How will I ever be able to afford a yacht?
Written by Carl Turner on June 02, 2014.
There are many questions I get asked by my clients – ‘will I have enough to live off when I retire?’, ‘how on earth will I be able to afford a university education for my children?’ - but ‘how will I ever be able to afford a yacht?’ is up there as one of the most interesting. To be honest, this particular query has cropped up just once in my ten years in financial services however, just like the proverbial genie, my clients’ wishes are my command so I rose to the challenge and set about working out how to achieve this goal.
Now there are yachts and there are yachts. The Russian billionaire and Chelsea FC owner, Roman Abramovich’s superyacht, Eclipse allegedly boasts 24 bedrooms, mini-submarine, two helipads, two swimming pools, disco, missile defence system and an anti-paparazzi laser shield (whatever that is!). It is reported to be worth $1 billion, not to mention running costs of up to $75 million per year. Thankfully, my client was looking for something a little more modest, but even small yachts don’t come cheap so we needed to work out how to save several hundred thousand dollars.
The first step in any financial planning problem is working out the target. Once you know that, you can plot a route towards it. After crunching some numbers, I worked out that in 12 years, my client will be ordering his yacht and embarking on his round-the-world adventure. And I will be there at the marina to wave him off, delighted that I have been able to help him make a dream come true.
Ambitions come in many shapes and sizes and my job, in a nutshell is to help my clients finance them, whatever they may be. Often the focus is on far less glamorous, but possibly more important ambitions than owning a yacht, such as saving for a comfortable retirement or to put children through university. Whilst most people are clear on what their financial objectives are, they can be unsure as to how to achieve them. That’s where I come in. Working out how to meet those aims is my job, and being the genie in the bottle who makes wishes come true can be very satisfying indeed.