If I Had a Million Dollars...
If you were/(are?) a millionaire living through a severe global financial crisis and an Obama presidency wrought with uncertainty in the markets and looming tax increases, how would you/(do you) hedge your wealth?
According to a story in Bloomberg,
Six “passion” investments…typically account for about a third of a millionaire’s total holdings: luxury collectibles such as yachts, jets and high-end cars; art; jewelry, gems and watches; other collectibles such as wine and coins; sports investments, including teams and race horses; and a “miscellaneous” category comprising club memberships, musical instruments and other items.
Most individuals with assets ranging from $1 million to $5 million, excluding primary residences, had 30 percent in luxury collectibles in 2009, up from 27 percent in 2008.
Intriguingly, a millionaire’ s decision on which type of “passion” investment to make tends to vary depending on which part of the globe he calls home:
American and Japanese millionaires spent the most on luxury collectibles. Europeans and Latin Americans put more emphasis on art. The rich in the Middle East and Asia focused on jewelry, gems and watches, according to the study.
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May '10
Re: If I Had a Million Dollars...
Interesting.
Does this mean one shouldn't wear a watch to an art show or jewelry in an Aston Martin? Does a true "citizen of the world" commission for himself a mosaic of a yacht in a sea of emeralds?
May '10
Re: If I Had a Million Dollars...
The first time I went to Greece in 1997, I decided that if I had the money, I'd buy a Greek island - if only they were for sale. Now, it looks like at least part of my dream is coming true. I just need the money. I say the Ricochet contributors should pool their resources and buy an island. Do a timeshare thing. Of course, they'd have to invite us loyal commenters for an occasional visit. :)
Re: If I Had a Million Dollars...
Actually, Karen, these days we might be able to afford a Greek island. And of course Ricochet members would be welcome anytime.
Jun '10
Re: If I Had a Million Dollars...
Even me Rob. Can I come too?
Actually, assets of 1-5 million including home aren't going to buy a whole lot of luxury anything. How about some nice cigars? No doubt a depreciating asset, but an enjoyable one.
May '10
Re: If I Had a Million Dollars...
The picture at right is of a half-acre island my brother and I own in the Georgian Bay, Ontario. It's too small to build on, so it's practically worthless (<$5000 Canadian). We sleep in tents and go potty in a 5 gallon bucket. Ricochet members are welcome any time.
Jun '10
Re: If I Had a Million Dollars...
Collectibles (art, antiques) are both passion and investment, and now is a good time to buy, when some may need to part with their prized possessions to pay the mortgage. Like securities, the best time to buy is when everybody else is running for the exits.
Jun '10
Re: If I Had a Million Dollars...
I take a little different line. Buy lots of marginal farmland, get large government crop subsidies for not growing things (something I do very well), then buy the entire country of Greece (which can be picked up cheap right now). But on second thought, it would probably turn out to be a real pain to run Greece (all those 50 year old retirees to take care of), so just stick with the not growing anything scam.
Jun '10
Re: If I Had a Million Dollars...
Starbucks....?
May '10
Re: If I Had a Million Dollars...
Aaron: Starbucks, no. Tim Horton's, yes, after 20 minutes in a boat and 30 minutes in a car.
Jun '10
Re: If I Had a Million Dollars...
Horton's will do.