[Group9]

A new boat is a good deal if you have the money to buy it and still have plenty left.

A used boat is a much better deal for most of us. I bought my boat, 20 years old, for $80,000. A new one just like it lists for $250,000 to $275,000. That would have been every penny I had.

With the money I didn't spend on the new boat, I spent about $20,000 upgrading mine and then still had all the rest of the money left to make my cruise really fun.

If I had had a million dollars, I would I have bought the new boat. But, I didn't.

 

[Group9]

All you have to do is watch all of the yachts coming out of Trinity Marine, near where I live, to realize there are a lot of people with a lot of money, who insist on new. They are back-ordered several years, in fact.

One of my friends was the co-captain on a billionaires yacht. To say money was no object was an understatement. Costs just didn't enter the equation, on anything (he spend $30,000 once to have a non-essential part delivered quickly). I'm sure he would say, "Well if a ten million dollar yacht is all you can afford, you should just buy it and be satisfied with it."

Everything is relative.

 

[Group9]

You must be in Nawlins?

No, near the facility in Gulfport.

 

[Group9]

Still, even Trinity had a very difficult time weathering the recession, they were barely hanging on for awhile...

There's a fascinating new book out about the megayacht industry, and Trinity and the build of the yacht LADY LINDA, in particular... GRAND AMBITION, by G Bruce Knecht, a wonderful reporter/writer who also authored THE PROVING GROUND, one of the best books about the Sydney-Hobart disaster a decade ago...

I recommend GRAND AMBITION highly, the book was over too quickly, for me... The people who commission these builds definitely do inhabit a different universe from you and I... However, as is the case with virtually every single one of these boats, she went on the brokerage market pretty much as soon as the owner took possession of her...

I know one of Trinity's yacht orders was canceled because the buyer found out he had lost 1.6 billion when Madoff's ponzi scheme got outed.

You wouldn't know they were having problems to sail by their yard, though.

 

[Group9]

Secretary of State John Kerry commissioned a 7 million dollar yacht. He grew up in a wealthy family. Why should he settle for lesser yacht?

He's "good" rich. He's a Democrat. He can do whatever he wants.

 

[Group9]

The most comprehensive study of millionaires within the United States was done by a University of Georgia professor. He lays it all out in his book, "The Millionaire Next Door"

Contrary to popular belief that you have to invent a new mousetrap to become rich, most millionaires in this country are those who either build or service the mousetraps invented by others. Or, those who provide a service to homeowners.

One guy i know is a roofer. Not only no college degree, but no high school diploma. His company books about 5 million a year in sales. A classic small business. His take, about a million dollars a year. I've got a basement waterproofing guy who does even better. While that income doesn't buy them a house in Bill Gate's neighborhood, it does give them a million dollar net worth.

Wanna hear about my car dealer client, who, starting with one Ford dealership built a network with over a billion dollars in sales today? I didn't think so, but you get the point.

You don't have to invent a better mousetrap or even a previously unimagined one, you just need to be able to compete.

That said, the difference between any of us who haven't gotten rich off an invention and those who have: They took the next step!

It's amazing how easy it is to accumulate a million dollars in assets with the slightest bit of dedication and application of steady work, in this country (we had a cleaning woman at a university near here who shocked many people when she left a huge sum of money to the university when she died). My brother is a partner and CPA in the largest accounting firm in our state and constantly tells me I would be surprised at who some of the wealthiest people in our area are, and some of the people who everyone thinks are wealthy, but are not.

Just take the average smoker, and do some calculations on how much money they would have if they had invested the money they paid for cigarettes over 40 years, to see how even people of modest means could do well if they had the discipline and dedication, and the willingness to make a small sacrifice for it.

 

[Group9]

Any link to the "source" of that analysis?

Try this one. It's an interesting read about wealth in the US.

The Millionaire Next Door: Thomas J. Stanley, William D. Danko: 9780671015206: Amazon.com: Books@@AMEPARAM@@http://ecx.images-amazon.com/images/I/41MJp0YtXsL.@@AMEPARAM@@41MJp0YtXsL

The Millionaire Next Door,
by Thomas J. Stanley , William D. Danko