Expensive Watch at a Young Age

[watchluxus]

Hi everyone!

Thought I would try and get some insights from TRF as many of you seem to be quite successful and forward looking

Basically, I find myself in a very fortunate position and would like to see what others would do in my position. I am currently a student and have no expenses thanks to my very generous parents. Parallel to my studies I have started a job which has me set to net me roughly 40-70K USD/yr.

I have always been a HUGE watch geek (started IG watch page, wrote my dissertation on watches, etc.) and would love to purchase a new watch to add to my collection which currently stands at a 116710LN.

My question is: am I silly if I spend roughly 20K USD on a timepiece at my age, and invest the remaining money ( 20-50K USD) in building up a trading portfolio? I try and justify purchasing a watch as I am truly passionate about watches, but I can't help but feel I am cheating myself. Even though I would still be saving a good amount of money for a student with the purchase, I would only be able to do this thanks to my parents, not myself.

Thank you very much to everyone for reading and I would truly appreciate your thoughts/opinions!

[Andad]

I wish I knew then what I know now....dada..dada...dada...

[Helmi]

Get one used for 6.5k....still pricy but if you need the money you can sell at minimum loss. This way you can justify to your self that the purchase is not a pure luxury-inspired and there is some economic sense

[watchluxus]

Originally Posted by Helmi

Get one used for 6.5k....still pricy but if you need the money you can sell at minimum loss. This way you can justify to your self that the purchase is not a pure luxury-inspired and there is some economic sense

I currently have a GMTIIC, but want to expand the collection

[watchluxus]

Originally Posted by directioneng

I wish I knew then what I know now....dada..dada...dada...

The wonder of compound interest?

[Helmi]

Originally Posted by watchluxus

I currently have a GMTIIC, but want to expand the collection

Sorry I miss understood. Apply the same logic to the new watch. Get a model that have good resale value and get it used. Good luck

[watchluxus]

Originally Posted by Helmi

Sorry I miss understood. Apply the same logic to the new watch. Get a model that have good resale value and get it used. Good luck

That's what I was thinking! Either AP ROO for 19K (heavily discounted) or 116618LB at 20K USD

[1William]

I think that you should get another watch if that is what you want. I would do my research and decide what I wanted and then find it for the best price possible. Buy right and you will not get hurt if you decide to sell or flip. I would not get hung up on the age thing. You earn the money and should spend it as you deem appropriate. Making your own decisions is part of growing up. Good luck.

[watchluxus]

Originally Posted by 1William

I think that you should get another watch if that is what you want. I would do my research and decide what I wanted and then find it for the best price possible. Buy right and you will not get hurt if you decide to sell or flip. I would not get hung up on the age thing. You earn the money and should spend it as you deem appropriate. Making your own decisions is part of growing up. Good luck.

Appreciate the feedback! Of course. I would only buy off of TRF or at an AD heavily discounted in order to have less than 10% if any at all.

[Zakalwe]

Mate if you're a Londoner save for a deposit on a house!

Unless of course your family is so well off and generous that it doesn't matter, in which case enjoy your fortunate position and buy what makes you happy.

[brandrea]

Are you worried about what your parents will think?

[cop414]

As you're in this position because of your parents and not yourself I'd pay them back the money that they've paid and only then would I be spending money on any luxury items for myself. Just my 2 cents.

[watchluxus]

Hi mate! Thanks for your post. I am just studying in London :) I will move back home to Switzerland or take my business full-time to Dubai post Master's.

[MrInternational]

My recommendation is to take advantage of compounding interest, buy a used watch if that will satisfy you. Otherwise wait to purchase. Rule of 72 - at 5% interest you'll double every 14 years. This your $20K will become something like $160K by your 60s. That's a lot of watch money. Obviously you should enjoy life now as well. I guess balance is my message. Spending a third or half of your annual income on a watch doesn't make a lot of sense to me even if your expenses are low (right now). Spending that much on a watch at a very young age is quite extravagant. Cash is important in life. Build up a storehouse now while you can. Get the momentum really going. Buy assets (things that put money in your pocket without you trading your time for the money, like a job). The most powerful concept in investing is not portfolio composition, asset diversification, fancy trading techniques, or even getting high annual returns. It's time. This is the most precious commodity in so many ways and investing it's the magic. Congratulations on this being your problem to solve! Good luck with your decision.


Sent from my iPhone using Tapatalk

[watchluxus]

I do think that is the main problem. My parents are simple people with simple tastes.

[watchluxus]

Originally Posted by cop414

As you're in this position because of your parents and not yourself I'd pay them back the money that they've paid and only then would I be spending money on any luxury items for myself. Just my 2 cents.

I will try and tell them that, but it is quite unlikely that they would accept. The reason they support me even with my income is they want me to build financial stability. I guess the question is how much would a significant watch purchase hinder me in having financial responsibility...

[tyler1980]

unless you are actually going to save, buy the watch.

After college i spent money on all kinds of stuff other than watches and i don't have any of that stuff today as it was all either disposable goods or cars and those get old and have to be replaced. At least with a nice watch you will probably always have it so its not a bad choice necessarily.

[cop414]

I guess that's a question that only you can answer. The very fact that you are questioning the purchase would tell me that you should put that money into your investments for now. You're in a very lucky and envious position my friend!

[watchluxus]

[QUOTE=MrInternational;7766106]My recommendation is to take advantage of compounding interest, buy a used watch if that will satisfy you. Otherwise wait to purchase. Rule of 72 - at 5% interest you'll double every 14 years. This your $20K will become something like $160K by your 60s. That's a lot of watch money. Obviously you should enjoy life now as well. I guess balance is my message. Spending a third or half of your annual income on a watch doesn't make a lot of sense to me even if your expenses are low (right now). Spending that much on a watch at a very young age is quite extravagant. Cash is important in life. Build up a storehouse now while you can. Get the momentum really going. Buy assets (things that put money in your pocket without you trading your time for the money, like a job). The most powerful concept in investing is not portfolio composition, asset diversification, fancy trading techniques, or even getting high annual returns. It's time. This is the most precious commodity in so many ways and investing it's the magic. Congratulations on this being your problem to solve! Good luck with your decision.

Thank you very much for your reply I can't help but agree with you, I guess as a 21yr I am just quite inclined to want to take advantage of my fortunate position by buying into items I really want.

You do make an excellent point though. Rather than seeing the watch as an asset that is unlikely to depreciate (given I buy at the right price) it is more about the opportunity cost of what could be down the line in terms of cash...

[watchluxus]

Originally Posted by tyler1980

unless you are actually going to save, buy the watch.

After college i spent money on all kinds of stuff other than watches and i don't have any of that stuff today as it was all either disposable goods or cars and those get old and have to be replaced. At least with a nice watch you will probably always have it so its not a bad choice necessarily.

I guess the good thing is that I am very conscience in terms of spending. At least I would be spending it on something unlikely to depr.

However, as I am not really someone that buys into clothing brands, cars etc. if the money were not spent on a watch, it would all go straight to the bank/Charles Schwab etc.

Thank you

[watchluxus]

Originally Posted by cop414

I guess that's a question that only you can answer. The very fact that you are questioning the purchase would tell me that you should put that money into your investments for now. You're in a very lucky and envious position my friend!

That is what I keep telling myself It isn't easy with so many enablers around though!

Thank you for your reply! I do really consider myself lucky, which is why I am trying to seek advice now, rather than after it has all been spent

[watchluxus]

Thank you very much everyone for their valuable insight!

[DLRIDES]

Originally Posted by cop414

As you're in this position because of your parents and not yourself I'd pay them back the money that they've paid and only then would I be spending money on any luxury items for myself. Just my 2 cents.

As a parent, I couldn't agree more !

Your first responsibility is to the ones who provided to you.

[Chuckred]

Originally Posted by watchluxus

I will try and tell them that, but it is quite unlikely that they would accept. The reason they support me even with my income is they want me to build financial stability. I guess the question is how much would a significant watch purchase hinder me in having financial responsibility...

if they are supporting you to help gain financial stability, I would think a 20k watch would disappoint them and show that their support is being taken for granted. I suggest investing or using the $s to become stable. But, I only know how I'd feel if you were my kid...

[watchluxus]

Originally Posted by DLRIDES

As a parent, I couldn't agree more !

Your first responsibility is to the ones who provided to you.

I agree completely! However, due to the upbringing I had because of my father's job of moving every three years, and due to general life achievements (fingers crossed they continue!). They are always very hesitant to accept "thank you's".

Regardless, as my father has just recently retired and now that I have my OWN cash. I was thinking of getting them a week getaway to Amalfi in Italy as they are based in Switzerland. Any other recommendations welcome!

[greggsiam]

Why not buy one from David SW for $7-8k?

That gets you the watch and shows some financial maturity to your parents vs buying new from the AD.

[cop414]

Originally Posted by watchluxus

I agree completely! However, due to the upbringing I had because of my father's job of moving every three years, and due to general life achievements (fingers crossed they continue!). They are always very hesitant to accept "thank you's".

Regardless, as my father has just recently retired and now that I have my OWN cash. I was thinking of getting them a week getaway to Amalfi in Italy as they are based in Switzerland. Any other recommendations welcome!

An excellent idea
Back to the watch purchase, I guess that there are many others items that you could spend your money on that would make no sense. With another watch purchase you would be able to recoupe most if not all of the money spent if you make the initial purchase smartly. An investment that you can wear and appreciate daily,,, hmmmm,,, we are a bunch of enablers here aren't we!

[watchluxus]

Originally Posted by cop414

An excellent idea
Back to the watch purchase, I guess that there are many others items that you could spend your money on that would make no sense. With another watch purchase you would be able to recoupe most if not all of the money spent if you make the initial purchase smartly. An investment that you can wear and appreciate daily,,, hmmmm,,, we are a bunch of enablers here aren't we!

Enablers... tell me about it Don't go to the AP sub-forum!!! It's a trap

[AK797]

I started trading my own stocks/share account when I was a teenager and through University so I can identify with you, you young blade! What I would do is put $50K into a trading account and then if you make your target say 10 or 20% in 6 months or a year, then I would buy a Rolex from that.

[beshannon]

IMHO that amount is far out of proportion to your overall salary and net worth.

Save for your future, plenty of great watches for 1/4th of your budget.