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Old 04-21-2012, 07:45 AM
emanon1501 emanon1501 is offline
$ Saving HS Freshman
Join Date: Jan 2011
Forum Posts: 115
Default Am I in the position to buy a used boat?


I need your input to help me determine if I am in position to buy a used boat or why I should not buy one. Annual expense will be about $2,000, which includes slip, fuel, insurance, etc. I will not buy boat cash even though I can. I am looking to buy 10 to 20 years old boat on a 5 years (not 15 years) loan for less than $10,000. My feeling is that paying cash on toy is not a good idea. If I am in the bind, I can turn it around and sell it while I still have plenty of savings. On a good month, I can snowball it. I have been thinking about it and wanting to get another one as I am very passion about boating. I was even a member of Untied State Coast Guard Auxiliary. I sold my last one 6 years ago to clean up my debt.

Our financial health as of today:

Mortgage is 15 years loan (about 13 years left) with 3.75%, and it is less than 25% of our net income (including tax and insurance).

No other payments or loans.

We never carried a balance on CCs after we (mostly me) wised up 6 years ago.

15 months emergency fund in liquid state (savings account)

Have plenty of savings in non-emergency savings account that will cover for repairs. I am also a handy man, so I can n do my own repairs.

25% of my income is going to 401k and Roth. We are 38 years old, so we have about 25 years to go. We already socked away more than $100,000. We are little behind, but at 25%, we will catch up.

Once in a while, I buy some ETFS, Bonds, etc. for med to long term investment.

Steady job and if I lose it, I automatically qualified for SSDI, which can take about 1 month to 6 months to process because of the nature of my disability.

I am a graduate student with two more courses left and I have no student loan. I am expecting at least $10,000 raise after I get the degree as I work in IT field.
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