How You Can Make Boat Ownership a Breeze
We all have goals and dreams for our lifestyle. When you are strategic and smart about your financial investments and portfolios, you can live those dreams you have for your life. It is perfectly fine to put some fun into your financial portfolio, as long as you have a plan and a strategy. You’ll also be creating a lifetime of memories!
When it comes to purchasing a luxury marine craft such as a yacht or offshore powerboat, it’s important to ensure that you understand all the implications that come with boat ownership before you dive in. Here are some tips to consider:
- Discuss the boat purchase, timing and planned use with your advisor to address your unique financial situation. Share how you plan to use the boat, and how long you plan to own the boat so it can be incorporated into your portfolio plan.
- Get the right value. New boats have an obvious value, but pre-owned boats can be more difficult. Use an accredited appraiser who can help you identify potential problems or repairs.
- Resale value of boats. Like a car, we all like to upgrade or trade for a new or improved car. Same holds true for boats. When purchasing a boat be aware of its resale value. Two of the best are Yellowfin and Boston Whalers.** Do your homework before making a sizable investment.
- Be mindful of taxes. There are many tax guidelines, regulations, clauses and details for taxes. A boat buyer needs to be educated on the relevant rules for their state and regulations. Sometimes boats can qualify as second homes or business expenses and have effects on your tax returns. Let a trusted advisor do the research for you.
- Ownership structure. A boat could be purchased as a separate LLC, trust, and even have a preplanned state settlement process. All these ownerships structures can also affect insurance coverage.
Jeffrey LaBelle is a Florida based Investment Advisor Representative whose practice offers solutions for focused risk management, institutional style portfolio management, and tax- planning services. His team offers clients a fact-based, conservative strategy approach to preserving capital and investing wisely in an ever-changing world.
For more information contact Gulf Coast Wealth Advisors.
*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
** https://www.boats.com/boat-buyers-guide/best-boat-brands/#.W3xRlNhKi1s and https://www.saltwaterexperience.com/blog/2015/2/9/question-yellowfin-24-bay-best-bay-boat