Reply to Your income, HHI, and spending on “luxuries”

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Our HHI is around 800K.

I think it's important to realize that certain luxury brands hold their value or go up in value, so I treat these as investments not as expenses.

For jewelry, Van Cleef and Cartier hold their value very well. For bags, the classic Chanel flap bag and the Hermes Birkin (if you can get your hands on a new one) have appreciated at the same rate as the S&P 500.

So it depends... would I "waste" $2500 on a Gucci or YSL bag that will lose more than half its value in a year? probably not, but I will save up for a small piece of Van Cleef jewelry for $5000. The former is an expense, the latter is an asset.

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I hope you don't make 800k giving financial advice. [/quote]

What a strange post.  This person actually gave great examples of instances where an expense can actually be an asset that appreciates, or at least doesn't depreciate that much.  PP wasn't suggesting anyone invest $1MM in Birkin bags, but rather, some things have a decent up-front cost...but then you can resell that bag and buy a new one and keep doing that.  You do that 10x and maybe you spend $5,000 for the first one, but you enjoyed 10 new bags and effectively paid $0 for it when you resell he 10th bag.
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Bags and jewelry are depreciating assets. I don't care what you want to trick yourself into believing. The idea that you are going to make money off a 5k necklace is absurd. People with real wealth aren't buying rinky dink mass produced jewelry as an investment, and saying you do makes you look like a poorly educated rube. [/quote]

Actually, it makes you look like the rube.  Clearly, you don't have the $$$s to play this game, so you make yourself feel better by posting like you do.

Here are quotes from a 1/12/2024 WSJ article:

For a handful of luxury companies, resale values are flattering as buyers pay up to avoid waiting lists. On average, used Hermès handbags are 25% more expensive than new ones, and scarce designs get an even higher premium. A basic Birkin 25 bag, which costs roughly $10,000 to buy new in one of Hermès’ U.S. boutiques, will set shoppers back $24,000 or more from major resale dealers like Privé Porter. Similarly, used watches made by Rolex and Patek Philippe sell at average premiums of 20% and 39%, respectively, based on data from WatchCharts.

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My hhi is in the seven figures and I have no interest in buying things just so people know how much money I have, because I'm not an insecure ahole. Beyond that, I was specifically replying to the PP (you?) who said they would "save up" for a 5k VCA necklace because it's an investment piece.

1. If you have to save up for it you can't afford it
2. The definition of an investment is that it makes you money. VCA may hold its value but no one is buying used pieces for more than retail. 
https://nationaljeweler.com/articles/2303-which-jewelry-brand-has-the-highest-resale-value

I suggest you save your money and spend it on therapy to address your self esteem issues. [/quote]

Wow...you are a little triggered, no?  When confronted with some actual evidence vs. your conjecture, you respond with tremendous vitriol.

You actually do sound like an insecure a**hole because you don't even know how the luxury market operates.  I am actually not the PP, but as someone who is wealthy, understand that there are actually many non-liquid markets (antique coins if you understand what you are doing, rare cars, etc.) that are quite lucrative.
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