How fine wine can help you build a pension strategy

by Jul 8, 2020News, Wine Trading Academy0 comments

Fine wine can work as an alternative investment strategy that can yield great returns for the long term

Fine wine can work as an alternative investment strategy that can yield great returns for the long term

Dear reader,

People who have been following the articles and posts by the Alti Wine Exchange team are increasingly aware of how investors can heavily profit with wine trading and building a portfolio out of their passion for fine and rare wines.

However, not many are aware that, by looking forward, there is a strategy to invest in fine and rare wines apart from building a collection or merely to enjoy profits in the long term.


How can fine wine can be a valuable investment asset?

Yes, wine trading can be an important part of a strategy for your pension.

It could sound crazy to some, but it’s way simpler than you think. Let us show you how and why.

In easy terms, collecting fine and rare wines as part of a pension strategy requires simply buying the finest age-worthy vintages. The kind of wine that will stand the test of time, getting only better as time goes by, and that is properly stored. The best wine.

That’s where we come in. The goal of Alti Wine Exchange is to provide only the greatest fine and rare wines, sourced straight from acclaimed producers and highly rated by the most prestigious critics in the business.

It’s easy to start with as little as a 70-euro initial investment. Just as an example, fine wines that we have been launching, such as earlier initial bottle offerings (IBOs) like this 2007 Riesling Beerenauslese from the oldest winery in the world or an ultra-premium Chilean Syrah.

All you will need to do then is regularly buy bottles of the finest vintages and let time do the rest.

Unlike a regular pension, this “wine pension” will not pay you monthly checks when you go into retirement. With your initially invested capital multiplied by the growing demand for these fine wines that are ever shorter on supply, all you will need to do is sell your precious portfolio – or as many wines as you decide to.

A matter of devaluation

But such a “pension” strategy is based on a point that many overlook: inflation, an issue that our founding member Paulo Pinto has been referring to in his wine investment articles. If, for example, Central Banks seek to maintain yearly inflation at around 2%, this will mean 2% of currency devaluation a year.

Where does this lead us? Off to a good start, given that wine is a consumer product that works as an alternative investment.

Such currency devaluation effectively compounds your investment 2% a year – something equivalent to a high-dividend paying stock in the market, as Paulo clarifies.

Just as an example: if you invest 300 euros a month in wine, you will have 36.000 euros in wine after 10 years – assuming the price of the invested wine(s) has not changed. If your wine portfolio has appreciated only 2% a year (the same devaluation of the currency seen above), you will gain another 3.910 euros.


Watch the video to understand the basics of fine wine investment


Given that your wine portfolio will be made of vintages that rise in quality as time passes and carry an increasingly favorable supply-demand imbalance for you, these returns will be multiplied even more when you sell these wines – which you can do with Alti Wine Exchange without even having to redeem them. Simply because of the expectable rising demand for these fine (and rarer) wines.

See how our some of our recently launched fine vintages from Boërl & Kroff and from top Portuguese producers have been multiplying in value already.

And the best is that these returns come without any speculative rolls of the dice – because you invest in existing wines, a product you could take home and drink, never concerning yourself with earnings, market volatility, or any other crisis of the day.

* * *

Since Alti Wine Exchange brings only wines that are among the best in the world and guarantees full safety and storage for your bottles, you can be sure to have wine working for you without concerns. Read our FAQ to learn more.

Who wouldn’t want such a wealthy retirement?

Of course: fine wine must not be your only means of multiplying your income to build your pension and retirement, as diversification is key and alternative investments really shouldn’t take more than 5% of your portfolio. Keep that in mind.

PS.: To know what makes a wine be considered fine wine, such as the ones we trade on our platform and marketplace, here you go.

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