How High-Value Assets can Protect Retirement Income

Ideally, retirement is the time wherein you will enjoy the fruits of your labor and devote time to things that you’ve always wanted to do. It is usually referred to as the golden years, but how your quality of life during this period will only be as good as how much you prepared.

Unfortunately, some people fail to plan for retirement during their working years and end up relying on their loved ones for financial support. This happens when their savings gets depleted due to a disease, long-term care needs or other unforeseen events. Being a burden to family and friends is something that seniors don’t want, but they end up being on the receiving end of help because of the lack of retirement planning or income protection.

Normally, people build retirement income through plans like 401k and IRA and financial products such as annuities, stocks, and long-term care insurance. But aside from these conventional means of building a nest egg, high-value assets can also offer a layer of protection over your retirement fund.


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High-value assets such as art, antiques, and jewelry can cost much and appreciate in value or at the very least, retain their worth in the long run. This makes them ideal financial protection for your retirement income in the future.

Let’s explore the advantages and risks of investing and high-value assets.

First off, high-value assets are tangible and not just a piece of document like stock certificates or insurance policies. A painting will not just add accent to a room, but it can appreciate in value. A piece of diamond jewelry will not just adorn the body, but can also be an essential part of your assets. A piece of antique may not just be a family heirloom, but can also protect your fortune, especially when you retire.

“Both art and antiques are great investments for people who have money they want to put aside long-term,” disclosed Kevin Yardumian in a report from CNBC. He’s a collector of 19th century art and partner in Gumbiner Savett, an accounting and business advisory firm.

Yardumian also mentioned that these types of investments are not liquid, and you can’t expect a high resale value if your purchase a piece today and plan to sell it soon. However, if you hold on to such items for a long time, your pieces can appreciate in value and be worth so much more in the future.

Meanwhile, investing in art is not just solely for the wealthy and affluent, according to Michael Moses, founder of Beautiful Asset Advisors and retired New York University business professor. He noted in the same report that, “Our research has shown over the years that art is this wonderful asset class, in the sense that there’s a painting for every purse.” Furthermore, Moses stated that artwork with lower costs may perform better than those that came with a higher price tag.

However, Moses also warns that while art can be a good investment, you shouldn’t put all your eggs in it. A person who has $500,000 to invest should only put 10 to 20 percent in illiquid assets such as art and antique. This means that while collectibles can be high in value, it’s still not wise to overspend on these items and expect them to generate ROI that can finance your life in retirement. At the end of the day, it’s still essential to diversify your portfolio so that it can be more resilient to market volatility and have enough cushion for unexpected expenses.

Craig Bone (1955-Present) Elephant Original Oil On CanvasYardumian and Moses may have only tapped art and antiques in their statements, but the same can also be said for other high-value assets such as diamond jewelry, luxury watches, and designer bags. While they are not financial products per se, they can provide some sort of umbrella over your retirement fund during the rainy days, especially if you know how to play your cards right. Instead of tapping into your pockets or savings, these items can be sold or used for a loan to meet unforeseen needs.

READ: Are Hermès Birkin Handbags Good Investments?


Selling or Using High-Value Assets for a Loan

When you need to tap into the worth of a high-value asset, you can liquidate it through selling. There are people who are willing to pay any amount for a particular piece of art, antique, or bag and if you happen to have that item, you are at an advantage. Timing is also key as the price of the piece is also dependent on current market demands and behaviors.

Meanwhile, if you don’t want to part with an asset, but you need to use its value to meet an expense, you can use it for a collateral loan. The loan amount you’ll get will be dependent on the value of the item, which will be in the possession of the lender while the loan is in effect. You’ll get the piece back once the loan is paid off.

Regardless of whether you opt to sell or loan on the value of your item, Biltmore Loan and Jewelry can help you. We are an institution based in Arizona that aims to help people tap into the value of their assets either through a purchase or loan. Our expert staff employs a convenient process of working with clients. It works this way: You fill up our appraisal form or bring your item along with any documentation related to it. Receive an offer. Finally, walk out with cash on hand. We don’t give you the runaround and we are willing to answer any question you have. If you’re not happy with our offer, we will not force you to make decisions you’re not comfortable with. We’re happy to have helped you in exploring your options.


How to Retain the Value of Collectibles

If you have high-value assets like artwork, antiques, diamond jewelry, luxury bags, and high-end timepieces, take good care of them. Make sure that they are cleaned and stored properly. When they are maintained well, the higher your chances of selling it at a high price or being offered a high loan amount.

Retirement should be a chapter in your life that you enjoy the most. You should spend it with peace of mind and without worry about your nest egg getting depleted because of unforeseen events. If you have high-value pieces, consider including them in your retirement portfolio.