Could DINK work in Superyachting? - United Advisers Marine

2nd Nov 2019

Could DINK work in Superyachting?

DINK isn’t used very often in the Superyacht industry. Partly due to the lack of couples positions and also because it is a relatively new term. DINK stands for “dual income no kids” and has become a key term in the world of investing.

This is because DINK’s have, on average, greater investment affordability. Making them frequently targeted by marketing due to their large disposable income. But, there is another approach, many modern DINK households are instead taking advantage of their fortunate financial position to reach financial independence sooner rather than later.

Within the Superyacht industry a couple earning a good salary with next to no expenses is the perfect situation. Saving one salary should be entirely possible creating a pathway to financial stability in the future both inside and outside the industry.

take the time to talk

Money can be a taboo topic amongst couples as talking about it can stir up intense emotions. Depending on your financial education and upbringing, it might even be considered impolite. However, the more you talk about money and finances, the chances are, the better your relationship will be.

Another advantage of being completely honest with each other about money is that you will each be 100% clear of what accounts and investments exist. We often speak with couples in which one person controls all of their finances. That’s a personal choice and not necessarily an issue as long as you both know where your money is and how to access it.

Don’t upgrade your lifestyle

A common trap when you have a large disposable income is a lifestyle upgrade. This means you don’t save the respective increases, and therefore don’t increase your wealth. Instead, you spend upwards and enjoy the process.

As a Superyachting DINK, you are part of a group that has the biggest propensity to save and explore more investment opportunities. Perhaps you could even live off one income and save the other. This isn’t a solution for every couple, but it can be a great way of rapidly growing your personal wealth.

Whatever you decide, the most important thing is to have a financial plan. Carefully managing a dual income according to your documented plan can allow you the financial freedom to pursue the lifestyle you choose as a couple.

Team work

This is about saving and building wealth as a couple. So make sure you check in with each other and that plans haven’t changed.

When you are confronted with a life change as a couple, such as a move on shore, promotion, or inheritance, you need to talk about the impact of that change on your joint finances. A documented financial plan is meant to reflect the views of all decision-makers. A financial plan isn’t a static document; you need to review it regularly and together.

Plan to save and spend

You might be saving a large percentage of your income, but you still want to be able to enjoy the fruits of your hard work! This is why it is important to plan in rewards so that you continue to enjoy saving.

A good savings plan should satisfy our desire to live well today with the desire to have a comfortable financial future.

With a double income and no kids, you have an incredible opportunity to create wealth. The key to building wealth is investing and the earlier you start, the more time your money has to grow.

Review opportunities carefully

Before committing to any sort of investment plan, you need to understand exactly how much you have available to invest and how much risk you’re willing to take. For example, would you be keen to sell your stocks the minute the market dips or would you be willing to hold on and play the long game? Couples with a higher disposable income can typically afford to take greater risks with their investments, but this might not be the case if you are planning on returning on shore and purchasing property for example.

If you decude to invest, it will be important to maintain a diversified portfolio. Typically this would be mix of stocks, fixed income and commodities. These different assets react differently to the same economic event, so when the value of one asset decreases, the value of another increases. This is your best defence against a financial crisis or global pandemic.

Once you have in place a long-term savings and investment plan that suits your risk tolerance, look at opportunities for investing any lump sum amounts you both receive, such as bonuses, tax rebates or an inheritance. Also ensure you are making the most of tax-free savings and investments.

To help uncover such opportunities, it’s best to speak with a financial adviser. They can work with you to determine the most tax-advantageous savings and investments plans for your situation and calculate exactly how much you can invest to build your wealth without negatively impacting your Superyacht DINK lifestyle.

Author

Oliver Maher