Local
Well-known member
Be dumb considering the return on investment isn't much. Firearms are a decent hobby but storage gets to be a pita.
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collecting tools as a retirement portfolio...
- Thread starter fasteddie313
- Start date
Nick Danger
Well-known member
Used tools are worth less than new tools. Let's imagine that you make excellent choices and buy what future people want, and so you only lose 25%. (Instead of being like a guy who invested in horse and buggy equipment in 1905 or vacuum tubes in 1960).
For the sake of argument, you will need $300,000 to live comfortably for 15 years. That will put your retirement income at $20,000 a year. It's not riches, but you can get by. It if you live 17 years, you will spend your last years on the streets with no money at all.
That means you have to invest $400,000 in tools. At $250 a month, that will take you more than 130 years.
(Oh, and putting your money into gold bullion isn't a great idea either. The government confiscated people's gold in 1933, so why can't they do it again?)
For the sake of argument, you will need $300,000 to live comfortably for 15 years. That will put your retirement income at $20,000 a year. It's not riches, but you can get by. It if you live 17 years, you will spend your last years on the streets with no money at all.
That means you have to invest $400,000 in tools. At $250 a month, that will take you more than 130 years.
(Oh, and putting your money into gold bullion isn't a great idea either. The government confiscated people's gold in 1933, so why can't they do it again?)
SASORacing
Well-known member
You are better off Stashing those $100 bills in a piggy bank than buying tools that will lose lots of value in 20 years.
davethorik
Well-known member
Predict the future.
A guy I know (he is one of those survivalist types, I will give him that, but he is smart) bought a large quantity of AR-15's and parts a while back. When the gun craze hit, he started selling the AR's, he says he quadrupled his investment.
A guy I know (he is one of those survivalist types, I will give him that, but he is smart) bought a large quantity of AR-15's and parts a while back. When the gun craze hit, he started selling the AR's, he says he quadrupled his investment.
JDon99
Well-known member
I pick up most tools at 5%-10% of there cost new 99% of the time..
Buy them and sell for a profit NOW, not later. Use the money for something else.
methomas70
Well-known member
OP- in the future are you planning on selling these tools to collectors or people that would actually use them, as intended, to fix something. Because, if I'm doing the math right that would mean today's kids/teens/twentysomethings will be fixing stuff in the future?
Ha! That's funny, makes me belly laugh, I could piss my pants laughing about that.
Ha! That's funny, makes me belly laugh, I could piss my pants laughing about that.
sberry
Banned
hahahahahahahahaa
Cato
Well-known member
It would be a lot of work to liquidate your tool collection. You or somebody would have to put it out on Ebay and sell it one by one. You'll probably get a ton of folks who will be offering pennies on the dollar to buy it piecemeal or by the lot. There are people out there who love a good deal on old tools. Oh, you'll have to insure it against theft and fire or flood.
Traditional assets are easier to liquidate when you need them. When you're old and senile, it will be hard to wheel and deal to get top dollar. What if they become obsolete, too? Look at all the guys who pass on and their beloved collection of tools which cost tens of thousands of dollars end up being sold by the bucket at an estate sale.
Traditional assets are easier to liquidate when you need them. When you're old and senile, it will be hard to wheel and deal to get top dollar. What if they become obsolete, too? Look at all the guys who pass on and their beloved collection of tools which cost tens of thousands of dollars end up being sold by the bucket at an estate sale.
Audiocrazy28
Well-known member
Not a good idea in my opinion.
sberry
Banned
Would be wayyyyyyy ahead to use Pittsburg wrenches and buy Snapon stock with the difference, in short order wouldn't have to use the wrenches.
3baygarage
Well-known member
To the OP, I have a lot invested in tools. For certain that I won't retire on them.....alone. I mainly collect because I enjoy it.
First off I like your topic.
10 years ago I might have thought they were a good investment for the future based on flea market and Ebay resale value . Things have changed since then. As Snapmom said prices have dropped significantly on a lot of things. Sadly, I've witnessed it too.
As with any collecting(coins, stamps,etc.) only certain pieces are desirable and stay valuable. As some of the others said, you have to worry about storage, rust, re-selling and interest in the future. Not to mention updated versions of tools. To think you'll be able to keep it all that long is a **** shoot in itself.
A few points I've come to realize:
Harbor freight really hurt the local market a lot regarding sales of used quality USA tools for what they ought to be worth.
Most people are not like a lot of GJ members and only buy what they need regardless of brand.
A lot of young people would rather spend money on drugs, games+ electronics and could care less about quality tools. Older collectors and users will disappear but there will always be nostalgia collectors as with anything.
Not everyone is like me and buys tools just because they want them even thought they may not need them.
Cool idea I say but who can predict what happens? Some people looked deep into your question and suggested investment ideas but I invest in faith as well.
First off I like your topic.
10 years ago I might have thought they were a good investment for the future based on flea market and Ebay resale value . Things have changed since then. As Snapmom said prices have dropped significantly on a lot of things. Sadly, I've witnessed it too.
As with any collecting(coins, stamps,etc.) only certain pieces are desirable and stay valuable. As some of the others said, you have to worry about storage, rust, re-selling and interest in the future. Not to mention updated versions of tools. To think you'll be able to keep it all that long is a **** shoot in itself.
A few points I've come to realize:
Harbor freight really hurt the local market a lot regarding sales of used quality USA tools for what they ought to be worth.
Most people are not like a lot of GJ members and only buy what they need regardless of brand.
A lot of young people would rather spend money on drugs, games+ electronics and could care less about quality tools. Older collectors and users will disappear but there will always be nostalgia collectors as with anything.
Not everyone is like me and buys tools just because they want them even thought they may not need them.
Cool idea I say but who can predict what happens? Some people looked deep into your question and suggested investment ideas but I invest in faith as well.
woody 73
Well-known member
knee deep in rat turds looking for a few old gems (not the rat turds) priceless.
Investment never.
Thrill of the hunt again priceless.
Not for everyone.
Investment never.
Thrill of the hunt again priceless.
Not for everyone.
David Jackson
Well-known member
I was once told "Tools are an extension of a man's hands." Whether or not that translates into money for retirement is another question.
I like tools, as most posters here I hate to sell any as they are that extension mentioned.
I like tools, as most posters here I hate to sell any as they are that extension mentioned.
chadster1
Well-known member
Want to make enough money to retire buying and selling tools? Buy a Snap-on tools franchise. That is what I did.
www.snapon.com/franchise
www.snapon.com/franchise
OP
fasteddie313
Well-known member
OP- in the future are you planning on selling these tools to collectors or people that would actually use them, as intended, to fix something. Because, if I'm doing the math right that would mean today's kids/teens/twentysomethings will be fixing stuff in the future?
Ha! That's funny, makes me belly laugh, I could piss my pants laughing about that.
good point...
jwsia
Well-known member
investment grade guns have done very very well over the last 40 years but tools? If you get good deals flip them NOW. Put your money in a ROTH or pay off you debt
Gregg33
Well-known member
Along the lines of what Chadster said the only way you can invest in tools for retirement is to be a dealer or buy used for cheap and sell shortly thereafter for higher. Take that profit and bank it or put it into other investments to use in your retirement.
Something to consider is that while just about every collectible...figurines, baseball cards, comic books, die cast, even tools are a money losing venture (unless it's that 1 in a million item or unless you buy for pennies on the $), there is another aspect to consider. Just about everything I've collected in my lifetime has given me pleasure and I met interesting people from that particular hobby. Some of the things I collected I got tired of and sold for 1/4 of the value I paid, sometimes even a 10th of what I paid. But when you look at the big picture there are more foolish things to do with your $!.......drugs, booze, smokes, eating out, travelling, hookers lol, dates that don't work out, gambling etc. This is all basically $ down the drain, (other than some good memories), the collectibles at least you are getting something back if you decide to sell. Plus more often than not, everything is long since paid for, so in a way even if you get 10% of what you paid it's still $ in your pocket. Just my 2 cents
Something to consider is that while just about every collectible...figurines, baseball cards, comic books, die cast, even tools are a money losing venture (unless it's that 1 in a million item or unless you buy for pennies on the $), there is another aspect to consider. Just about everything I've collected in my lifetime has given me pleasure and I met interesting people from that particular hobby. Some of the things I collected I got tired of and sold for 1/4 of the value I paid, sometimes even a 10th of what I paid. But when you look at the big picture there are more foolish things to do with your $!.......drugs, booze, smokes, eating out, travelling, hookers lol, dates that don't work out, gambling etc. This is all basically $ down the drain, (other than some good memories), the collectibles at least you are getting something back if you decide to sell. Plus more often than not, everything is long since paid for, so in a way even if you get 10% of what you paid it's still $ in your pocket. Just my 2 cents
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Steinmetz
Well-known member
Would be wayyyyyyy ahead to use Pittsburg wrenches and buy Snapon stock with the difference, in short order wouldn't have to use the wrenches.
The only ones retiring on tools are the owners of Harbor Freight.
Marc Benjamin
Well-known member
I doubt that the OP is really serious about the idea on building a retirement portfolio on tools.
It's a funny topic and well done on humoring the old chap though!
It's a funny topic and well done on humoring the old chap though!
ZRX61
Well-known member
Not a hope in hell.
nicksnothereman
Well-known member
Start an emu farm. That's actually more reasonable than your plan.
Fretters
Well-known member
Even if the idea was sound financially, (which it isn't, btw. There's absolutely no way of knowing what might be desirable later on and what won't), it would **** generally. Never been overly subtle in my opinion of investor collectors. It screws things up for others who actually collect things through genuine interest, desire etc., and then some numpt or two who can throw money around like it's going out of fashion come along and makes it nigh on impossible for other people to get things without paying a kings ransom for it. Too many hobbies and pastimes have been screwed up for some by that type of person. There's a big difference between buying, restoring and selling something and just buying and storing stuff in the hope you can make a killing from it later on. I know it's the way the world works, but it doesn't make it any less irksome when you see it or get caught out by it. It's almost as bad as the people who buy vintage or antique equipment in practically perfect order and then split it for parts so they can make more money from it.
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getahammer
Well-known member
Craigslist is full of retiring mechanics who can attest to the fact that it's not a good idea. Selling all your tools at once is a losing proposition. Selling them one at a time? Well, you'll probably die of old age before that's accomplished.
OP
fasteddie313
Well-known member
I doubt that the OP is really serious about the idea on building a retirement portfolio on tools.
It's a funny topic and well done on humoring the old chap though!
quite a good sum of the intentions...
tjpavlov
Well-known member
I'm going to buy Reynolds Wrap stock. I think that there are going to be a lot of people needing hats.....
There is a guy here locally that tried, and is trying to do this exact thing. I go pick over his stuff every now and the. He really has a ton of stuff. More like tons.......that old boy has got to have 20 years behind a wire wheel. He said its all garage sales and auction bought. For next to nothing. Cleans it up and sells it. He says it is not going like he planned. He puts signs out like garage sale signs, and the police hassel him......they say he needs a business licence. He is no longer buying. Just trying to sell it alll before he dies. Nice guy, he has poured a good amount of time into this, and its not going well. I feel bad for him. Part of the problem is alot of old tools in our area were thorsen, indestro, truecraft......decent stuff, but no longer available. People who dont care about matched set, will just buy the cheapest new stuff. People who do care about matched set wont buy stuff thats not made anymore. He has buckets of cee tee and diamond pliers........but no crecent wrenches. He is priced cheap as well. He also has plenty of import stuff, and priced for next to nothing.......but if I gotta buy import, why not buy one with a warranty? A set of kobalt sockets is dirt cheap, usable, and easy to warranty. I drew my brother in law last christmas for family present time, so I asked what he wanted. He said a small socket set. I got him a kolbalt 3/8 and 1/4 deep and shallow metric and sae, for 39.99. Why would I buy used? Its a no brainer. I dont use much kobalt as a pro (a couple extensions) but for any homeowner they are great.
OP
fasteddie313
Well-known member
I also thought a bout a tools only consignment shop...
I worked for a while for an interior designer and organized her 35,000 sq/ft showroom that was all furniture consignment, so I know the business, and I can have copys of there legal contracts that make it all legit and covers ***..
I worked for a while for an interior designer and organized her 35,000 sq/ft showroom that was all furniture consignment, so I know the business, and I can have copys of there legal contracts that make it all legit and covers ***..