There’s a lot of fear surrounding money when it comes to retirement. Once your regular work income stops, you can suffer a nagging feeling that your finances are on borrowed time. But why not think about the various ways of investing your money that are a little bit different, beyond unit trusts, accounts and funds?
Collectibles
This isn’t about taking a gamble; it’s to do with broadening your investment portfolio and keeping you actively involved.
You can, in fact, invest for pleasure. For some this is simply collecting. But what you choose to collect can have real value, as well as providing you with an interest and something absorbing to do.
There are traditional items people collect as investments. These include antiques, paintings and fine art, coins, militaria and sports memorabilia.
Classic cars are a growing area for investment. The value of some classic cars has soared by over 250 per cent since the mid-2000s, but clearly your choices will be defined by your spending power and should, also, be governed by taste.
In other words, don’t buy just because you think the price will go up; buy
for pleasure.
The Finer Things
Fine wines have become a serious investment choice in recent years because they almost always produce a good return, and they’re also regarded as tax efficient because of being classified as a wasting asset and therefore exempt from capital gains tax.
Prices can vary, so it’s always best to check before you buy, and you should be thinking in terms of a minimum five-year investment, as this period produces the best returns. You should also consider insurance and specialised storage – if you end up with a Bordeaux worth £10,000 you don’t want to risk leaving it on the mantelpiece, or have it nestled up against your supermarket regulars.
You could also consider investing in rare whisky, or even vintage beer – a bottle of Fuller’s vintage ale was recently valued at £250.
Another growing area for investment is in vintage couture clothing. This is essentially a hybrid activity combining leisure expenditure with financial investment. As such, it’s important to get the balance right. For example, vintage couture can have wearable value. If it can still be worn on occasion then this adds to its worth, providing the wearing of it doesn’t cause deterioration, which then detracts from its collectible value.
All these investment opportunities are designed to be pleasurable and absorbing, as much as they are for future money making. Ideal for those wishing to build wealth but in a more relaxed manner.
