and other expenses are much lower than the examples you give.
But I don't look down my nose like you do at people buying boats,
houses, cars, or consumer goods on credit. If it weren't for credit
(including credit cards), the US economy would go down the tube, lots of
homeowners would be living in trailers or tenements or on the streets,
and many more would be unemployed.

The issue isn't whether a person uses credit, it's how he/she uses it.
For example, a young family buying a home and car on credit and using
credit cards (with low interest rates, because of their good payment
history) and a relatively low total balance to level out major purchases
is doing the right thing, provided their total payments and total debt
load are moderate relative to their income level and reserves, and
provided they are keeping the percentage of their income invested in
savings, payments into 401 Ks, etc. high. In particular, they have more
budget savvy than someone who prides himself on being debt free but who
hasn't made wise long-term investments.

On the other hand, if owning one's boat, home and cars debt-free and
having lots of savings and investments is what's important, then you
should congratulate me. - Thanks Wilbur!

Jim