$4 Million Net Worth Caller Asks Dave Ramsey: Is a $400,000 Boat Too Expensive?

A caller with a $4 million net worth and $250,000 annual income inquired about purchasing a $400,000 boat on Ramsey Everyday Millionaires. Ramsey approved the purchase, stating that the boat represents only 10% of the caller's net worth, not a retirement-wrecking share. The boat would reduce sustainable annual withdrawals from $160,000 to $144,000, but since the caller is in a high net worth phase, the half-income rule does not apply.

Using a 4% withdrawal rate, the $400,000 boat still allows for $144,000 of annual spending. The caller's income is sufficient to cover the boat's costs, including annual operating expenses estimated at 10% of the purchase price. The broader context includes concerns about a softening market and rising inflation, but the caller's financial situation supports the purchase.