Bay Yacht Agency Annapolis MD

The Perfect Storm Of opportunity!

Sometimes elements in the market come together to present a perfect opportunity. Those events are occurring now in the marine industry. Here's what's happening and how you can take advantage of the Perfect Storm!
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Perfect Storm

INDEX this page:  

> Taking advantage of Exchange rates

> How to use inflation to your advantage

> What about the future of interest rates and taxes?

> So, here's the good news... How to use what you now know.

>Alternatives to acting now? Sure...

      Wait until later--Inflation adjusted purchasing power!

> Own in 1/4 the time for 1/4 the cost--additional ways to leverage your investment and time.

> Finally, a perfect thought that may change your life (It has nothing--and everything--to do with boats!)

 

Other Links of interest

Looking for a used boat. Review our list of potential trades.

The least expensive way to own? Our Boat-as-a-business program. New or used.

Brokerage boats--search the list of 70,000 over 34' boats.

List your existing boat for sale.

Don't use the Seller's broker--get your own Buyer's Broker!

 

Contact BYA live...

410-263-2311

 

 

 

The perfect storm of opportunity...

  • Low interest rates

  • Strong dollar to Euro

  • Excellent timing: Pre-inflation time period

  • If taxes go up, use our Boat-As-A-Business plan to convert taxes into even more equity. FLASH: The 'Hiring Incentives to Restore Employment Act' of 2010 INCREASES THE 179 EXPENSE ALLOWANCE TO $250,000 FOR 2010--You are probably qualified!

These coincidental events result in a low purchase price and a chance to lock in financing at a low rate now, while paying your loan off in devalued dollars later. Get your money out of risky investments and put it in a boat that will go up in value as the economy experiences more and more inflation.

 

I interviewed business people and experts and here's what they are saying and how you can take advantage of the situation...

 

First off... Should you consider this information...

Do you want to own a boat this year? Or in the next 5 years?

If your answer is no, skip this article and have a nice day.

If yes, here is why you have a unique opportunity if you act now.

Double whammyInflation and taxes will wipe out your boating nest egg if you sit back and watch events unfold. Much more below.

 

Know why the rich are so rich? Their secret is that they look at the same information that you and I do, but rather than wait to see what is going to happen--they take action. Before the crowd. They don't wait until the stock market is actually going down, they sell when they see the signs. They don't wait until the stock market peaks and then buy--they buy at the bottom--often before it even starts back up.

 

Now, you can act the way the successful people and the wealthy do--by acting on good information. Here's good information, put together by far wiser experts than me--these are the realities. And, keep in mind, they only matter if you intend to have a boat in the next 5 years. If you wait 6 months, a year or 5 years to see what happens-you will pay dearly. I'll show you exactly why. What happens to your boating nest egg if you wait. Here are the answers to taking advantage of this perfect storm of opportunity.

 

1. Take advantage of currency exchange rates...

  Euro value

We represent two lines of boats which are the largest builders in the world for Monohulls (Jeanneau) and catamarans (Fountaine Pajot). Both of these boats are priced based on the Euro.

 Event (1) for the perfect storm of opportunity
The Euro is at a recent historical low and both of our manufacturers have priced their boats to reflect this. However, the Euro is about to go up, just as Euro forcastthe Fed starts printing money and it's value goes down! (Source)

2. Inflation will make your money worth less...

Inflation-printing moneyWith all of the money that the Fed owes for the bailouts and entitlement programs--there is no way that they can cover the debt--

Once we were on that pesky gold standard. But now, the Fed just monitorizes the debt (that's short for prints money when it needs it)

"What?  That's like printing an IOU and putting it in your right pocket and then transferring it to your left pocket and saying oh look now I have all this money... That is how they can print money out of thin air.  That is true monetary inflation which should result in price inflation." By Tim McMahon, Editor InflationData.com (You should read the entire article and associated articles that really explain in layman's terms where we are, and how we got there as well as offering strategies--besides buying a boat--to improve your position.)

Tied to this, will be the third element of the Storm of Opportunity...

 

3. Higher interest rates and taxes will cut into your buying power later...

When inflation goes up--interest rates go up, and taxes are pushed to the limit. Remember in the late 70's and early 80's interest rates got up to over 20% for boats! Things were not near as difficult then, as they are now. For more on this phenomenon, please check out this site.

 

O.K. So what's the good news?

Join the shrewd wealthy class. If you want a boat and have funds available now for the downpayment...

 

1. You use your downpayment to invest in a boat. If you invest it in stocks or other investments there is considerable risk with the market forces at work. No matter how you "hold" it, it will be worth less as inflation and taxes takes more and more of a bight out of your boating nest egg.

 

2.You are leveraging your relatively high value dollar against the lower value Euro! (More boat, for less money--and much less than it will be later!)

 

3.By acting now, you lock in current low interest rates, while paying off the loan with cheaper and cheaper dollars later--you're on the right side of the fence!

 

4. Finally, you have the boat that you want anyway. As inflation increases, your boats value rises with the flood tide. I had a client in the early 90's who had a boat on order and had paid his deposit to us (0% interest). He said this was the best investment he made, because all of his other investments lost money!

 

If the s_ _ _  really hits the fan, you can always take off in your boat!

Call us today to find out about the huge savings available on a new Jeanneau or Fountaine Pajot right now. 410-263-2311 or review the boats on our web site. Monohulls (Jeanneau) and catamarans (Fountaine Pajot)

 

Eric Smith, President, Bay Yacht Agency 410-263-2311 X222 (direct extension) or esmith@bayacht.com or Skype: bya269
 

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Alternatives? Sure...

1. What if I wait and just hold my downpayment for now?

Sounds reasonable. So let's see what happens.

Suppose you have $100,000 to invest as your 20% downpayment. Taking into consideration taxes and inflation, and assuming a very low inflation rate compared to our discussion, here's what would happen. Scroll down for a comparison with higher inflation--remember it could go to 20% or more! (Try your own numbers. Click here) Inflation adjusted purchasing power!

Are you ahead by saving and waiting?

Investing an initial amount of $100,000 with regular monthly contributions of $0 could be worth $146,933 after 5 years. Taxes and inflation could reduce the value of the investment to $103,510.

Results Summary
Amount currently invested: $100,000
Monthly contributions: $0
Years: 5
Hypothetical annual rate of return: 8.00%
Federal income tax rate: 35.00%
State income tax rate: 6.00%
Expected inflation rate: 4.00%
Total taxable investment balance after 5 years: $146,933
Investment balance after taxes: $125,935
Investment value after taxes and inflation: $103,510

 

Same calculation with 8% inflation:

 

Investing an initial amount of $100,000 with regular monthly contributions of $0 could be worth $146,933 after 5 years. Taxes and inflation could reduce the value of the investment to $85,710. (ouch!)

Results Summary
Amount currently invested: $100,000
Monthly contributions: $0
Years: 5
Hypothetical annual rate of return: 8.00%
Federal income tax rate: 35.00%
State income tax rate: 6.00%
Expected inflation rate: 8.00%
Total taxable investment balance after 5 years: $146,933
Investment balance after taxes: $125,935
Investment value after taxes and inflation: $85,710

Investment results by year


Year
Total investment balance Balance after taxes Value after taxes and inflation
1 $108,000 $104,720 $96,963
2 $116,640 $109,663 $94,018
3 $125,971 $114,839 $91,163
4 $136,049 $120,259 $88,394
5 $146,933 $125,935 $85,710

 

(Try your own numbers. Click here) Inflation adjusted purchasing power!

 

2. What if you placed your boat in our Boat-As-A-Business™ program?

For your information, I am the owner of BYA and started the program back in the 70's. Since then, I have helped over 690 people successfully set their boat up as a business where tax advantages and income reduced or eliminated their costs and they had their boat professionally maintained as a part of the package so they could use it care-free as often as they like.

 

When combined with the economic facts of life that we are currently faced with--this may be your best, no-risk approach to having your boat and weathering the storm--truly taking advantage of the Perfect Storm of Opportunity! FLASH: The 'Hiring Incentives to Restore Employment Act' of 2010 INCREASES THE 179 EXPENSE ALLOWANCE TO $250,000 FOR 2010--You are probably qualified!

I don't know if this program would work for you or not. But I would welcome an opportunity to show you how this could work, specifically, for you. Could you please contact me to set up a time when we could spend about 10-20 minutes together by phone, or even set up an appointment at my office? It would help tremendously, and I could give you very detailed information, if you would fill out our request for information form. You will find it at: http://www.bayacht.com/aaa/nl-artic/Confidentiallity.htm

 

To just learn more about the program please go to: www.bayacht.com/invest.htm or watch a short video clip here.

 

Thanks for listening. I'll leave you with a perfect thought-- If others, or your less than adventurous soul are discouraging you from living your dream...

 

"For the past 33 years, I have looked in the mirror every morning and asked myself: "If today were the last day of my life, would I want to do what I am about to do today?" And whenever the answer has been "No" for too many days in a row, I know I need to change something…almost everything--all external expectations, all pride, all fear of embarrassment or failure--these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose."--STEVE JOBS, college dropout and CEO of Apple Computer, Stanford University Commencement, 2005

And finally, always remember "If you want better answers, Ask better questions!" Tony Robbins. As a bonus, here's a link to his short video on this subject.

Are you going to act, or sit on the sidelines? The boating industry may never again find itself at the center of this Perfect storm of opportunity. But it will mean nothing unless you act now. Pick up the phone and call, or email me today.

Eric Smith, President, Bay Yacht Agency 410-263-2311 X222 (direct extension) or esmith@bayacht.com or Skype: bya269

 

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