2 min
Watches Are Not Investments Retire As You Desire
-
- Investing
Title: Watches Are NOT Investments: Beyond The Fads and False Numbers
Introduction:
In the sometimes ‘mirky’ world of investments, the allure of unconventional assets can be tempting, especially when the likes of the Wall St Journal boast about watches outperforming the stock market.
However, as we will discover, the truth behind such claims may not be as promising as they appear. For the discerning professional seeking robust investment vehicles, this blog aims to shed light on the pitfalls of fad commodities and advocate for a more informed approach.
Unmasking the Illusion:
Many prominent publications annually tout the outperformance of watches compared to the stock market. It's an attention-grabbing headline that might have led some to consider certain luxury timepieces as a viable investment option. However, it's crucial to understand that not everything that glitters is gold.
The Reality of Watch Investments:
Let's break down the scenario presented in the report. If one were to purchase a $10,000 Rolex and, through secondary market dynamics, its value increases to $15,000, you’d assume that you could look forward to a $5,000 profit. However, after factoring in taxes, the $10,000 watch could realistically translate to $11,000.
Moreover, attempting to sell this watch to a secondary market dealer means you’re not going to get the full market value. They have to make a profit after all. The dealer's offer may hover around $11,000 or $12,000. This discrepancy between perceived value and actual return underscores the importance of due diligence before leaping into trendy investment avenues.
And sure, you could attempt to sell the watch to the end-user yourself. Invariably though, you’ll end up wanting to advertise it online, via a reputable platform (to avoid scammers and time wasters) and that will come with a hefty advertising fee, shipping costs and the risk of posting high value items.
Diversification: Beyond Watches and Wall Street Hype:
As a seasoned professional, it's imperative to consider diversifying your investment portfolio beyond the conventional choices of stocks and real estate. While the allure of watches may seem enticing, there are more prudent options that warrant serious consideration.
When one looks at the value of watches on the secondary (or ‘Grey’) market, in recent years they have proven to be something of an unstable commodity. Certain hype models rocketed in value during the pandemic, but have since halved in value and continue to drop.
The same has been true of Bitcoin, and while yes: there are huge gains to be made overnight, the inherent volatility that comes with it, is not worth the gamble with a significant proportion of your investments.
Roth IRA: A Strategic Investment Approach:
One such avenue deserving attention is the Roth IRA. Rather than succumbing to the appeal of quick profits, channeling your capital into a Roth IRA can offer a strategic and tax-efficient alternative.
Even if this is not your only source of investment, you should consider it for a significant proportion.
Research: The Cornerstone of Informed Investing:
Before deploying your capital into any investment, be it watches or Roth IRAs, diligent research is non-negotiable. The seductive headlines may grab attention, but a discerning investor delves deeper. Understand the intricacies of the investment vehicle, weigh the risks and rewards, and align it with your long-term financial goals.
Conclusion: Get Your Money Right
In the dynamic world of investments, it's crucial to look beyond the surface and critically assess the opportunities presented.
Remember, getting your money right is not just about avoiding the pitfalls; it's about making choices that withstand the test of time. We are talking about being able to retire after all, which requires a considered approach to risk.
As you navigate the investment landscape, let wisdom, research, and a forward-looking approach be yo
Title: Watches Are NOT Investments: Beyond The Fads and False Numbers
Introduction:
In the sometimes ‘mirky’ world of investments, the allure of unconventional assets can be tempting, especially when the likes of the Wall St Journal boast about watches outperforming the stock market.
However, as we will discover, the truth behind such claims may not be as promising as they appear. For the discerning professional seeking robust investment vehicles, this blog aims to shed light on the pitfalls of fad commodities and advocate for a more informed approach.
Unmasking the Illusion:
Many prominent publications annually tout the outperformance of watches compared to the stock market. It's an attention-grabbing headline that might have led some to consider certain luxury timepieces as a viable investment option. However, it's crucial to understand that not everything that glitters is gold.
The Reality of Watch Investments:
Let's break down the scenario presented in the report. If one were to purchase a $10,000 Rolex and, through secondary market dynamics, its value increases to $15,000, you’d assume that you could look forward to a $5,000 profit. However, after factoring in taxes, the $10,000 watch could realistically translate to $11,000.
Moreover, attempting to sell this watch to a secondary market dealer means you’re not going to get the full market value. They have to make a profit after all. The dealer's offer may hover around $11,000 or $12,000. This discrepancy between perceived value and actual return underscores the importance of due diligence before leaping into trendy investment avenues.
And sure, you could attempt to sell the watch to the end-user yourself. Invariably though, you’ll end up wanting to advertise it online, via a reputable platform (to avoid scammers and time wasters) and that will come with a hefty advertising fee, shipping costs and the risk of posting high value items.
Diversification: Beyond Watches and Wall Street Hype:
As a seasoned professional, it's imperative to consider diversifying your investment portfolio beyond the conventional choices of stocks and real estate. While the allure of watches may seem enticing, there are more prudent options that warrant serious consideration.
When one looks at the value of watches on the secondary (or ‘Grey’) market, in recent years they have proven to be something of an unstable commodity. Certain hype models rocketed in value during the pandemic, but have since halved in value and continue to drop.
The same has been true of Bitcoin, and while yes: there are huge gains to be made overnight, the inherent volatility that comes with it, is not worth the gamble with a significant proportion of your investments.
Roth IRA: A Strategic Investment Approach:
One such avenue deserving attention is the Roth IRA. Rather than succumbing to the appeal of quick profits, channeling your capital into a Roth IRA can offer a strategic and tax-efficient alternative.
Even if this is not your only source of investment, you should consider it for a significant proportion.
Research: The Cornerstone of Informed Investing:
Before deploying your capital into any investment, be it watches or Roth IRAs, diligent research is non-negotiable. The seductive headlines may grab attention, but a discerning investor delves deeper. Understand the intricacies of the investment vehicle, weigh the risks and rewards, and align it with your long-term financial goals.
Conclusion: Get Your Money Right
In the dynamic world of investments, it's crucial to look beyond the surface and critically assess the opportunities presented.
Remember, getting your money right is not just about avoiding the pitfalls; it's about making choices that withstand the test of time. We are talking about being able to retire after all, which requires a considered approach to risk.
As you navigate the investment landscape, let wisdom, research, and a forward-looking approach be yo
2 min