General financial advice would tell you that your sports card collection, or any alternative asset class, should be 5-10% of your portfolio. Wealth management professionals advise such a low percentage because alternative assets can be illiquid, hard to price, and expensive to sell. All three factors might apply depending on the type of cards you collect. While its a helpful rule of thumb, it’s a one-size-fits-all approach to a diverse collector base. Instead, let’s explore how you might assess where your sports card collection fits in your overall portfolio.
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.Before we hop in, there are a few things you should know. The first is how to value your sports card collection. Check this post that explains how to value your cards if you aren’t sure. And if you already know how to value your collection, remember to consider elements like taxes and transaction fees. All set? Good! The second thing to know is what your “Net Worth” is. Since this is a sports card website, I’ll be brief with the Finance definitions.
Assets are things that have value while liabilities are debts you owe to other people/institutions. For more information on how to calculate your net worth, I recommend checking out How To Money’s Guide on Net Worth.
To gain a clear understanding of your collection's worth and overall financial standing, I suggest you pause and calculate both. This simple exercise will provide a valuable baseline, offering essential context about your collection's current position.
Why Should You Care?
Intentional or not, our sports card collections may become a valuable asset. Consistently purchasing cards for years on end might mean waking up one day to realize your collection is now worth five or six-figures. That’s real money. Money that can be used to improve your life, financial security, or realize some dreams outside of sports cards. Setting a threshold you’d like to limit your collection value to is a trigger for rebalancing. Tying that threshold to your net worth allows you to continue to grow your collection while also ensuring your prosperity outside of sports cards.
The Questionnaires
We built a brief questionnaire to help you identify what end of the spectrum you might be on. Are you open to having a high percentage of your net worth in your collection? Or would you feel more comfortable with a lower amount? We’ve made two versions of the questionnaire, one for “Investors” and one for “Collectors”. Choose which one you think suits you best.
Questionnaire for Collectors Who View Their Collection as an Investment
What’s your current financial situation? Do you have an emergency fund? On track with retirement savings? Any credit card debt?
1 2 3 4 5 6 7 8 9 10
Poor Great
Do you believe that the “right” sports cards are as good investments as traditional assets like stocks, bonds, and real estate?
1 2 3 4 5 6 7 8 9 10
Inferior Just as Good
Would you call your collection, “investment worthy”? Do you expect these cards to increase in price over the next 5, 10, or 15 years?
1 2 3 4 5 6 7 8 9 10
No Yes
What is your risk appetite? Am I okay with +/- 30% value swings?
1 2 3 4 5 6 7 8 9 10
No Risk Appetite High Risk Appetite
What are your liquidity needs?
1 2 3 4 5 6 7 8 9 10
High Liquidity Needs No liquidity needs
Questionnaire for Collectors Who View Their Collection as a Hobby
What’s your current financial situation? Do you have an emergency fund? On track with retirement savings? Any credit card debt?
1 2 3 4 5 6 7 8 9 10
Poor Great
Do you have any important life goals you'd like to accomplish in the next 1-5 years that require money you don't currently have?
1 2 3 4 5 6 7 8 9 10
Yes, Substantial No, Collecting is Life
What are your liquidity needs?
1 2 3 4 5 6 7 8 9 10
High Liquidity Needs No liquidity needs
Is the utility or emotional satisfaction I get from enjoying your collection worth the value of your collection?
1 2 3 4 5 6 7 8 9 10
No Yes
Do you feel the need to justify your spending to others?
1 2 3 4 5 6 7 8 9 10
Yes No
Tally up your responses. Lower scores may indicate that you view sports cards as a true hobby. You may get enjoyment out of your cards, but have higher priorities than your collection. Consider establishing a lower percentage of your net worth to your collection and selling off pieces when you hit that threshold. Conversely, higher scores may indicate that you view your sports card collection at the same level as traditional investment vehicles like stocks, bonds, and real estate. You may think of your collection as high quality assets that you’d like to continue to build on. Consider establishing a higher percentage of your net worth to your collection. While these ranges aren’t meant to provide prescriptive guidance, it’s another piece of information for you to consider:
The Hobbyist; Score: 5-19; 1-5% of your net worth
The Balancer; Score: 20-34; 6-15% of your net worth
The Investor; Score: 35-50; 15%+ of your net worth
Other Things to Consider
Questions to Help Contextualize the Value of Your Collection
What is the opportunity cost of keeping these funds stored in my collection?
What sacrifices am I making by continuing to buy sports cards at this rate?
At what level do I no longer feel safe keeping my collection at home? Would I still feel the same way about cards if I stored them at a safety deposit box or vault?
How would my life change if I sold everything in my collection tomorrow? Am I better or worse off for it?
Advice for When You Cross Your Percentage of Net Worth Threshold
If you find that your sports card collection has grown to a level you are not comfortable with, it may be time to take a step back and reassess what you have. Here are a few things you can do:
Take the Collection to Judgement Day: Are there cards you are no longer interested in? Are there cards you think are overvalued? Would you buy the same cards again at the price they’re selling for today? Sell what you no longer need or enjoy. Pick an area to put the proceeds you believe in.
“Rebalance”: Ensure your collection consists of the players and cards you have the highest conviction in over your collecting horizon. Use the proceeds from your sales to get into areas you are underexposed to.
Build out an Emergency Fund and Pay Down Debt: Sell some cards to build additional financial security. Establish an emergency fund that’s able to cover three months of expenses and pay down any high-interest debt.
Balancing your passion for sports card collecting with your overall financial health is key to long-term success—both as a collector and investor. While general advice suggests that alternative assets, including sports cards, should only make up 5-10% of your portfolio, this approach doesn’t necessarily fit every collector. Your personal financial situation, goals, and risk tolerance all play a role in determining what percentage of your net worth should be tied up in your collection.
By taking the time to assess the value of your collection and your overall net worth, you can set a threshold that works for you. Whether you view your collection as an investment or a hobby, having a clear idea of your financial boundaries will help ensure that your love for sports cards enhances your life, rather than putting strain on your financial security.
Remember, it's important to revisit your collection and financial standing periodically to make sure they’re still aligned with your goals. And if you ever find that you’ve crossed your threshold, don’t panic—use it as an opportunity to reassess, rebalance, and reinforce your financial well-being.
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