Wine Cellar and Net Worth

WINE TALK
1

Working through and updated cellar inventory and after years of “zen/head in the sand” cellar management, I am a tad shocked at the value of my wine as a percentage of my net worth – upwards of 10% at current “value”. Okay, there is no countervailing mortgage, but still rather large numbers and percentages for such “liquid assets”. I may follow up with a poll if I can figure out how to do it, but wonder what percentages of net worth of other board members tied up in their cellars (without reference to absolute vale of either).

More important, do your cellars figure into your financial planning? Are your cellars insured? I understand that general liability home owner policies, policy riders or separate policies may cover damage. I checked and found little here (searching on “cellar” and “insurance” but apologies if I missed a good thread) but recall researching this about 10 years ago and seeing reference to Chubb (I think) and others. Thought a refresh might be useful…

Able to post because SWMBO had no idea about the number of bottles in the cellar ( a good thing) but an uncanny sense of absolute value. Interesting given her aversion to “expensive wines” but tendency only to want (i.e., waste the calories on) “the good stuff”. Think I need to get in tune with SWMBO expectation management as well as cellar management.

Any thoughts would be appreciated…especially on that last point!

2

Mitch Tallan has the info you need, or at least give you a tough time for not searching better…


:slight_smile:

3

Depends how you calculate net worth, but yeah upwards of 10%… :wink:

4

The value never factors into my equation. I buy to drink and really do not think of a consumable commodity as an “asset” even though I realize that the wine market may.

5

Last time I calculated it, it was less than 5%. Probably closer to 3%. This only accounts for the purchased wine and not the home made stuff or the cost of vines, equipment, my labor etc. but even if I include it I don’t believe that it would cross above 5%.

6

I have my wine cellar insured. But, I don’t think of it as part of my net worth, I think of it as a consumable not something I will live on.

7

My net worth is adequate for me to consider myself financially secure. Therefore, my cellar value does not need to be considered in any conversation about assets (I agree with Howard on that).

Cheers,
fred

8

Completely agree on not counting cellar in net worth (particularly give the relative illiquidity of this liquid asset)…and I have reached out to Mitch for the requisite beating…

9

My cellar value is higher than my net worth.

10

Len Evans theory of capacity. Point 9.

What part is wine of your life? Ten percent? Ergo, 10 percent of your income should be spent on wine.

11

There is nothing I can say in this thread that would end well for me if found in a Google search. :wink:

12

Interesting concept. So - for many of us here - you’re saying we should spend 100% of our income on…W I N E?!?! [swoon.gif] Híjole!

13

I think as it pertains to my net worth minus my homes im at 2.4%. I own 370 bottles right now and for the last fee months i realize i have too much money in wine. Im definatly going to use the 2015 vintage to bring it down.

14

Ha, does that include your gorgeous mansion in Burgundy!? [cheers.gif]

15

2%, which according to She Who Must Be Obeyed, is about 1.95% too much.

16

.4%

17

It is currently ~2.25%. Our purchases have exceeded consumption by a considerable margin over the last ten years. But, having just turned 72, this will decline to under 1% over the next ten years. The collection is insured separately and outside our homeowner coverage. It is not mentioned in our estate planning but there is a private understanding with our children as to its disposition when we are gone.

18

These are great comments. And please understand the dual-basis of the inquiry: the proportionate extent of the “investment” in the hobby (without any judgment whatsoever) and how to protect it. My own buying was driven by a few factors: (i) YCS - Young Cellar Syndrome - and the desire to front-load buying to have aged and age-worthy wine begin coming on line; (ii) SBBs - Sentimental Buying Binges – anniversaries, birth years, etc. with hope that the additional meaning may offset not buying only the best of the best vintages (and the lack of college savings); (iii) HV - Horror Vacui – developed by Greek philosopher-physicist Parmenides with inspiration from Dionysus, loosely translated: nature abhors an empty cellar; and (iv) HTM - Hunt for Thermal Mass - think of all the electricity saved on cooling with a full cellar!

19

[welldone.gif]

20

One other “problem” I have is valuing my cellar. I have a decent amount of older wine that has appreciated a good bit. While CellarTracker helps with more widely held wines like 1982 Bordeaux, it is almost useless in valuing a lot of my older Burgs.