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.

--
"j" ganz @@
www.sailnow.com

"Maxprop" wrote in message
ink.net...

"Capt. Rob" wrote in message
oups.com...
Fine. Let's calculate an example. Let's say that a Beneteau 35s5 is
going
for $64k and you have a down payment of 10%. Show me how you are going
to
save money, or at least not lose any, by financing the boat. We'll
assume
you have sufficient money in relatively liquid assets to purchase the
boat
outright.

Wow. Max, you don't know much about money do you? Many people can make
more money with a 64K cash investment spent elsewhere that would easily
outrun the losses for financing the boat.

Really? Show me--and I won't take your opinion for fact. I'd like to see
some hard evidence. Most boat loans are going to be in the 6-9% category
(probably at the high end for Jon), and I doubt if you can do better than
that investing the same amount of money in low-risk paper. My
tax-deferred municipal bonds are producing less than 5% currently, and
they never exceed the going consumer loan rates. I cite munis because
they are the most secure investments I have. CDs are generally doing
about 4% or less, and relatively low-risk mutuals aren't doing a whole lot
better, but these are probably going to come closer to the banks' consumer
loan rates than any other investment. And they are far from risk-free.
2001-2003.

Unless you plan to keep her
forever, you're only "leasing" her in effect anway. Why hand over the
entire amount if you plan to trade up anyway in 5 years? In our case we
bought the boat outright, but there were serious financial profile
factors to consider as well for us.

Whatever.

Max