Done

RYK · June 21, 2005 3:31AM

Done

vega1 · June 21, 2005 3:36AM

Get a new financial advisor

Steve27 · June 21, 2005 3:38AM

I would go with number three, as long as he doesn't make a comission on your other investments.

alfalfa · June 21, 2005 3:42AM

I don't consider my collection an investment, and so don't mentinon the value of my numismatic holdings when discussing my finances. Although my currency collection totals about 10% of my net worth.

RJ

morgannut2 · June 21, 2005 3:42AM

If it's your "Gross Worth" and your house has been just reappraised, then he might be correct.

RYK · June 21, 2005 3:43AM

don't consider my collection an investment, and so don't mentinon the value of my numismatic holdings when discussing my finances.

Like it or not, it is an asset. I could exclude the collection from my balance statement, but then he would want to know where all the money went. He has a strong accounting background; I cannot hide it from him.

ArgentumRex · June 21, 2005 3:46AM

The interesting thing about coins is that they're (arguably) an investment/store of value as well as simply a hobby. It's not as if you've got 15% of your assets tied up in Beanie Babies. And I'm going to make a wild guess that you're not hurting for cash, and probably aren't going to be, barring some unforeseeable disaster. I'm sure somehow you'll be able to squeak by on that other 85%. So keep buying coins if it makes you happy.

fishcooker · June 21, 2005 3:49AM

Might be time to sell some stuff that is less important.

mgoodm3 · June 21, 2005 3:52AM

The question is: Does it make you nervous to have that much tied up in your coins? If you think the 85% remaining will be adequate then go for it. You could do a couple different things. 1) Keep buying aggressively until you hit a percentage that your comfortable at (above 15%). 2) slow down a bit and keep the perecentage at 15% as things grow. 3) Liquidate to a percentage that you ahppy with and keep buying at a rate that maintains that.

ritepath · June 21, 2005 3:55AM

<< I don't consider my collection an investment, and so don't mentinon the value of my numismatic holdings when discussing my finances. Although my currency collection totals about 10% of my net worth.

RJ >>

My currency collection is in my checking and saving account. I consider my coin collection to be my MAD money if need be.

RYK · June 21, 2005 4:00AM

Truth be told, he did not say too much. He said he would not be comfortable with me going higher than 15%, which is almost exactly where it is now. Of course, I could write down the value of some coins and buy more. I have decided to heed his advice and keep the collection at about 15%. This might involve selling some non-essential coins and saving like mad to increase the denominator.

Longacre · June 21, 2005 4:01AM

Hmmm. Estimating the value of the collection, that is a pretty impressive net worth!

I say fire the fool and keep buying.

Smittys · June 21, 2005 4:01AM

Does he know anything about the coin market???
If he don't, don't listen

mgoodm3 · June 21, 2005 4:03AM

Sounds like a good plan. Recycle some chaff and make your collection leaner and meaner.

RYK · June 21, 2005 4:04AM

Recycle some chaff

Hey, man, WTF are you calling chaff?

PerryHall · June 21, 2005 4:04AM

<< Does he know anything about the coin market???
If he don't, don't listen >>

msch1man · June 21, 2005 4:07AM

<< About 15%. What should I do? >>

Simple. Start mailing me pieces from the Three Rivers Collection until you are down to the advisor's recommended %. Of the three people involved (me, the advisor, and you), 2 of us will be very happy.

jcping · June 21, 2005 4:08AM

Come on, coins are hobby. If your financial advisor tells you that your car is too expensive, will you sell it ASAP

RedTiger · June 21, 2005 4:32AM

With a quick look at the link for the collection, it looks like you have a substantial base of assets. What would the financial advisor say if you decided you wanted to buy a yacht, an airplane or a vacation home, just for fun? There is more to life than dying with the most beans left in the till. That said, 15% is a high percentage. However you seem to know a lot about coins--probably more than you know about other asset classes such as stocks, bonds, real estate. So I say, keep buying, but try to keep it in the 15% range of the income stream. If further appreciation of the coins changes the percentage that is another thing.

ziggy29 · June 21, 2005 4:35AM

Rather than look at the percentage, I'd look at it this way:

Is the value of your non-coin assets keeping pace with where you need it to be in order to meet your financial goals? As long as that remains the case, I'd not be too concerned about how much of my assets were tied up in coins.

RYK · June 21, 2005 4:38AM

Is the value of your non-coin assets keeping pace with where you need it to be in order to meet your financial goals?

You nailed the essence of the issue. Yes, is.

mrearlygold · June 21, 2005 4:45AM

Ask him if he would like to buy some. If not, why not.

Tom

CardsFan · June 21, 2005 4:46AM

Related to this subject do you feel a little more comfortable knowing that most of your collection at least has a base value in gold, compared to purely numismatic (or mostly silver base) value? I've been determined to try upping the percentage of gold/platinum coins in my collection for this reason, but I just can't quit buying that toned up silver.

291fifth · June 21, 2005 4:48AM

It's much too easy for an enthusiatic collector to overspend on his hobby. Your advisor is probably right...just make sure he isn't trying to steer you into high commission investments.

Darkmane · June 21, 2005 4:51AM

gotta end up on the right side of the obsession vs hobby line. slow down a bit, diversify, and see how things look a year or two down the road

just my opinion

Shamika · June 21, 2005 4:53AM

How about a giveaway?

OKbustchaser · June 21, 2005 5:04AM

Time for a new wif...er financial manager!

TorinoCobra71 · June 21, 2005 5:17AM

<< Get a new financial advisor

>>

Sounds like he wants the Forum to be his advisor..............

TorinoCobra71

RYK · June 21, 2005 5:24AM

I do not need a new advisor, nor do I need a bunch of strangers telling me what to do. I thought it would be a fun subject to bat around.

A giveaway is a good idea, but it actually reduces the denominator, too, so it is not as good as a sale for cash.

I pay the advisor an hourly fee for oversight. He does not sell me investments, insurance, etc., nor does he manage my investments.

gotta end up on the right side of the obsession vs hobby line.

Excellent perception AND advice, Darkmane.

fc · June 21, 2005 5:29AM

I say you stop buying coins that cost more than 500 dollars for the next year.
Try to find some love towards the more common gold coins.

And then maybe, since you are not buying them all (rare southern gold coins), the price will stall
and, heaven forbid, drop.

:-)

Robgetty · June 21, 2005 5:34AM

I do not view my collection as an investment. I would tell my advisor to exclude the coins from my portfolio.

Having said that, I agree that in a pinch if I needed $25,000 I would sell off my collection. But it would not
be a casual money move.

coynclecter · June 21, 2005 5:45AM

If your coins and your Real Estate equity make up more than 70% of your net worth you could be in trouble. They will rise and fall together. The question is "How dependent on this money are you?"

mirabela · June 21, 2005 5:59AM

I don't know your situation, but if the coins were worth melt tomorrow, would your long-term financial picture be OK anyhow? If so, then who cares what he says.

nwcs · June 21, 2005 6:23AM

This is like the thread I started a week ago about how much of a % of your assets are in coins. I think I have too much in coins as well which is why after the coin I purchased last week gets here it'll be the last of the year.

Longacre · June 21, 2005 6:24AM

I wish I had such problems.

DJC · June 21, 2005 6:35AM

RYK~
If you're willing to accept being the old guy who bags groceries or works at McDonald's, you don't have to listen to your advisor. I mean, retirement just isn't all that important to you, is it?

Seriously though, only you really know your financial picture. If the bills are getting paid, retirement goals are on track, and you've got the kids education covered (all assumptions about your possible situation), what's left is more or less up to you. Personally, my beat up five year old cars and modest house is all we want. The wife doesn't care for jewels, expensive clothes or new furniture every other year. She has her hobbies, I have mine. My collections total way more of my net worth than any sane advisor would ever allow, but the wife is happy (believe it or not) and I'm lovin' it.

If the bottom fell out of the collectables market (and I'm in several, so it would have to be a serious situation for that) I would lose a huge sum, on paper. But no more than my stock account or IRA have over the years, and they've recovered in time, as well. Enjoy, keep your priorities straight, and just mumble "I know, I know" and look embarrassed whenever the advisor brings up your collecting expenditure. That's what I do.

(Then I go buy another coin

)

Longacre · June 21, 2005 6:41AM

<< The wife doesn't care for jewels, expensive clothes or new furniture every other year. >>

Does she have a sister?

RYK · June 21, 2005 6:46AM

<< The wife doesn't care for jewels, expensive clothes or new furniture every other year. >>

My wife is the same way--otherwise, I could have never pulled my collection off.

DJC · June 21, 2005 6:46AM

<< 

<< The wife doesn't care for jewels, expensive clothes or new furniture every other year. >>

Does she have a sister?

>>

Get away! She's mine! And, no sister. Come to think of it, you guys around here should worship me for the one I got. I collect coins, little bit of currency, stamps (big time), records, and I restore vintage guitars, and she not only allows it, she actually encourages it!!!

I rule!!!

Or maybe, she rules?

Either way, I'm happy.

BAJJERFAN · June 21, 2005 6:51AM

Unless your financial advisor knows more about coins than you do I would tell him to confine his advice to what he is knowledgeable about.

MacCrimmon · June 21, 2005 6:54AM

I wonder what your FA would have told John J. Pittman.....

Dahlonega · June 21, 2005 7:03AM

Coins should be purchased with largesse for fun. Their purchase should not compromise your standard of living or financial goals but, I know of no percentage of net worth that is 'right' for everyone. When younger I would trim some of my discretionary spending to save for a special coin. But, with rare exception, coins should not be purchased with borrowed money. From my observation compared to a mistress, airplane or boat their purchase even seems prudent.

dan1ecu · June 21, 2005 7:06AM

15% isn't bad. Who's to say that coins won't out-perform other investments in the future?

It's good to diversify.

Dan

coynclecter · June 21, 2005 1:18PM

<< Unless your financial advisor knows more about coins than you do I would tell him to confine his advice to what he is knowledgeable about. >>

If he knew a lot about coins he might not be objective like an advisor should be. He might even add some advise like some have here who care more about coins than about thier financial future. I wouldn't want an advisor who had a obsession with any collectable.

PerryHall · June 21, 2005 6:16PM

<< Unless your financial advisor knows more about coins than you do I would tell him to confine his advice to what he is knowledgeable about. >>

AlaBill · June 21, 2005 10:31PM

RYK,

With the coins I see on your website, I don't think it has anything to do with value. My only concern with having large amounts of money tied up in coin assets is liquidity. I had a house in the mountains once and although the value was there it too almost 2 years to sell and I had to wait for the money.

Done

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