How wealthy horse owners finance their passion and potentially earn millions
Reported by CNBC · May 1 at 6:00 AM · Summary by Hoofdeck
A private banker at Bank of America, who specializes in equestrian clients in Nashville, describes how wealthy horse owners typically fund their purchases. Clients usually borrow against marketable securities instead of selling assets, since banks won't accept horses as collateral. The article also notes that stud fees can outpace race winnings for top horses.
Background
Thoroughbred ownership is often treated as a passion asset, with returns that depend heavily on racing results, breeding demand and the animal's health. Owners commonly weigh purchase prices, annual upkeep and the long working life of a horse, which can run 25 to 30 years, against possible income.
Why it matters
Costs and financing choices shape how long owners can keep a horse and how well they can plan for its care.
What you can do
If you are planning a major horse purchase or setting up long-term care, talk with a financial advisor and your veterinarian about realistic yearly costs.
Written by Hoofdeck from the report by CNBC. Background is general information, not advice about your horse; if you are worried, call your vet.