Serious Investment Question??

Discussion in 'Guitars in General' started by R.Kirkland, Oct 23, 2008.

  1. R.Kirkland

    R.Kirkland Member

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    Well my wife will be giving birth to our first child around May 15th. I also will be coming into a large (well what I consider large ) sum of money here soon. and again this time next year. I (and my wife ) have always been terible about saving money, no matter what happens it is gone before we get to enjoy it or save it . SO we were talking about investing it in something that would have some sort of security for future needs. and tonight I was thinking in investing in vintage instrument some where between $5,000-$15,000 and in hopes the values will at least stay the same or increase in the next 10 15 years. I know this sounds like BS becasue I come from the mentality that these things are meant to be played. but with the way the economy is going and stock market as weak as ever. Those options are just not gonna happen.. However i am completley scared that we will Completly waste this money by piddling it away on BS with absolutley NOTHING to show for except maybe a paid off bill or a new TV and nice DVD player. For the people that live hand to mouth can appreciate how quickly large sums can dissapear when you are not use to having that kind of money at hand. so any advice would be great I was looking into a 60's strat or something . but would like to know first hand experience in making a return or even breaking even on an instrument like this. also what kind of gamble will I be taking that the bottom may just fall out on Vintage instruments all together... ... Input Input Input Please... for the record .. i would never consider paying this much money for an instrument otherwise. this would strictly be investment only. ( which goes against My views on the cost of these things to begin with ) i am such a hypocrit...LOL .... it is all just a thought at the time before I get the money and it burns a hole .... so if I am full of $H!T feel free to tell me ...

    Peace and Thanks to all

    Ryan
     
  2. jazzandmetal?

    jazzandmetal? Supporting Member

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    WTF! My daughter came with bills, not money.:messedup
     
  3. Jagsound

    Jagsound Member

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    Investing in something you are interested in makes sense, but one thing to remember about vintage instruments is that they are not liquid - it can take time to get your money back out if them. Also, if it's a situation where you need the money urgently then you could be forced to sell in a down market.

    Vintage gear is a longer term investment in my opinion and it is important to get one that is in top condition (always easier to sell). I do share your fears about financial markets, and also your fear about pissing the money away on BS! Been there done that. :)

    The state of the financial markets is volatile but there are good buys out there at the moment, sadly I can't offer any advice about stocks and financial products. Good luck, and there are quite a few sharp investment guys on this forum - maybe post this in the pub as well.

    Cheers
    Jag
     
  4. R.Kirkland

    R.Kirkland Member

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    mines Coming with Bills too ,Trust Me .. We had to do Invitro Fertilization to even get pregnant . Talk about expensive.. makes a 60's strat look cheap. I am selling a portion of my business to get the moneys i speak of .. . I am so stoked about having a child though we have been trying for about 3 years now so it is definatly a Godsend.....
     
  5. jazzandmetal?

    jazzandmetal? Supporting Member

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    On a serious note, the first thing you should do after the baby is get debt free before investing in anything else.


    *Edit. Congratulations on the baby!!!!
     
  6. R.Kirkland

    R.Kirkland Member

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    yeah we are getting close to that right now . i just got out of my car payment and we LOWERED my wifes by quite a bit.. mostly just little annoying stuff that should be gone soon.. other than that it will be the standard House car utilities and couple of Harley's . so i think we are good there. my problem is I will SOMEHOW be able to justify buying a ton of pedals a few guitars and a few amps . and she could do the same with jewelry LOL... It is easy to say SAVE IT. But when you see something you want it is just as easy to go well we can just dip into that its only $XX .... and then we gots nothin again... I have even though about talking to whatever that Edwards place is for financial advice. but I trust fellow gearheads more LOL:NUTS

    Thank you BTW
     
  7. jazzandmetal?

    jazzandmetal? Supporting Member

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    I think paying her car off if you can and getting rid of all debt would be better than investing in instruments or anything else. Also, with the baby you need to make sure you have at least 3 months of complete expenses saved up that you can access immediately. Just in case....
     
  8. R.Kirkland

    R.Kirkland Member

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    yeah that seems realistic... I have just always hated paying for a new car in Full because They Depriciate so rapidly. Yet on the other hand you save a ton of money in interest.. but even if we do that now . I will be recieving the same amount next year or sooner .. so what then?? we have already got on a program (as well as My folks and inlaws ) that when we buy certain products at the Grocery store a percentage goes to a savings (college) fund for our child. I thought that was pretty neat it doesnt cost us anything these companies just send a precentage to an acount for us..
     
  9. gixxerrock

    gixxerrock Member

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    Congrats on the new baby. My free investment advice (IMO):

    - put aside a small portion (20%) and do something fun. Whether that is a new guitar, big screen TV, vacation, nice dinner etc...

    - get a good financial guy and pick up a few US stocks where the company is financially sound but below book or intrinsic value. It may be a rocky ride for a few years, but probably the smartest thing you can do long term. Warren Buffet, who is an ultra conservative value investor, just went from all cash to fully vested in US equities with his personal portfolio. Buy whatever Warren bought.

    - If houses in your area are selling below intrinsic value ( rent could service mortgage payment) then use money for down payment.

    I would not mix a personal hobby with a serious long term investment. If you want a nice guitar that you play and will hold its value or appreciate over the years, then by all means follow your heart. I have bought a few expensive guitars and amps over the years. The only one I have any regret over is a guitar I was not in love with but I thought would be a good investment. The others I play the hell out of them and they more or less hold their value. Good luck.

    Shawn.
     
  10. R.Kirkland

    R.Kirkland Member

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    This has hit home quite well. I am just leary of the Stock market (A) as far as Security (B) I know nothing about the real game is played I know Buy low sell High , and thats about it . however i am a fairly sharp person and would have to feel Extremley comfortable with someone to trust them with My Financial investments as far as the Market is concerned. I lost an A$$ load from My Nortel Stocks years ago. and havent looked back since. real estate scares me since the supply of homes (at least in my area ) Far exceeds the demand right now. i will talk to some financial advisors and research more into the Stocks to see what will be most secure, rather than getting rich overnight . Thanks .. and any more info would be awesome.....

    Ryan
     
  11. Peppy

    Peppy Member

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    A guitar can be stolen...and thus not replacable.
     
  12. Jan Folkson

    Jan Folkson Member

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    A collectable/vintage instrument can be insured for it's appraised real/replacement value.
     
  13. soldano16

    soldano16 Member

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    The problem with investing in instruments long term is the demographics. It becomes like the vintage car market.

    There was a time when you could get great money for those early cars. But as the folks who care about them died off or grew too old to maintain them, the market has fallen way off.

    Your counting on the fact that someone will want a Strat in 15 years. There may not be as many takers as you think.

    ps: the coming recession/depression will kill prices for at least 5 years if not more. Hold on. Very tough times comng. You will want cash more than guitars.


     
  14. Michael T

    Michael T Member

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    I woulnt buy a guitar in the 5-15K range as an investment. Too low on the vintage value scale and that 'affordable' range will be the biggest hit if the vintage inflation crashes.

    There are better investments to make than guitars.
     
  15. frankthomson

    frankthomson Member

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    i also agree w/ getting completely OUT OF DEBT BEFORE you *invest*

    otherwise your investment profit will be going to paying off debt interest

    that being said, i WOULD DEF INVEST IN VINT GUITARS
     
  16. ksuaggie

    ksuaggie Member

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    Look, a guitar as an investment is a high risk asset. The probability of making much on this as an investment is low, but the potential payoff is high, as is the potential for loss. Classic high risk investment. You are getting some sound advice in some of the responses to this thread, some not so much. I don't know what you are paying on your car loans, but if it's 6%, by paying them off you are investing in a sure-fire return of 6%. Also, an IRA or retirement investment is the equivalent of yourself a great gift when you get older.

    So, if it were me, I'd take a small portion of the funds, say 10% or $1,500, and split it. Get the wife a nice tennis bracelet with half, get a used telecaster with the other. Take the balance, max out your IRA contribution (do a Roth if you qualify), max out the tax deferred college savings plan for your baby, and put the rest in a lower risk, stock mutual fund. Stocks are probably a buy right now, do a balanced fund if you have a lot of heartburn about all stocks.

    Hope this helps, good luck and congratulations of your baby. My kids are the worst financial investment I've ever made, but conversely the very best thing that has ever happened to me and my wife.
     
  17. gixxerrock

    gixxerrock Member

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    Yeah, I didn't mean to imply you should leap into the stock market if you are not comfortable. Now is when the guys with balls of steel are making smart investments that are going to do spectacular in 10 years. There are also some conservative ways you can profit from the current turmoil, but don't listen to anyone's internet stock picks.

    Beware of financial planners, they specialize at looking at the past and extrapolating. Even chief economists at the national level frequently talk out of their ass. They are a great data point, but not the final word. A good business sense, street smarts and BS detector go a long way. I remember back in 2000 (before dot com crash) my financial planner was telling me I needed to move my assets into small cap high tech. I told him no way, I know those guys, and they are a bunch of con artists pedaling their high tech fairy tale to house wives and greedy fund managers.

    Paying off debt is also great idea, as are 401k and other tax efficient investments. The only reason I would hesitate is if your monthly expenses always use up your monthly income. For example, if you pay off a car loan, does that mean you just have another $400/month to spend on all the "stuff" that will expand to take your paycheck. Sometimes the best thing to do with a windfall is quickly put it away in some asset that will quietly appreciate while you struggle with day to day living.

    My hesitation with a vintage guitar, is that the investment grade instruments are priced higher than what they are worth to me as a "players" guitar and therefore, beyond my level of expertise. I will leave that one to the pros.

    Shawn.
     
  18. R.Kirkland

    R.Kirkland Member

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    definatley sound advice. I do live outside my means but always manage to live comfortable .Although recently times have tightend a bit. bills WILL be getting paid off to ease the monthly outgoing Cash. and what is left over this year (after payoffs) is what is in question. Like I say I am not trying to get rich ( I would love to get rich but trying to be realistic too) . My intentions are putting what is left into "something" and pretend it doestn Exsist and continue living the way we are. Rather than pissing it all away on the new nifty thing. and if it proves to be sound investments. I will have an even larger sum to invest in about 10 months to a year . even the $400/ month gone on the car payment will give us enough room to enjoy things that we want. we make plenty of money to pay cash for damn near what ever we want but got caught up in the Dept. store cards, Guitar center Cards Credit Cards, Small personall loans . and we are getting $20 to death. Makin it a Chore to go pay cash for the TV , Guitar Navigation or whatever it is that is luxury etc. oh and the late fees yeah boy those are fun.. so all that crap will be gone or KNocked down to reasonable . we will take a percentage to splurge and enjoy some and the Reamaining amount needs to go somewhere to get just a slight return and i am happy. if it is more then great. I want My ass covered and cushioned more than I want a bunch of guitars.. .. In a perfect world i would have all.10 years ago i would have said the guitars.LOL I am 28 and just getting all my early credit Blunders straightend out. This money will do that , and then the rest needs protection from me and My impulse Gear buying...LOL any of you that do invest in the market that might be willing to explain things or advise . Either PM or Email would be killer. I wouldnt mind discussing the amounts i speak of privatley so someone might better advise me to decent or better ROI ... unless we get into some martha Stewart **** then nevermind. :nono

    Thanks again you guys are great.. and I appreciate your time in dealing with me on this... Do they make medicine for being Scared of yourself....:worried
     

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