Toronto Blue Jays fans who travelled to Los Angeles for Game 3 of the World Series got their money's worth after an 18-inning classic. But should the average client splurge on such events?Barbara Davidson/The Globe and Mail
As a lifelong Toronto Blue Jays fan, Adam Fisch understands the lure of live sporting events.
Mr. Fisch, relationship manager at Our Family Office Inc. in Toronto, decided to purchase a pair of tickets for Game 1 of the Fall Classic between the Jays and the Los Angeles Dodgers.
“My dad took me to a World Series game when I was nine in 1992, and now I got to do the same with my own kid. Full circle,” he wrote on a LinkedIn post. “There are moments from the game I will remember forever, and I know my son will too. What’s that worth?”
Mr. Fisch called the splurge “an absolute fortune, and a way more irresponsible expense than I typically make.”
Still, the Jays haven’t played in the World Series in 32 years. Mr. Fisch could also afford the tickets easily and emphasized the importance of using money as a tool to make memories.
But are once-in-a-lifetime events, such as World Series tickets, worth the splurge to the average client?
Advisors say it depends. Unlike popular concerts, which are often announced a year in advance, clients may find out about sports playoff tickets a week or days before the event, which means decisions must be made quickly, says Zael Miransky, president and certified financial planner at MCO Wealth in Richmond Hill, Ont.
It comes down to how much sleep the client is going to lose over the price, he says. “Some will experience next to no lifestyle impact.”
While many advisors have affluent clients who don’t need to think twice about spending on such luxuries, other clients may need pointers on where to draw the line.
“The worst thing you can do is borrow money or spend money that was set aside for a critical purchase, and then [convince yourself you’ll] just figure it out later,” Mr. Fisch says.
He notes that any splurge comes with trade-offs to a person’s budget.
“They may have to put off a planned trip or change their lifestyle for a few months,” he says. “It’s up to the individual whether those sacrifices are worth it.”
For clients on the fence about big-ticket purchases, Mr. Miransky frames the question this way: “Where is the money coming from, and what will you give up to afford it?”
“That’s the cost-benefit analysis I give to people who want to spend money on something quite lavish,” he says. “It’s okay to spend money on what you want, but how much longer are you prepared to work to make that money back? The answer varies for the individual.”
For example, someone who is laser-focused on retiring early may have to work longer if they spend big to take part in an expensive experience.
“It’s not how much you spent today, but how early you can retire tomorrow,” Mr. Miransky says. “The extra weeks of work – are you willing to put that in to take in that experience?”