What collections did you have growing up?
I’m sure you have heard the expression, “boys and their toys”. This is a phrase for those of us who like to collect things.
But we really shouldn’t define this to one gender. Most of us are guilty of amassing stuff. Whether it is baseball cards, comic books, vintage video games, precious moments ornaments, shoes, purses, collectable dolls, coins, stamps, or so many more possible options, many of us like to collect trinkets.
But it doesn’t stop there.
What about more expensive items like cars, snowmobiles, boats, etc, etc. There is no limit to the amount of stuff you can buy and stuff you can collect.
What will happen to your collection?
Recently I was going through an estate sale property. The owners lived in the home for over 50 years and they were collectors. They had shelves after shelves of collectable cars, toys, dolls, coins, stamps, etc. Literally, thousands of items for the family to sort through.
The family brought in appraisers for the collections. Some had a decent value attached to it, “assuming you can find the right buyer”. Others had real limited value. The family started the process of selling the items on different websites. They have been able to now sell about half of the items to this point. But the number of hours spent going to the house has been immense.
It really has put my collection hobbies in perspective. No matter how cool I think my bobblehead collection is, I can expect that when I’m gone, my son will likely get a dumpster and toss them out. Same goes for many more of my precious trinkets adorning my man cave.
Kinda sucks, doesn’t it?
Why not make stocks and savings your collections?
But I’ll share with you the items this couple owns that has a ton of value. Their stocks and savings are easy to sell and distribute amongst their heirs, as is their home. Yes, it is as dated as you can imagine but the home they purchased in 1959, with all of its wallpaper and shag carpeting has risen in value. A LOT! Once they finish the task of cleaning out the house, the family can put it on the market as is. Because of the location, the demand is there, despite the decor. They can also decide to allow one of their family members buy the others out and convert the literal “grandma’s bungalow” into a legal 2-unit dwelling and allow the family members to create even more wealth through that home.
So, as I think back about the THOUSANDS of dollars I spent in my youth on baseball cards, coin collections, signed prints, and so much more, I wish that I would have chosen to use some of those funds to buy stocks.
Back in the ’80s, it was so much more expensive to acquire 5-10 stocks of a particular company. But today, there is no excuse. With online trading, for the cost of $10 a transaction, you can set up an E-Trade account, or TD Waterhouse or some other self-directed brokerage account.
You aren’t too young to start your collection!
Instead of buying that extra pair of shoes, you can buy a couple of Nike shares. Instead of spending on that newest iPhone gadget, buy a few shares in Apple. Instead of ordering from Amazon, buy Amazon. Instead of buying that stuffed Mickey Mouse, buy Disney. Skip the Non-fat Latte, with extra foam, and sprinkles on top in favour of some Starbucks stocks. These assets won’t depreciate, or be scorned by your heirs when you are gone.
To the people reading this under 30. Much like me back then, you think you will be around forever. You have time to catch up.
My advice is to make small steps now and start to accrue some real assets.
Make that your collection! Make it fun!
It may seem overwhelming but it is as simple as opening an online account and then putting in some funds, then buy the stock.
If you can book a flight or hotel, or buy something on Amazon, you can absolutely buy your first shares of Royal Bank. Yeah, there is a $10 or so transaction fee, but let’s be honest, haven’t we all blown $10 on shipping charges to get those new shoes or clothes.
The difference is, this item doesn’t drop to 50% of its value the minute you get it.
The coolest thing of all of this is each of your newest “trinkets” of stocks, can provide you with dividends, and has the potential to rise in value. It really can become a fun hobby.
One that won’t be dumped out with my bobbleheads.