Want to Buy a High-End Collectible? First Check with Your Wealth Advisor.
Palm Beach North enjoys a luxurious lifestyle, with well-educated, multi-lingual professionals thirsty to make smart investments. When PNC Wealth Management senior vice president and managing director for Florida East Gail Horvath meets with clients throughout the 10 municipalities of “Florida’s Prosperity Coast,” people bring up the story of the factory worker who bought two paintings for $25, hung them in his kitchen for 40 years and later found out they were stolen masterpieces’ of French artists Paul Gauguin and Pierre Bonnard, worth $50 million dollars. But those types of finds are one in a million.
It behooves the successful entrepreneurs, Fortune 500 executives, and brilliant scientists, athletes and celebrities of Palm Beach North to actually invest in art and such things that bring us great pleasure and in the end, bring about great dividends.
Horvath explains that as a wealth management professional, she knows there is a wide range of items that some clients consider collectibles in today’s world, ranging from Star Trek action-figure dolls to a classic Coco Chanel dress. But those are the items the general public would collect, not the physical assets that capture the ultra-high net worth individual’s attention.
Some examples might consist of collections of 17th century kimonos, exotic perfume bottles, centuries old manuscripts, and of course fine art. From Horvath’s experience, 15 to 20 percent of UHNW households have a meaningful investment in high-end collectibles and the most successful collectors have a perfect balance of passion, aesthetics and financial savvy.
“Investors should know that items you feel will be worth a great deal in the near future are not always right, which is why you need wealth advisors that can consult with other experts to gauge the value of the purchase you’d like to make,” Horvath said. The most important advice she gives her clients at PNC is, “Buy what you really love because you may have to keep it for a while until your investment pays off.”
Collecting is definitely a combination of passion and return on investment. “For most, the passion for collecting always comes back to a special moment in time that brings back memories of the glory days, a loved one, or an interesting time in history. Be it a found treasure in Italy with your spouse, a gift from a departed parent, or something bought with your first paycheck as you found your independence,” she said.
In these cases, don’t let your emotions steer you away from objectivity. “At PNC Wealth Management, we urge our clients to work with trusted dealers….be it wine, paintings, or Chinese porcelain. The condition, provenance and titling of a piece are paramount.”
Sponsored content courtesy of PNC.