Tuesday, May 14, 2019

Collecting Or Investing

If you grew up in the 80s (or even the 50s, 60s, or 70s) you may have shoeboxes filled with things you thought might be worth millions or billions one day. If you’re like me, you thought that every week you earned an allowance or earned money if you ran to the baseball card shop or comic book shop, you were investing in your future. (I thought buying every single Darryl Strawberry rookie card would guarantee enough money for a mansion.) Or at least a big enough house for the 6 kids I planned to have.

Sometimes, I’d buy extra packs and keep half of them sealed since my dad always said they would be worth more if left unopened. I did the same with comic books, stamps, superhero action figures, books, toys from my favorite horror movies, vinyl, and I still do this to this day. I “invest’ in a lot of different things from my favorite bands, movies, I even started investing in stamp collections for my kids. Not to mention, they get to inherit the baseball cards and comic books I have stashed away in shoeboxes and those nice albums with the pockets and pages. The problem is, every time I look something up, it isn’t worth anything. Sure, the hockey jerseys and autographs from our favorite players are worth something to us and you never really know if they make it big, that stuff could go for quite a bit of money. I also wonder if I’ll ever really sell it anyway, even if it ends up being worth a lot. I also wonder how much money I would have available had I saved the money I spent collecting things.

I think my most favorite part of collecting these things are the memories each item holds. I have a story for every single thing I bought over the years and it’s nice to be able to hold onto those memories! There are times when you find out those toy collections you had as a kid would be worth a fortune but, you reached a certain age and ended up selling everything at a flea market or yard sale. (My husband did this with his GI Joe and He-Man collections.) But, there are still ways to manage your investments whether it is in the form of collections or maybe investing in something such as gold or bitcoin or stocks. Or maybe you prefer to collect “grown-up” things like rocks, paintings, gemstones, or watches.

Even if you collect toys and comic books, you may want to check into the laws regarding the amount of money you might earn from your investments. Unfortunately, there are tax laws and you could be hit with a whopping 28% tax. That’s pretty huge when you consider you aren’t allowed to deduct anything for your collectibles. However, if you were investing in stocks, you would be taxed at the same rate but can offset capital gains with losses. Another grown-up thing to think about is homeowners insurance. It isn’t too easy to find a decent policy that will give you your monies worth for every single thing you own. If you have a lot of prized possessions, you may need to bump up your insurance policy. If you want to list each item separately and insure each piece individually, you will need to pay a bit more for your policy and be very thorough in your record keeping. Otherwise, you could just insure the contents of your home with a blanket policy and set the limit for each item. If something unfortunate happens, you may not get the price you paid or the value for it but, you will be able to escape the high prices that come with itemized coverage.

I’ve found that when I check online to try to find what things are worth, what collections are holding up in value, it is a little hard to find a direct answer unless you know what you’re looking for. Sure, people can post on eBay and claim that the Beanie Baby collection they’re selling is worth $50,000 but, is it really? You can say it’s worth whatever you want but if people aren’t buying it, it’s probably not worth much of anything. If you find yourself stuck with a bunch of sports cards and toys and a savings account with a balance of $5, how do you plan on purchasing a house or a car or any of the other cool things your collections were supposed to buy?

While I wouldn’t ever consider getting rid of my collections or even selling them. I may consider if the price is right. Until then, I intend on keeping these things and passing them onto my children in the future. Whatever you choose to do with your investments, you can contact The Associates Home Loan Of Florida to ask for help when you’re ready to buy a home. There are so many ways to earn money these days, especially with the Internet!

If you did make good decisions on your investments and you decided to invest in artwork or diamonds, you’re in a great spot for your future and most likely your children’s future and their children’s futures! There are so many different things to buy and invest in and so many ways to earn money and save money and so many different types of situations and nontraditional income anymore. It’s always super helpful to find advice for your own unique situation. Plus, you don’t have to be a billionaire to buy a new home.

As for your collections, whether they are worth monetary value to anyone or not, you should still find joy in collecting! It would be boring if you had friends over for a few games of pool and you had nothing on the walls or on your bookshelves to look at. Besides, everybody needs a hobby and I am still waiting to find out what happens when we grow up. (and I’m 45!)

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