Tax-Smart Investing for Maritime Professionals: Why Mariners Need a Different Financial Playbook

Imagine you’ve just thrown your sea bag in the rack and started a three-month hitch aboard a tanker running from Beaumont to Singapore. You’re working day watch 0600 to 1800 and ops have been nonstop since you cleared the breakwater. 

One day, during a quick break on the fantail, you hear the 2nd Mate talking about new tariffs triggering a global market nosedive. Everyone’s got an opinion. But you’re a long-term investor as you have been dollar-cost averaging into the S&P 500 since you were sailing as a 3rd. A salty old captain once told you to, “Just buy the index, ride the waves, and don’t panic.” It’s advice that’s served you well.

But this time is different.

A friend I respect back home mentioned tax loss harvesting—a strategy where you sell an underwater investment in your after tax brokerage account, lock in the loss to offset up to $3,000 of income each year and squirrel away the rest to minimize future capital gains, then buy something similar (but not “substantially identical,” per IRS rules). Done right, it can cut your tax bill by thousands or hundreds of thousands over time.

The problem? You’re underway, slammed with cargo ops, maintenance and port calls. Your window to make those trades is during U.S. market hours, but you’re on watch or asleep when the bell rings. Not to mention no Starlink yet, just patchy email when the SAT-C decides to cooperate. By the time you can get a signal and squeeze in a few trades, the market’s rebounded 18%. You missed your shot to harvest losses—and with it, the tax savings.

Sound familiar?

This is the kind of scenario we hear all the time from mariners—people whose schedules, cash flow, and lifestyle don’t match the traditional financial framework. Whether you’re bluewater, brownwater, offshore, or shoreside in marine logistics, the rules for building wealth and planning for retirement have to adapt to your world—not the other way around.

As one of our clients, a Chief Engineer, once put it:

“We live our lives in chunks. We get paid in chunks, we spend in chunks, we take vacations in chunks, and we invest in chunks. The way we live is entirely different from our friends and families’ 9:00 to 5:00 shoreside jobs.”

And he’s absolutely right. Your financial strategy needs to reflect this.

Here’s how our mariner clients think differently when it comes to finances and some solutions to their unique situations:

1. Chunk-Based Cash Flow Planning

Mariners don’t get paid every other Friday like most folks. You might get a few big checks during your hitch—followed by nothing for months except when you take vacation pay. That means your spending, saving, and investing needs to be planned around “chunk-based cash flow.” 

Set up automatic transfers during your hitch into dedicated sub-accounts: emergency fund, investments, future travel, even taxes if you’re a 1099 contractor or your job doesn’t take out for state income taxes. Then treat what’s left like your paycheck for the time you’re off the ship.

2. Autopilot Investment Management

You won’t always have access to Wi-Fi or real-time data while offshore. That’s why mariners benefit from an investment strategy that runs on autopilot, but with guardrails. Think asset allocation and model portfolios with pre-set rebalancing rules and yes—tax loss harvesting protocols with advisor oversight.

A great advisor can implement this for you and make trades on your behalf, so you’re not trying to log into your investment account while rolling through 8-meter swells off the coast of Africa.

3. Tax Customization for Non-Traditional Earners

Mariners often get hit hard by taxes because their income can spike in certain years, especially with overtime or hazard pay. But there are ways to smooth this out:

• Tax loss harvesting – like in our earlier example
• Maxing out pre-tax retirement accounts – while you’re earning
• HSA’s – when on a high-deductible healthcare plan
• Roth IRA conversions – during slow years, sabbaticals, or while receiving tax free combat zone pay
• Qualified Business Income (QBI) deductions – for contractors working under an LLC or S-Corp structure

Final Thoughts

People in the maritime industry live a unique life. The open sea may offer freedom, but it also brings constraints, especially when it comes to personal finances. The traditional advice written for cubicle dwellers doesn’t translate out here.

You get paid in chunks. You live in chunks. So your financial plan should be designed in chunks—flexible, automated, tax-smart, and built around your schedule, not someone else’s.

If you’re tired of trying to jam a square peg into a round hole when it comes to managing your money wisely, it might be time to talk to someone who speaks your language and knows your world.

Here at Shoreside Wealth Management we are a financial team that specializes in the Maritime Industry and the unique challenges our maritime clients face. Reach out to us at Shoreside Wealth Management for fair winds, a fiduciary relationship and a well-charted course toward tax smart financial planning. We want to help Seafarers and add value, so reach out today.

www.shoresidewealth.com 

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. 

Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets. A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. 

Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply. 

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.