05.12.26 Ask An Advisor With Wes Moss

In a special "Ask An Advisor" edition, Clark Howard and Wes Moss field listener questions on personal finance, focusing on lifestyle spending like boats, Roth versus traditional retirement accounts, HSAs, and backdoor Roth strategies for high earners. They emphasize tradeoffs between current enjoyment, tax implications, and long-term security.

Boats: Pure Lifestyle, Not Investment

Emmanuel, 47, with $625,000 net worth, maxed retirement accounts, and $2,000 monthly surplus cash flow, asks if buying a boat ever makes financial sense. Both advisors agree it's strictly a discretionary purchase—a depreciating "pleasure craft" with no investment value. Clark shares buying a used $85,000 Tri-Toon for $18,000, noting boats lose value faster than cars; the original owner absorbed massive depreciation. Wes stresses even used boats continue depreciating and introduces "price per use" (PPU): a $25,000 used boat used 50 times costs $500 per outing, far higher than jeans at 10 cents per wear. They recommend renting first to test interest—many buy boats or RVs expecting frequent use but rarely follow through (e.g., a $700,000 RV used once). At Emmanuel's age, prioritize boosting retirement savings over diverting funds.