Working in the superyacht industry provides a special lifestyle.
You live and work on board, you have substantial disposable income and you get to travel a lot.
But the lifestyle also has its personal and financial challenges.
You don’t have job security. It can be stressful working and living with your colleagues, and, most of all, you need to provide for your financial future. The boat won’t do this and your working life in yachting is likely not to be more than 10 years. This presents financial challenges unique to superyacht crew members. To overcome these financial challenges, superyacht crew financial planning, in conjunction with life planning, is vital.
The nature of superyacht employment
Employment on superyachts can be seasonal or full time. And although you may have a permanent contract, you can still be fired at any time.
You don’t have long-term job security, so this can lead to income fluctuations.
To combat these seasonal work patterns and income fluctuations, you must build an emergency cash fund you can access whenever you need it, and your financial planning must include investments that can be paused or accessed as necessary.
As superyacht crew, you will be travelling to many different countries, but the major currencies used will generally be either USD or Euro.
Most boats also pay in either USD or Euro, so it is sensible to have international bank
accounts in both currencies. Two banks to look at are Standard Bank International Isle of Man and their Seafarer account or Lloyds International Isle of Man. Both banks specialise in working ex-patriates, just like you. You may also need accounts in Rand/AUD/GBP, if that is your home-country currency.
Many superyacht crew also have an account provided by one of the fintechs like WISE or Revolut, which are completely online and specialise in cost-effective currency conversion and fast transfers.
When it comes to superyacht crew financial planning and investment for yacht crew, it is advisable, if you can, to have investments in both USD and Euro to diversify as much as possible.
Your major expense that could be impacted by currency conversion rates is your mortgage.
For example, you may have a mortgage in GBP, but be paid in Euro. It is very important that you ensure you have a sufficient financial margin to cope with currency fluctuations.
Yachting Financial Solutions are not tax advisors and we don’t give tax advice, but we should be able to point you in the direction of an expert in the field.
Retirement, financial and pension planning
Most boats don’t provide conventional pension schemes. So proactive retirement/financial planning is essential for superyacht crew.
Yachting Financial Solutions can help you with this. We are long-term financial/life planners. It is our area of expertise.
A generation ago there would have been limited access to consistent financial advice, due to the mobile nature of the job. This is no longer the case, with Zoom/Microsoft Teams, you can now keep in touch with your financial planner wherever you are.
You may think you don’t need any help and that’s OK. But do be aware of ill-advised or impulsive investments. Don’t put all your investment eggs in one basket. Just because everyone you know is investing in something doesn’t mean it’s a good idea. Do your research and approach cautiously.
Costly lifestyle temptations
It is very easy to get sucked into the ‘Golden Bubble’ of yachting and start overspending. But always remember, despite all the luxury around you, you aren’t the owner of the boat. You just work there and you work hard.
No one is saying you shouldn’t have treats, but if you want to have you own ideal lifestyle in the future, you are going to have to save for it. And your yachting career won’t last forever. So the sooner you start, the better.
The key of any successful career in superyachting is how much of your money do you save and keep. Anyone can spend the lot!
Access to banking and financial services
This used to be an issue. But online banking, including International bank accounts especially for yacht crew, and currency exchange accounts have made managing superyacht crew financial planning so much easier, wherever you are.
However, you still need to get going. If you don’t start your financial plan, you’ll never finish either.
Your first step is to look for a financial planner who specialises in helping superyacht crew and book an online discovery call.
How to overcome superyacht crew financial challenges
The best strategies to overcome the challenges to superyacht crew financial planning are:
- Find specialised advice tailored to superyacht crew.
- Ensure all your banking and investments can accessed online.
- Always continue your financial education and awareness.
The value of purpose-driven investment
The first step in any superyacht crew financial planning is working out your life goals.
Once you have decided these, then your financial planning and investments will fall into
place. Giving yourself life goals to aim for is far more motivating than just building money.
Your goals may change over time and probably will, but regular reviews of your financial/life plan and investments should keep you ‘on track’.
Your next step
Yachting is probably the best opportunity most crew will have to build a completely life-changing future, where you will be in the driving seat of your life.
Don’t waste this chance.
Contact Yachting Financial Solutions and book a discovery call now. We can help you achieve your goals, by working with you. We will provide continuous one-to-one, tailored advice, mentoring and solutions, amply supported by e-books, videos and other resources.