In a recent episode of Collectibles.com Unscripted, Tom Ruggie, Founder and CEO of Destiny Family Office, sat down to discuss an often-overlooked aspect of wealth management: incorporating collectibles into estate planning and portfolio management. As a seasoned wealth manager with over 30 years of experience, and an avid collector of sports memorabilia, Tom’s unique perspective offers valuable insights for both collectors and investors. In this episode, Tom shares how collectors can approach their collections not just as hobbies but as integral parts of their overall financial strategies.
Why Treat Collectibles as Assets?
Collectibles like rare sports memorabilia, art, vintage cars, and even unique items like stamps or coins can significantly appreciate in value over time. However, many collectors do not account for these items in their estate plans, potentially leaving valuable assets unprotected. Tom Ruggie highlights the importance of treating collectibles as part of your estate planning process, ensuring they are properly insured, documented, and appraised. He emphasizes that just like other financial assets, collectibles should be safeguarded for future generations or strategically sold as part of a broader wealth management plan.
The Intersection of Passion and Investment
Tom’s personal story brings this idea to life. As both a wealth manager and a sports memorabilia collector, Tom has built an extensive collection of autographed baseball cards, including rare items like Muhammad Ali’s fight trunks from the ‘Rumble in the Jungle’ fight against George Foreman. He explains how his passion for collecting aligns with his professional expertise in wealth management.
For those collectors who may not have considered the financial potential of their collections, Tom offers this advice: think of your collection as an alternative asset class. Whether it’s artwork or rare sports cards, these items have real monetary value that can grow over time, especially if properly maintained and insured.
Practical Tips for Protecting Your Collection
On the podcast, Tom shares practical steps collectors can take to protect and manage their collections effectively. Many of these steps are outlined in the Destiny Collectibles Scorecard, a tool developed by Tom to help collectors evaluate 10 essential aspects of their collections. This scorecard is designed to guide collectors through critical areas such as:
- Documentation of Your Collection: Proper documentation, including item descriptions, photographs, and provenance (evidence of authenticity), is crucial. Without it, your collection’s value may be hard to determine.
- Regularly Appraise Your Collection: The market for collectibles can fluctuate, and certain items may appreciate significantly. Regular appraisals ensure you stay on top of your collection’s value.
- Insure Your Assets: A specialized insurance policy for collectibles is often necessary. This ensures that your items are protected from damage, theft, or loss.
- Plan for Succession: Tom emphasizes the importance of having a clear plan in place for the future of your collection. This includes directives on who will inherit it, how it will be divided, or whether it will be sold.
Estate Planning for Collectors: A Growing Trend
As interest in alternative assets grows, more wealth managers are recognizing the value of including collectibles in estate planning conversations. According to recent market reports, the collectibles industry, valued at over $400 billion in 2022, is expected to surpass $1 trillion by 2033.[1] With such growth, it’s crucial for collectors to treat their collections as part of their long-term wealth strategy.
Final Thoughts: A Smart Approach to Collectibles and Wealth Management
Tom Ruggie’s conversation on Collectibles.com Unscripted is an eye-opener for collectors who may not have considered the full financial potential of their hobby. By integrating your collectibles into your estate planning and wealth management strategy, you can ensure that your valuable items are protected, appreciated, and ultimately passed on or sold in line with your financial goals.
Ready to Learn More?
To hear Tom Ruggie’s full conversation and learn more about the intersection of collectibles and wealth management, listen to the full episode of Collectibles.com Unscripted on Apple Podcasts or YouTube.
The expressed views, thoughts, and opinions belong solely to the host and/or guests and are not investment recommendations or opinions issued by Destiny Wealth Partners or its affiliates. Investment advisory services offered through Destiny Wealth Partners, LLC, an SEC Registered Investment Advisor. Destiny Wealth Partners also conducts business under the name Destiny Family Office, Ruggie Wealth Management, and Nichols Wealth Partners. Rankings and/or recognition by unaffiliated rating services and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Destiny Wealth Partners is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of Destiny Wealth Partners by any of its clients. Rankings published by magazines, and others, may base their selections on information prepared and/or submitted by the recognized adviser. Additional disclosures and other important information on our disclosures page.
