sell my collection or get (more) student loans?

What do you guys think? I have 1 more year at Mizzou and am going to have to get some loans soon. I'm wondering if you guys think I should keep my collection and get loans for the full amount or sell most of my collection to get the loan amount as small as possible. We are talking for the year 15 or so thousand dollars tuition I think. Some of the things I could sell include:
'55 topps (almost complete) set incl. psa 3 clemente, psa 1 koufax
49 bowman jackie robinson psa 1
61 fleer wilt chamberlain psa 5
t206 cy young psa 1
t206 lajoie psa 1
'55 thorpe bvg 3.5
'57 topps football 80% set, incl psa 6 unitas and psa 4 starr
'58 topps football 80% set
'55 bowman football 80% set
71 topps football 95% set
'51 bowman mays poor/fair
the problem is I like a lot of these cards quite a bit. What to do?
John
'55 topps (almost complete) set incl. psa 3 clemente, psa 1 koufax
49 bowman jackie robinson psa 1
61 fleer wilt chamberlain psa 5
t206 cy young psa 1
t206 lajoie psa 1
'55 thorpe bvg 3.5
'57 topps football 80% set, incl psa 6 unitas and psa 4 starr
'58 topps football 80% set
'55 bowman football 80% set
71 topps football 95% set
'51 bowman mays poor/fair
the problem is I like a lot of these cards quite a bit. What to do?
John
Collecting
HOF SIGNED FOOTBALL RCS
HOF SIGNED FOOTBALL RCS
0
Comments
<< <i>Unless you could pay the whole thing off with the collection, I'd say save them and take the loans. You'll be selling into a depressed market, not getting great prices on what you are selling, and you'd still have some part of a loan to pay off. If they are offering the loan, I'd say take it. >>
Agreed. Take the loan. Think of it as you economic stimulus.
Best of luck to you.
Brian
good luck with school
collecting RAW Topps baseball cards 1952 Highs to 1972. looking for collector grade (somewhere between psa 4-7 condition). let me know what you have, I'll take it, I want to finish sets, I must have something you can use for trade.
looking for Topps 71-72 hi's-62-53-54-55-59, I have these sets started
Having student loans can be a major plus after college. Just one full year of repayment will do wonders for your credit score/history. In my case, 100% of the interest I pay can be deducted from my income taxes every year. For an unmarried man without children, that can mean the difference between owing the Federal Government and receiving a refund check. The loans are easily refinanced for low, fixed rates if they don't originally come with one.
Beyond this, there is no penalty for paying a student loan off early and many employers will give incentives towards loan repayment.
...or not.
Or another way to look at it is would you take out a student loan to go buy those cards?
how long will it take you to pay the 15K back if you take out a loan?
Mintacular's suggestion was the best one on here so far. Taking out loan to get a tax break sounds like the logic my wife uses when she wants to foolishly purchase something she doesn't need.
<< <i>Taking out loan to get a tax break sounds like the logic my wife uses when she wants to foolishly purchase something she doesn't need. >>
You can think that, but over the course of my student loan, I'm saving a lot of money by letting it float. You folks with kids have plenty of deductions to help your cause. I'm unmarried with no kids and I'm currently renting, I have no deductions of merit.
By paying my loan to completion, I save myself nearly $1200.00 in income taxes a year. I don't get any benefit from paying it off today.
pull your hair out trying to replace what you sold.
That's of course if you feel that the cards mean enough to you.
If not, then you can rebuild and maybe take a different angle/focus to
your collection after you sold it off.
Use the money saved from the slight deduction to buy more cards.
Student loans have a low interest rate, take them before selling anything you want to keep.
Dave
Best of luck either way!
<< <i>I save myself nearly $1200.00 in income taxes a year. I don't get any benefit from paying it off today. >>
If you pay it off today, you don't have to pay interest any longer (could be a big benefit). If you save $1200/year in income taxes, you are probably paying much more in interest.
Robert
Any high grade OPC Jim Palmer
High grade Redskins (pre 1980)
<< <i>
<< <i>I save myself nearly $1200.00 in income taxes a year. I don't get any benefit from paying it off today. >>
If you pay it off today, you don't have to pay interest any longer (could be a big benefit). If you save $1200/year in income taxes, you are probably paying much more in interest.
Robert >>
I'm 25 years old; I have a financial adviser and a financial plan. I get to deduct 100% of the interest I pay on my student loans at the end of the year...100%. If I see the note out for the full 30 years at my current income level, I will continue to see 100% of that interest. Yes, it's essentially like throwing money into escrow to be used at a later date, but like most deductions, I'm paying in little increments to get to the same larger end.
Last year I was at a crossroads, pay off the $22k in loans I have or use that money to gain interest in savings and further other investment opportunities...basically using my money to make money, rather than pay off a debt that is no more financially demanding if paid off over time as compared to all at once.
I chose to make money with my money because I'm not losing out by carrying the debt.
Now, as my income increases over time, more deductions are available, and itemization becomes more of a reality, carrying the debt may not be as financially advantageous. That's what I have the adviser for. I'm a firm believer that any student loan of less than $30k with less than an 8% interest rate is worth carrying for several years. If I decide I want to eliminate the debt in short order, I can double up on my payments and have it wiped clean in less than 30 months. I will not do this, however, until I've acquire a home loan. At this point, my student loan makes me an even stronger candidate for such a loan.
Debt is something to avoid if at all possible. Material things can be bought again, when you have the paying job, and no debt to hold you down.
If you pay it off today, you don't have to pay interest any longer (could be a big benefit). If you save $1200/year in income taxes, you are probably paying much more in interest.
Robert >>
I'm 25 years old; I have a financial adviser and a financial plan. I get to deduct 100% of the interest I pay on my student loans at the end of the year...100%. If I see the note out for the full 30 years at my current income level, I will continue to see 100% of that interest. Yes, it's essentially like throwing money into escrow to be used at a later date, but like most deductions, I'm paying in little increments to get to the same larger end.
Last year I was at a crossroads, pay off the $22k in loans I have or use that money to gain interest in savings and further other investment opportunities...basically using my money to make money, rather than pay off a debt that is no more financially demanding if paid off over time as compared to all at once.
I chose to make money with my money because I'm not losing out by carrying the debt.
Now, as my income increases over time, more deductions are available, and itemization becomes more of a reality, carrying the debt may not be as financially advantageous. That's what I have the adviser for. I'm a firm believer that any student loan of less than $30k with less than an 8% interest rate is worth carrying for several years. If I decide I want to eliminate the debt in short order, I can double up on my payments and have it wiped clean in less than 30 months. I will not do this, however, until I've acquire a home loan. At this point, my student loan makes me an even stronger candidate for such a loan.
This arguement always drives me nuts. If you pay $1200 in interest each year on your $22k loan, yes you can deduct the $1200 from your income to reduce your tax burden. If you are in the 25% tax bracket, you have saved yourself $300 in Taxes.
The way I see it, and I'm no rocket sceintist, but using debt and interest to reduce tax burdens makes no sense at all, why pay $1200 in interest all year to save $300 in taxes? Sounds to me like you are behind $900. If you have the means to pay off the loan in full, you should, and then start putting your money into an investment that might make you some interest rather than paying it.
Paying interest for the purposes of reducing tax burdens is not smart investing. If you are looking to increase credit scores, that is fine, but remember how much that interest adds up. $1200 a year for 10 years..... $12,000 I bet you could invest that same $12,000 over the next 10 years and end up with a lot more than a tax deduction.
Collecting all cards - Gus Zernial
Post Cereal both raw and PSA Graded (1961-1963)
Can you get a good job after grad?
When would you have to begin to repay this so-called new loan?
Sell the collection if you can. Stay away from a new loan in this economic environment!
Good luck no matter what you do!
rd
P.S. You can always begin new collections. As the years pass, your collecting tastes may change anyway, so selling now may not be the worst thing in the world for you anyway!
Quicksilver Messenger Service - Smokestack Lightning (Live) 1968
Quicksilver Messenger Service - The Hat (Live) 1971
I agree that debt is best avoided, but it's not exactly the doom that many would have you think.
Nothing says you cannot pay off the loan quicker than the monthly payments if you take it out. There should not be a pre-payment penalty. I do not like the tax deduction argument, but that does not make the loan a bad idea.
T222's PSA 1 or better
if you pay 20k in interest on a home loan and make 100k a year then you are paying taxes on 80k a year after you deduct the interest. if you are in a 30% tax bracket you would have paid 30k in taxes before the interest deduction. with income now being 80k you are paying 24k a year in taxes. the 20k in interest you paid saved $6k in taxes....not the 20k in interest you paid. student loan interest would work the same way.
Trust me, I just finished grad school with a ton of loans, kept my baseball cards, and now that I am working. I am still buying cards, and the loans are paid off.
Don't regret the minor debt at all. The joy of the cards is so much sweeter!
Jeff
My Podcast - Now FEATURED on iTunes
IF likely-current prices for the subject cards were higher,
I would sell the cards.
.............
In general, borrowing expensive dollars and paying back
cheap dollars is a good idea.
The key is to have a hedge that will increase in value as
the value of the borrowed dollars shrinks.
Historically, during some cycles, precious metals have been
good for this purpose. In theory, cards could serve the same
purpose, though that would depend largely on the quality
of and the demand for such cards.
........
In general, I prefer a dollar in my pocket to several-dollars worth
of tax breaks, but the interest deduction is viewed differently by
different folks, depending on their circumstances.
<< <i>just because you can deduct 100% of the interest does not mean you are actually saving that amount each year. you are only reducing your income by the amount of interest paid for that you. this just means you are paying taxes on less money each year but it's not a dollar for dollar savings - or even close.
if you pay 20k in interest on a home loan and make 100k a year then you are paying taxes on 80k a year after you deduct the interest. if you are in a 30% tax bracket you would have paid 30k in taxes before the interest deduction. with income now being 80k you are paying 24k a year in taxes. the 20k in interest you paid saved $6k in taxes....not the 20k in interest you paid. student loan interest would work the same way. >>
You're totally right and I'm not arguing that point...I was saying that I'm not paying so much interest on my loans that I'm meeting the cap and not able to deduct all of the interest from my income. I plan my deductions so that I can fall into the lower bracket. I've been lucky thus far. Last year with standard and loan deductions, I dropped into the lower bracket by less than $300. But it was enough and resulted in a savings of around $4k. This year, I will have been a student for most of the year and will make so little that I'll get it all back anyway. Next year as a teacher I'll have a much lower annual salary and will only pull off a lower bracket with a few deferred deductions. After 2010, it will be time that I pay off the loan.
Just kidding...Luckily I never faced this decision as my parents planned very nicely for my 4 year in-state school education, but I don't think I could ever part with any of my cards especially my older 50s/60s stuff. The main reason is I have this fear in the back of my head that I will never find that particular card again, so I guess I'm saying take the loan its just more debt - welcome to that club.
Good luck.
What I'm selling
Building Sets, Collecting Texas Rangers, and Texas Tech Red Raiders
<< <i>I'm 25 years old; I have a financial adviser and a financial plan. . >>
How much does that cost?
<< <i>to think....I do that service for my wife for free.
haha, yeah, as a young person who wants to purchase a home, save, invest, and meet some overall lofty financial goals in a short amount of time, I didn't feel prepared to do it alone.
I didn't have a choice to not get student loans, but I'm glad I did. Despite having my academic scholarship through the state, I had to pay room/board and living expenses out of pocket. I've been very fortunate that having this debt has actually saved money for the 2.5 years I've been paying for it. Despite having had a revolving credit account that is nearly a decade old, it alone wasn't enough to build an adequate credit score for home purchase because the debt was never substantial enough...that's another thing I can attribute to my loan consolidation.
n other words, if you go the sell route, either put a comfortable price tag on your stuff and sell it on eBay BIN/BO or sell to a reputable dealer (not sure those exist
If you get a nice price, it's all good. If not, take the loans. Just DON'T enter the "Well, need to bail on these, let's see what I can get..." mentality.
president BO, leader reid, speaker pelosi, senator dodd and rep barney frank are in the process of turning our country into a nation of victims where the lender of your student loan is a predator and you as the person borrowing the money is an innocent rube not responsible for his actions or more importantly ever having to repay it.
for the politically cluesless think of your collection full of high grade PSA and SGC cards. thanks to our friends in washington they think that all of those beauties (aka your tax money) look better in PRO and Gem holders.
<< <i>i'd go with the take out a loan, and keep your collection route.
president BO, leader reid, speaker pelosi, senator dodd and rep barney frank are in the process of turning our country into a nation of victims where the lender of your student loan is a predator and you as the person borrowing the money is an innocent rube not responsible for his actions or more importantly ever having to repay it.
for the politically cluesless think of your collection full of high grade PSA and SGC cards. thanks to our friends in washington they think that all of those beauties (aka your tax money) look better in PRO and Gem holders. >>
Thanks for your political commentary.
My small collection
Want List:
'61 Topps Roy Campanella in PSA 5-7
Cardinal T206 cards
Adam Wainwright GU Jersey
For what it's worth, I still have some loans, and I can't deduct 1 cent of the interest.
Scrap the cards, you can always get them back, and who knows if demand for them will increase? Kids are barely collecting cards, especially vintage. Most are collecting Yugi-Oh cards. It will be mighty nice not to have that loan payment for the next 15-30 years. You can then start paying yourself instead of the loan company.
It's almost like the 40 yr old virgin movie, when he realized he could live WITHOUT the toys.
Collector of Pittsburgh Pirates cards for a slightly less stupid reason.
My Pirates Collection
<< <i>How about getting a job to pay your tuition? I had a full-time job and graduated in four years. It wasn't so tough. >>
Umm, what year did you go to school, 1960?? Today's tuition rates (15K+/yr) does not allow a full-time student to work and pay off their tuition. JMO, well actually JMO that is right
<< <i>
<< <i>How about getting a job to pay your tuition? I had a full-time job and graduated in four years. It wasn't so tough. >>
Umm, what year did you go to school, 1960?? Today's tuition rates (15K+/yr) does not allow a full-time student to work and pay off their tuition. JMO, well actually JMO that is right
While I know John and don't see him doing this, that post you're making fun of isn't that wacky. You could certainly bartend or take a bouncer job that pays $100/night over a weekend Fri/Sat/Sun plus summer work and make $15K. To think otherwise is purely lazy. Now, would you be sacrificing some of your college experience? Yes, to a certain degree, but having college loan payments is a HUGE anchor.
My Podcast - Now FEATURED on iTunes
P.S. That's wierd PSA wouldn't let me spell out the actual name of that movie. Sorry Joe!