Maybe you have a million dollar coin or just a coin you found in a parking lot, but do you list your collection as an asset in net worth calulations? If it is at least 5% of the worth of all your worldly possessions, and if they came from the reject bin, should they be listed? Or maybe you have several million dollar coins but you prefer to be referenced as a peasant.
Interesting question. For home insurance purposes, I list my collection and have rider for them in my policy. For my estate, I don't, as I don't want my estate valued higher because of them, not that my collection would do that. LOL Just saying.
I haven't borrowed money in a long while but recently a piece of property became for sale and I made an offer that was accepted. A local bank is working on the financing. Not tooting my horn, I could pay for the place outright, but would have to wait and save for a while to build what I want on it or borrow and do it now. The other option would be to finance the property and use the cash I have in hand to build with. The latter is what I am leaning toward. I never have thought of my collection or my many endeavors into coveted things as holding much intrinsic value until recently. I have accumulated a lot of junk.... I mean stuff through the years that has also accumulated value. If you were to have to list your assets and liabilities for say a bank loan, would you guess at a value of your collection and list it as well? Now that I think about that question, my wife would probably list it as a liability, and maybe I should too.
I can't imagine any bank I've dealt with ever asking me "what's your net worth?", frankly. The only collateral I've ever been asked to provide is financial assets, stocks, etc. Not even my house, let alone stuff in it. But if one did, I'd ask them what their definition of Net Worth is, knowing that they think those assets are somehow a guarantee for the loan.
If you are planning to convert it to cash you will be living upon, yes. If you intend on passing it along substantially intact or to be disposed of after death, no. If you list it as an asset, money managers are going to want to convert it to cash that they can invest in whatever it is they want to invest in.
If you can finance the raw land, it will be based on your credit ie FICO and your income. Hard to finance raw land Sometimes a private party will finance the raw land at a higher short rate. It’s a ‘Hard money loan’ I’ve been a hard money lender a few times. Wish I could have taken back a couple properties After you own the land banks will line up to finance the structure. Before that, not so much
If you find a coin in a parking lot, and people, who know what they are doing, tell you it has significant value, it’s a part of your net worth. When I lived in the Boston area, I knew a collector who pulled a number of 1955 doubled die cents from circulation in the mid 1950s. He had one cent in those pieces, but they had a value of $55 in 1959. They are worth what the market says they are worth, not one cent.
