collector/saver

Elephant in the room is an expression we seem to hear all of the time now, it's based on the notion that an elephant in the room would be impossible to ignore. Or put it another way - those who choose to ignore an obvious truth tend to focus on smaller issues, and seem unaware of the far more important ones.

Funding our retirement is a good example: “I'll worry about it tomorrow, it's a long way off yet," - but is it? The pension’s time-bomb story continues to dominate in newspapers and the alarm bells have started ringing. Sadly, it seems the elephant is about to deposit do-do’s all over the floor!

Retirement and pensions is not only a UK problem; things are just as bad in America, and France. The new British PM - in a major shake-up of state pensions - has said the age at which people can get their pension will jump in line with rising life expectancy, with the state pension for men rising to 66 no sooner than 2016, and 2020 for women.

Right now, if you're a 40 year old man in the UK, you could be looking to draw your first state pension on your 71st birthday. And if you do reach your 65th birthday your current reward is one of the lowest state pensions in the developed world, with a life expectancy to live for another 21 years! Women are expected to live another 24 years once they reach their 65th.

Perhaps you've been relying on equity release from your property? If so you'll know better than anyone what impact the housing market has had on your retirement plans.

As a life-long collector of all sorts, and thinking about long term saving, the simple logistics of collecting/saving (as I originally saw them) became insurmountable so I’m ploughing on hoping to plant a seed of an idea.

It's safe to say the professionals have finally learnt the benefits of diversification and are taking very seriously a new concept in wealth management. As an example, investment funds have already begun investing in rare and unique collectibles. Anything - i.e. violins, wine, rare stamps, gold coins - they all have dedicated funds looking for top quality material.

Have a look at how they extol the advantages in expensive glossy brochures
Impressive historical returns
Global database of collectors underpinning prices
Huge increase of interest from emerging economies
Market size expected to double in 20 years
Limited supply products.
But don’t get too excited yet! These collectible investment funds are not aimed at the masses. This one, as an example, had a minimum entry level of £100,000 ($150,000).

To help you take personal control of your own finances and take investment decisions away from those who got it so wrong in recent years, this unique solution could be modified to suit your own situation. There are 200 million serious collectors around the world underpinning prices so it is unlikely collectibles can lose their value overnight.

Most of us at some time or another have caught the collecting bug, so have you ever thought of re-looking at your own “collections” and with a set outlay each month go on to expand and build up your own little treasure trove as a hedge?

This increased demand for a limited supply product suggests the next 20 years will continue to see impressive returns in the collectibles market as more collectors from emerging economies enter the market. Couple that with an increased number of people resuming childhood hobbies and you can see why investment funds are showing an interest.

It's a fact that rare collectibles have historically increased in value by approx 10% per annum. Rare stamps are up 10% per annum on a compound basis over the last 50 years. Some markets have performed even better...Coins are up an average 11% per annum over the last seven years whilst rare autographs have increased by 12% per annum (compounded) over a 12 year period.

Does it make you think? Bet you can’t wait to have a look in the loft or on top of your wardrobe for inspiration.

Mgs700wds2203mmxi (r/w)