What percentage of your total net worth are you comfortable with OA being? 2 2

[Michael Browning]

Thank God, I am very blessed with a lot of great art that I really enjoy. I am very thankful.

Never thought about it as far as a percentage of my net worth and computing all that just isn't something my brain can do. I just buy what I like at a price I'm comfortable paying -- and comfortable knowing I can get what I paid out of it in the end.

I know what the real value of my collection is worth and it's way more than I've got invested in anything else. I made my wife a promise when we got married that I wouldn't take away from our earnings to buy comics and art and that I would use only the profits/proceeds from the sale of my already-existing collection to do that. I have kept that promise for 20 years. I sold off my golden age collection many years ago and invested it in comics and art that I could then, in turn, sell and reinvest in comics and art.

I am a government worker who will have a pretty good government pension when I retire in about 11 years, plus Social Security. We've got a little cash in the bank and I still love selling comics as a hobby, so there's that.

When (if) I hit 60-61, art collectors look out, though, because my art collection will be up for sale. I can't take it with me and I want to be able to enjoy the fruits of my labors for a few years before I die, so I plan to sell. Heck, for the right price, I'll sell now (but the price would have to be the RIGHT price). I'm fairly certain that if my art collection's value continues to grow as it has every other year, I will do better than okay on the sale and have a nice ROI to aid my retirement.

[Captain ShipWreck]

Currently, it's about 60% of my net worth. My collectibles were as high as 80% two years ago when I was still collecting books. I liquidated some when I purchased a house. I've been throwing most of my income into art and books since I started collecting almost a decade ago. I'm 30 btw.

[cstojano]

On 1/22/2024 at 2:52 PM, Captain ShipWreck said:

Currently, it's about 60% of my net worth. My collectibles were as high as 80% two years ago when I was still collecting books. I liquidated some when I purchased a house. I've been throwing most of my income into art and books since I started collecting almost a decade ago. I'm 30 btw.

Good point on age, as age is likely a major factor here. For many at your age there is little compounding on 401k balances, high mortgage debt still, etc. at least that was my experience at that age. 

[Dr. Balls]

On 1/22/2024 at 2:52 PM, Captain ShipWreck said:

Currently, it's about 60% of my net worth. My collectibles were as high as 80% two years ago when I was still collecting books. I liquidated some when I purchased a house. I've been throwing most of my income into art and books since I started collecting almost a decade ago. I'm 30 btw.

 

On 1/22/2024 at 6:08 PM, cstojano said:

Good point on age, as age is likely a major factor here. For many at your age there is little compounding on 401k balances, high mortgage debt still, etc. at least that was my experience at that age. 

Plus, at 30 you want to live a little. Congrats on being 30 and buying a house. That has gone from 'challenging' to 'practically impossible' in the past few years - you are one of the fortunate ones to have locked that in. Good on you for gettin' it done.

[Captain ShipWreck]

On 1/24/2024 at 10:18 AM, Dr. Balls said:

 

Plus, at 30 you want to live a little. Congrats on being 30 and buying a house. That has gone from 'challenging' to 'practically impossible' in the past few years - you are one of the fortunate ones to have locked that in. Good on you for gettin' it done.

Thank you! The timing was perfect and I live in a smaller tourist town so prices weren’t insane yet. My neighbor, who has a similar layout to mine, just sold theirs for 140k more than what I paid. If I were in the market today it would have been practically impossible without selling off some of the best pieces in my collection.

[Terry E. Gibbs]

I think it varies a lot by how old you are (and health etc) and how much is your total wealth.  Right now about to hit 70 but health is excellent, but still started unloading my comics. The art will begin next year. Will probably take 6-8% to the grave, but it will be big pieces of art and slabbed comics of high value easy to sell and low value stuff that will be passed onto much younger cosplay friends as gifts.

When I was younger paying mortgages and school fees I collected only a little in comics but art was too much. Hard to justify when the bank is sending repossession threats (ran my own business - and problems happen) . Business was a success and now buy whatever I want. Note I said what I want not what others value. My stuff turns up now very seldom. Anything new will fit into either of the above categories.

Other thing is I am in Australia and buying art has been challenging pre internet.

Maybe another pertinent question would be "how much does the value of your residence represent on your total wealth. " For me that would be around 20% - with home around 250% of city average price,.or 44 times average annual  pay. So if art was at even 10%, no-one in my family would care, and my son would still threaten to shred it all when I die.

So lots of variables.

 

[delekkerste]

On 1/16/2024 at 10:12 PM, ShallowDan said:

I'm sure others have dealt with similar issues, and am curious how they've handled it.   Have you ever sold OA simply because it was too valuable compared to other assets you owned and it seemed like the prudent thing to do?  If so, were you happy with the decision or was it something you came to regret?  Is there a percentage of your total net worth that you'd be uncomfortable with OA being?

A friend of mine was complaining to me that his goal was to keep his art collection under 20% of his net worth, but, due to the price appreciation of recent years, it is now way above.

I told him to do just do what I do - mark down the value of your art in your spreadsheet. Problem solved.  

Edited January 30 by delekkerste

[ShallowDan]

On 1/30/2024 at 11:05 AM, delekkerste said:

A friend of mine was complaining to me that his goal was to keep his art collection under 20% of his net worth, but, due to the price appreciation of recent years, it is now way above.

I told him to do just do what I do - mark down the value of your art in your spreadsheet. Problem solved.  

"Hi, Mrs. Delekkerste, I'm very, very sorry about the untimely passing of your husband....  Anyway, he had mentioned to me once that there's a spreadsheet somewhere there on his laptop that shows what all that silly art stuff is worth.  I know it's hard time for you, and I want to make things easier, so..."  

 

Reminds me of something I once heard from another hobby.  I'm paraphrasing slightly, but the guy was saying that his second biggest fear was his wife finding out what he'd actually spent on everything.  His biggest fear was her getting ticked off at him one day and selling it all for what he'd told her he'd spent on it 

Edited January 30 by ShallowDan