Are comic investments a better option than 401K's and Mutual Funds

[ComicsAndCode]

The "There's no need to slab my comics" thread inspired me to ask this question.

 

Definitely not an easy question and it might call for a "depends" answer. But this is something I've thought about for a while, but never got around to asking more seasoned comic collectors. I am aware that when it comes to investing in general, the golden rule is to diversify your assets. But if one had to choose one over the other, is it advisable to put your money into investment books or 401K / mutual fund? or a little bit of both? Which is riskier? etc.

 

Your thoughts?

[Dad&Son-migration]

I would never bank my future on a consumer product. Place it into regular mutual funds or standard investment instruments. The main reason is pure liquidity. You can sell a mutual fund at anytime. Even an index fund that mirrors the market will perform over 10% a year compounded in equities over the last 30 years. Although neither standard investments or comics are guaranteed in the future. You'll have a heck of a time moving comics. The other side of the equation is the tax advantages in the short term, or present, to investing in "real" investments and not comics.

[shadroch]

Although most will disagree with me,I feel a mix of both is quite appropriate.My portfolio is split between stocks and assets-assets being real estate,comics,investment grade coins,fine art and raw silver and gold.At this stage,I'm not into bonds but as I get older,I'll begin the shift into them.

The advantage of comics and art is that they have a great upside potential,and there is little papertrail,the downside is that they earn no interest and storing expensive books or art is problematic.

With that said,I wouldn't invest a dime into comics until I've maxed out my IRA each year.

[piper]

Collecting comics is a *spoon* shoot and you do it because you love it. Not withstanding the market fluctuations that can happen to any collectible, how easy would it be to sell your "investment".

 

Stocks and Mutual Funds are the way to go! If and when I sell my collection, anything I get for it will be just icing on the cake.

 

My comic budget comes from my discretionary spending.

[kc120us]

It would be foolish to invest your money in just one venture. Comics can be included in your investment portfolio but only as part of a greater whole. If I had to chose one or the other, I would chose mutual funds (i.e. funds that are well diversified over stocks, bonds, etc.) for investment purposs. There is no telling what the comic market will be like in the far off future. That is why diversification is so important. It also depends on your age. For those collectors who are nearing or at the age where they would want to cash in their investments, comics might be a better investment than for those whose retirement is far off, depending on when they bought them and their current value.

[kc120us]

Although most will disagree with me,I feel a mix of both is quite appropriate.My portfolio is split between stocks and assets-assets being real estate,comics,investment grade coins,fine art and raw silver and gold.At this stage,I'm not into bonds but as I get older,I'll begin the shift into them.

The advantage of comics and art is that they have a great upside potential,and there is little papertrail,the downside is that they earn no interest and storing expensive books or art is problematic.

With that said,I wouldn't invest a dime into comics until I've maxed out my IRA each year.

 

You make very good points.

[lizards2]

Comics can have a rate of return higher than many other investment vehicles. You have to know what you are doing, however.

 

There is also the general illiquidity factor to consider - you have to have some time to realize a good price on a sale.

 

They are a great investment when you consider them a "hobby" that pays dividends. Most folks have hobbies with no potential monetary return.

[MutantKeys]

It would be foolish to invest your money in just one venture. Comics can be included in your investment portfolio but only as part of a greater whole. If I had to chose one or the other, I would chose mutual funds (i.e. funds that are well diversified over stocks, bonds, etc.) for investment purposs. There is no telling what the comic market will be like in the far off future. That is why diversification is so important. It also depends on your age. For those collectors who are nearing or at the age where they would want to cash in their investments, comics might be a better investment than for those whose retirement is far off , depending on when they bought them and their current value.

[Comicdey]

Roth First, 401K too, other financial investments, hard assets, land, then comics.....

[MK Ultra]

Greater fools theory

[kc120us]

It would be foolish to invest your money in just one venture. Comics can be included in your investment portfolio but only as part of a greater whole. If I had to chose one or the other, I would chose mutual funds (i.e. funds that are well diversified over stocks, bonds, etc.) for investment purposs. There is no telling what the comic market will be like in the far off future. That is why diversification is so important. It also depends on your age. For those collectors who are nearing or at the age where they would want to cash in their investments, comics might be a better investment than for those whose retirement is far off , depending on when they bought them and their current value.

 

[Karma23]

Roth First, 401K too, other financial investments, hard assets, land, then comics.....

Land, Land, Land! too many people and not enough room for em all. supply and demand. There will always be a demand for land not necassarily comics, just my take

[sterlingcomics]

Although people have made good money selling comics, you should never work under the assumption that comics are an investment. Treat it as sunk costs and don't count on it as part of your retirement/investments.

 

If you get most/more for your hobby when you retire from it, great. But I wouldn't bank on it.

[whomerjay]

I'd have to say that if we're talking pure investment angle, and comics are essentially widgets to you, for the overwhelming majority of people comics would be an incredible poor choice relative to a 401k/mutual fund and would rarely give a comparable return on investment. The appreciation rate for most comics (factoring in the cost of selling and attrition from loss/damage) never approaches that of Mutual funds, especially over the long haul. Only under those circumstances where the investor "really knows how to pick 'em", or you put considerable sweat into constantly turning almost all of your books over to repeatly compound say a 10% profit per sale (i.e, you really know how to deal and thus it's your JOB not an investment), can comics make you money.

 

These conditions do not apply to most of us because we buy a lot of books that are for our collection but we "might" want to sell them. The problem with collector/dealers,and most dealers as well, is they have lots of $ tied up into books that will never sell. If you only consider the books you sell, yes you might realize a profit, but overall you're in the hole.

[Comicdey]

I'd have to say that if we're talking pure investment angle, and comics are essentially widgets to you, for the overwhelming majority of people comics would be an incredible poor choice relative to a 401k/mutual fund and would rarely give a comparable return on investment. The appreciation rate for most comics (factoring in the cost of selling and attrition from loss/damage) never approaches that of Mutual funds, especially over the long haul. Only under those circumstances where the investor "really knows how to pick 'em", or you put considerable sweat into constantly turning almost all of your books over to repeatly compound say a 10% profit per sale (i.e, you really know how to deal and thus it's your JOB not an investment), can comics make you money.

 

These conditions do not apply to most of us because we buy a lot of books that are for our collection but we "might" want to sell them. The problem with collector/dealers,and most dealers as well, is they have lots of $ tied up into books that will never sell. If you only consider the books you sell, yes you might realize a profit, but overall you're in the hole.

 

I've been in a comic hole for many years, luckily I have all these great comics to cover me up and keep me warm.

[joe_collector]

People who say they are "investing in comics" have absolutely no idea what a true investment is.

 

Here's an example - sell a pile of comics (that you bought years ago for $10K) for $1K and try to apply that $9K capital loss against your capital gains on stocks or other investments for the year.

 

You'll either need a very inventive accountant or a good lawyer.

[Scheradon]

I've always viewed comics as more of my entertainment/wasted funds replacement goods.

 

To explain; As a kid, my friends and I used to go to the Mall and while they blew their allowance at the arcade, I rarely ever played any of the games (unless I found a game with credits available). I just watched them play. Instead, I went to Waldenbooks and bought the latest Mad Magazine or Mad paperback books. At the end of the day, they had nothing but some Pac-Man memories and I had something tangible to show for my funds.

 

Now that I'm older, it's still sort of the same line of thinking for me. I don't drink or smoke, so in place of those types of wasted funds (my term), I buy comics.

 

So, while I won't compare investing in comics to one's 401k, I would say they are a better use of your money than arcade games, smoking, drinking, and other expendable income targets.

[joe_collector]

Only under those circumstances where the investor "really knows how to pick 'em", or you put considerable sweat into constantly turning almost all of your books over to repeatly compound say a 10% profit per sale (i.e, you really know how to deal and thus it's your JOB not an investment), can comics make you money.

 

Exactly - the people making money off comics are dealers/sellers, and the poor sods who "buy and hold" end up left with 90% low-value drek in the long run.

 

But of course, we *always* hear about the 10% on here.

[joe_collector]

Now that I'm older, it's still sort of the same line of thinking for me. I don't drink or smoke, so in place of those types of wasted funds (my term), I buy comics.

 

That is a damn good example.

 

I used to smoke, but gave it up 3 years ago, and now I get a weekly stipend equivalent to my butt budget that I save up and buy comics with. That's not *all* I spend, but it's amazing how many books I can get for the same $$$ that just went up in smoke.

[Comicdey]

Now that I'm older, it's still sort of the same line of thinking for me. I don't drink or smoke, so in place of those types of wasted funds (my term), I buy comics.

 

That is a damn good example.

 

I used to smoke, but gave it up 3 years ago, and now I get a weekly stipend equivalent to my butt budget that I save up and buy comics with. That's not *all* I spend, but it's amazing how many books I can get for the same $$$ that just went up in smoke.

 

You smoked comics