From CNN Money with Walter Updegrave:
My husband and I are 48. A couple of years ago he started buying collectible guns for our retirement and has spent over $250,000 on them so far. I totally disagree with his strategy, but would like to know what you think. Is this a good idea? — D.K., Laramie, Wyoming
I’ve heard of a lot of supposedly sure-fire investments for retirement over the years, including parking lots, fish farms, self-storage facilities and tax liens just to name a few. But collectible firearms…that’s a new one to me.
Let me start by saying I have nothing against the idea of your husband or anyone else assembling a collection of antique or vintage handguns, rifles, whatever. There’s a lot of fascinating history behind them.
But as a strategy for investing for retirement, I have to side with you: I think it’s a bad idea for a number of reasons.
First, unless the $250,000 your husband has spent so far is a very, very small part of a much larger retirement kitty — and I mean something along the lines of $5 million or more — his strategy is seriously flawed because it’s not diversified.
Going lock, stock and barrel into any single asset class is never a good idea. Doing so with a niche investment amplifies the risk.
Read the rest of the article at CNN Money.