Investing in a watch and wider financial planning — My Thoughts Featured in Arabian Business
The lack of liquidity, speculative nature, and absence of income generation make watches less suitable for critical financial objectives like retirement or education funding.
When considering luxury watches within the broader scope of financial planning, such as retirement, home ownership, or funding children’s education, a cautious approach is advisable. Luxury watches, while potentially appealing to enthusiasts, may not align well with traditional financial objectives for several reasons.
The risk and volatility associated with watch investments, coupled with maintenance and insurance costs, suggest a misalignment with traditional financial planning principles focused on stability, risk mitigation, and predictable growth.
Luxury watches lack liquidity, making them less suitable for individuals who might require quick access to funds for emergencies or other significant financial goals. The value of luxury watches can be highly speculative, subject to market trends and fashions, unlike more traditional investments like equities or bonds, which are based on underlying economic factors. The volatility and speculative nature of watch investment make it a risky endeavor for most individuals.
So, are watches a good investment? The answer, like the intricate clockwork within a fine timepiece, is nuanced. Carefully weigh the potential risks and rewards and conduct thorough research.
In summary, while luxury watches can be a fascinating and rewarding hobby, they typically do not align well with core financial planning goals for most individuals. Focusing on more traditional and stable investment vehicles is generally advisable, particularly for essential long-term objectives.
About Mike Coady
Mike Coady is an expat expert based in Dubai and is on hand to help with all of the above and more.
Mike is an award-winning money coach and industry leader in the financial sector.
Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Fellow of the Institute of Sales Management (FISM), a Fellow of the Association of Professional Sales (F.APS), a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.
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Blog published by Mike Coady.
