Probably a dumb purchase financially...

[disneysteve]

If you want to get thrashed, go post on bogleheads.org that you bought a $4k watch.

What is everyone there saving their money for? Is it just to pay for their funerals and pass down to their heirs?

We could all be living in tents and saving 80% of our income and retire early but what fun would that be? You need to have balance. Save adequately for the future but also enjoy life today. Nobody knows what the future holds.

[Leo]

I'm nitpicking,

Yes, warranty card is stamped by an Authorized Dealer of Omega.

To be honest, I was debating if I want a Rolex or Omega but I don't wanna spend more than 3k for a watch. Omega Speedmaster is the closest one I could buy in terms of budget, Not a lot of discount in the grey market for Rolex.

We all know that Rolex has the bigger name and like you said, resale value is better. But I didn't find anything that I like that fits my budget for Rolex. I didn't like their design. I feel like my taste as a millenial doesnt fit with Rolex, the only design I liked is the Rolex Oyster Perpetual 39 which is considered the cheapest and entry level because it is simple.

I inherited a 1954 Omega from my dad when he passed away several years ago, so maybe that's why I like Omega brand better, and I like the design of Speedmaster, how it looks, the story about it, etc.

I'll keep this for a lifetime and I don't plan to sell this and I don't plan to buy another expensive watch.

I don't wanna talk about watch anymore because I feel like most people in this forum doesnt know or doesnt care about watches but thanks for bringing it up.

[corn18]

Yes, warranty card is stamped by an Authorized Dealer of Omega.

To be honest, I was debating if I want a Rolex or Omega but I don't wanna spend more than 3k for a watch. Omega Speedmaster is the closest one I could buy in terms of budget, Not a lot of discount in the grey market for Rolex.

We all know that Rolex has the bigger name and like you said, resale value is better. But I didn't find anything that I like that fits my budget for Rolex. I didn't like their design. I feel like my taste as a millenial doesnt fit with Rolex, the only design I liked is the Rolex Oyster Perpetual 39 which is considered the cheapest and entry level because it is simple.

I inherited a 1954 Omega from my dad when he passed away several years ago, so maybe that's why I like Omega brand better, and I like the design of Speedmaster, how it looks, the story about it, etc.

I'll keep this for a lifetime and I don't plan to sell this and I don't plan to buy another expensive watch.

I don't wanna talk about watch anymore because I feel like most people in this forum doesnt know or doesnt care about watches but thanks for bringing it up.

Cool, then you are good to go.

But you have found a kindred spirit in watches. That image I posted has about $250,000 of watches on it that I have bought and sold. I love the intricacy and workmanship of the movements. And the history is awesome. That's why I want another Speedy. I can live without a sub.

If you want to hang out with fellow Omega and Speedy fans, sign up on https://omegaforums.net. But watch out, you get a disease after you buy your first one.

[cypher1]

Based on Corn18's image I'm currently wearing the Casio G-Shock DW-5600E as my daily. Originally used for working out and projects outside. I don't know much about watches but have an older Kenneth Cole for going out, and a Waltham pocket watch handed down from my mom's side of the family. In fact, now that I think about it, I don't think I've ever bought my own watch. They've all been gifts.

Back to the original topic, get what you like. If you have all your other finances in order, don't feel guilty splurging. Everyone should have their own collections/hobbies.

[scfr]

Not really sure what triggered my impulsiveness today. I'm justifying my purchase by making a contract with my wife that this is a gift for myself for my 28th birthday today, upcoming 29th and 30th birthday gift and she doesn't need to give me anything for 3 birthdays.

So, this is the part of your original post that jumped out at me.
Was this watch a purchase that you planned for in advance?
And did you consult with your wife before you made the purchase?
If the answer to those questions is "no" I actually do think it's a bit of a problem.

[disneysteve]

And did you consult with your wife before you made the purchase?

That's a fair question. Do the two of you typically discuss large purchases in advance? Would you be okay if she came home tomorrow with a new $4,000 designer dress?

Whether or not you can afford the watch is one thing. How you went about buying it is a separate issue.

[cypher1]

So, this is the part of your original post that jumped out at me.
Was this watch a purchase that you planned for in advance?
And did you consult with your wife before you made the purchase?
If the answer to those questions is "no" I actually do think it's a bit of a problem.

That's a great point. I'm not married. But if I was, and my partner just decided to splurge $6K on an item they wanted with our money, I would be upset. Now if I knew they were saving for that item ahead of time on their own, I'd be more understanding.

[TexasHusker]

Sorry I didn't mean to brag, like I said, I was just overwhelmed and this forum really helps me to become smarter and better financially. All my best friends are not here in California. Even if we talk on the phone or facetime, I don't wanna be like "Hey, I bought a new expensive watch". Not now, but maybe when I meet them again in person. They don't really know anything about me financially, they don't know how much I earn, etc. They have an idea that I'm doing good financially and earning decent but that's about it. I guess I just want to speak out loud about my purchase and give some kind of update with the nice people around here.

Yes, it's a Speedmaster. It has 2 years factory warranty so it's like I bought it from the boutique.

That's interesting. I've always thought we are doing good in terms of net worth. Maybe I don't have a lot of information about net worth stats and I do have more context about our earnings. We double our net worth last year and we are going to double it again in the next 2 years (to 250k). I believe we can have 1 million net worth by 40 years old.

I started working mid 2011 earning 20k as intern, bump to 35k after 3 months. Wife started working around mid 2014, I believe it was like 25k a year. Around mid 2015, I was at 85k. Fast forward to 2017, 120k, and recently at 145k and my wife at 37k. I expect my earnings to be in 145-160k range in the next 2-3 years. I don't expect my wife earnings to increase a lot.

The only two questionable financial decisiona we made are when we bought 2 brand new cars total of 55k we all know those are depreciating assets.

I have never listed my cars as part of my net worth (nor my watches ) as they are more personal items that don't have investment value. Like you, I'm not selling my watch, and I'll only sell my car if I am living in the streets or decide to trade it for yet another car.

The only things that go on my Net Worth statement are marketable assets of some sort. Metals, stocks, bonds, real estate, and the value of my businesses, which are calculated using a multiple of net operating income (profit).

[TexasHusker]

I'm nitpicking, but it's important. Is the warranty through the dealer or Omega? If you do not have a warranty card stamped and dated by an authorized dealer, then you do not have a factory warranty backed by Omega. This is the risk of a grey market watch. That being said, it isn't a big deal. I have bought many grey market watches and have had no issues.

As far as high end watches, I have a few, but have downsized a lot. If you want to get thrashed, go post on bogleheads.org that you bought a $4k watch. I have owned a few Speedies myself and might get another. I am down to 2 high end watches and my Casio. I wear the Casio the most.

That Speedy is an iconic watch. As iconic as the Rolex Sub. First watch on the moon. Fantastic movement. Classic chrono design. If you hang around watch people, they will tell you the 2 watches to own are a Speedy and a Sub.

Here's what I have bought and sold in the past. The cheapest one was a $10 Casio. The most expensive was a $42,000 A. Lange Sohne:
These are the 2 expensive ones I kept. About $5k each. They are custom pilot watches that have meaning to me personally.

Nice. I owned a GMT Master II for a while and sold it, and every time I think of it, I regret it.

Did you ever delve into the TAGs? I have one, but my gosh the things don't hold their value at all.

[~bs]

meh, different strokes, and all that. $4,000 aint even that much on something you can use every day and for a lifetime if you wish. new iphones are like $1000 and are obsolete after 2 years.

people spend $40,000 on a single night entertainment and think it's normal. Not to mention $20,000 on a piece of jewelry that will devalue instantly to less than your $4,000.

[disneysteve]

new iphones are like $1000 and are obsolete after 2 years.

people spend $40,000 on a single night entertainment and think it's normal. Not to mention $20,000 on a piece of jewelry that will devalue instantly to less than your $4,000.

True, though most of those things aren't impulse purchases. The phone might be in some cases, but I doubt anyone throws a 40K wedding without some significant advance planning.

We've all gone out and spent thousands of dollars on a purchase if we own a car. It's not really the cost that's the topic here.

[~bs]

^
I suppose the 4k watch could be an impulse purchase.. but that's not really the way I read his post though since he always wanted one since he was a kid, watch lasts a lifetime, shopped around and got it at a discount, researched, etc. So i did kind of take it as the cost being the topic.

And to be quite honest, regardless of the time spent planning it, I still think a really expensive wedding to be the more reckless impulsive decision. A "dumb purchase", as the original poster might put it.

[Leo]

My wife and I are very good about it. No worry about it. Thank you all for the response. I kinda feel better now and less buyer's remorse.

[corn18]

Nice. I owned a GMT Master II for a while and sold it, and every time I think of it, I regret it.

Did you ever delve into the TAGs? I have one, but my gosh the things don't hold their value at all.

Never bought a Tag. I have my eye on a US Naval Academy Tag, but haven't pulled the trigger yet. As you mention, buying a new Tag will mean a 50% hit on value. And the used market is soft for Tags.

Rolex holds their value really well. There are a few models that don't, but most are worth the same a year after you buy a new one. And there are certain models that you can sell for more than you pay for a new one. Very hard to find one new at a dealer and some have a 2 year wait. The ceramic Daytona is like that right now.

Audemar Piguet is like that, too. Some AP models are worth 50% more than what you could buy them for at retail. But like Rolex, there is a 3-5 year wait for those models.

A. Lange Sohne, Jaeger le Couteur and IWC take a big hit from retail but then hold their value well. So I bought them used.

The best value for a nice mechanical watch is Citizen and Seiko. $300 will get you a kick butt movement and a nice looking watch. Anything above them is jewelry.

If you really want to gamble, then hit the vintage market. Your dad's 1982 Sub is probably worth $10k+ right now depending on condition and if you have the original box and papers. Some Speedy models are going for $20k. The downside is you could pay $20k for something that is worth $4k.

[~bs]

not a watch guy, but saw this and thought it was cool. for the money though, probably would rather own a rolex. Partially because I am someone who cares about residual value on higher dollar items. I have whiskeys, guns, and other collectibles worth several times what I paid for them. It's way more fun collecting things when they go up in value.

And actually I've had a history of whacking my watches on anything and everything, so expensive watches are kind of out of the question for me.

https://www.hodinkee.com/articles/grand-seiko-spring-drive-snowflake-review