By Christina M. O'Connell
Wealthy investors have many reasons for building collections of art, antiques, automobiles and more and profit is rarely one of them. We found a quarter of wealthy investors are collectors* who spend significant time and money building collections that are driven by a deep passion for their subject.
Though motivated by passion, most collectors consider their collections to be valuable, estimating them at ten percent or more of their net worth. Despite this, many collectors fail to treat their collections as a meaningful investment. For example, 51 percent of collectors have never sought an appraisal, and almost half have no insurance on their collection.
Overwhelmingly collectors prefer to pass on valuables to heirs rather than sell, yet few have educated their heirs on how to manage, appraise or sell the collection. Moreover, heirs are rarely enthusiastic about inheriting collectibles, though duty and guilt lead many to hold onto them.
Overall, just 35 percent of investors who inherited a collection had an interest in the subject. Objects, it seems, are easier to transfer than passion.
Are you—and your heirs—set to get the most value out of your passion?
About the Author
Christina M. O'Connell, CFP® CRPS ®, is Vice President – Wealth Management at UBS Financial Services Inc. in the Washington, DC area. Christina manages a family focused practice serving multiple generations in all aspects of their financial planning, asset & income management, and succession and strategic legacy planning.
She has over 30 years financial industry experience, having started in corporate finance after receiving her undergraduate in Finance from GWU and her Masters in International Transactions from GMU. She was a CPA with PriceWaterhouse in DC and International Internal Audit Manager for a multi-billion dollar public company. She was recruited in 1997 by Smith Barney to advise its private wealth clients and joined UBS in 2007. As a CRPS, Christina consults to various types of investment fiduciaries. As a CFP®, Christina has built her practice into a one stop, holistic wealth management solution for her clients. ubs.com/fa/christinamoconnell
*Per the issue of UBS Investor Watch date 4Q 2017.
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