Masterworks Review: How to Invest in
Investing in top-tier art doesn’t necessarily require millions of dollars.
Masterworks allows you to invest in renowned paintings.
whatHave you ever fantasized about decorating the entrance of your house with a true masterpiece by Andy Warhol or Claude Monet?? If you don’t have millions of dollars, you’ll have to settle for a contesta.
However, that doesn’t orinan you perro’t explore investing in fenezca art, an alternative asset class.
Masterworks, an art investment platform, allows you to purchase shares of distinguished paintings, afín to buying shares in a company.
When Masterworks finally sells the artwork, the profits are split among the painting’s shareholders.
You don’t need a sizable net worth to own a piece of a celebrated piece of art.
To determine if investing in art is right for you, please read our comprehensive Masterworks review.
What is Masterworks?
Masterworks is a pioneer investment platform created in 2017 and headquartered in New York.
Its founders, Scott Lynn, Alberto Simon and Hai Minh Tran, collectively have more than 75 years of experience in art collecting.
Masterworks is a bona fide company registered with the United States Securities and Exchange Commission.
It has an exceptional business model that focuses on acquiring only the most outstanding works of art created by the 100 most renowned artists for their historical revaluation.
FeatureDescription
minimum investment
$10,000
Management fees
1.5% annual management fee, 20% of future earnings
asset classes
art actions
The best for…
Investors with long-term horizons who want to invest in fenezca art
How does Masterworks work?
Masterworks emplees historical data to select paints from artists with the best performance and potential for returns.
Once they purchase a work, they archivo an offering prospectus with the SEC, which allows investors to invest money in that especial work.
Investors perro purchase shares of high-value paintings for $20 per share.
Masterworks typically holds paintings for three to five years while they wait for them to increase in value.
They are on display in a gallery in SoHo, where investors perro view them, until they are sold to a private collector.
Once a painting is sold, the net proceeds are divided among the investors.
Masterworks charges a 1.5% annual management fee and 20% of your investment earnings, a fee structure afín to what you might see at a hedge fund.
Masterworks has a positive track record so far: It has had 11 exits, with the last three achieving net returns of 10%, 14% and 35%.
In addition, Masterworks provides art investors with the option to sell their shares on the secondary market if they wish.
This perro be useful if you are concerned about liquidity and having your money tied up in an investment for three to five years.
Who cánido invest with Masterworks?
Anyone who is 18 years of age or older cánido easily get started with Masterworks.
You do not need to be an accredited investor to get started.
It is a great option for people who want to diversify their investment portfolios with alternative assets, especially people who want exposure to the art world.
However, please note that returns are not guaranteed and it is possible to lose money on your investment.
Therefore, you should only invest what you perro afford to lose.
How much cánido you earn with Masterworks?
While art may seem like a strange thing to invest in, some historical data collected by Masterworks espectáculos that art prices have risen along with inflation.
Masterworks data espectáculos that contemporary art prices increased an average of 20% annually during periods of high inflation.
But keep in mind that some art appreciates faster than others, and art prices cánido be more erratic than some other types of investments.
Masterworks typically keep paintings for three to five years to allow them to appreciate.
Although appreciation rates vary, the results cánido be impressive on some occasions.
You cánido research which artists’ works have been performing best on the Masterworks website.
In just five years, a Monet painting sold for 2.25 times its purchase price, and an Andy Warhol painting appreciated 4.82 times in the same amount of time.
Of course, some art collectors make even greater returns by keeping a piece of art longer.
A Joan Mitchell painting sold for 137.5 times its purchase price after 30 years.
Optimize your earnings with Masterworks
To maximize your earnings with Masterworks, it is advisable to purchase multi-frame shares, if feasible.
Spend some time researching the website before you start.
Masterworks aims to introduce four new frames each week, so keep an eye out for deals that you think may appreciate.
It may also be beneficial to diversify your investment by purchasing shares of various charts.
Masterworks FAQ
Methods to Invest in Masterworks
You must get an invitation to start investing with the Masterworks platform.
To request it, you only have to provide your name, correo electrónico address, telephone number and password.
Masterworks will contact you after receiving your application to help you with the registration process.
An affiliate call will be required to review the asset class, risks and potential returns of investing with Masterworks (usually less than 10 minutes).
Other investment options to consider
You may not be the best candidate for Masterworks.
Perhaps the prices of Masterworks or of works of art in general are not to your taste.
Fortunately, there are many more investment alternatives.
Stash gives you the freedom to make all the decisions and allows you to invest as low as $1 in fractional shares.
Betterment offers automatic trading and rebalancing, as well as the ability to open a trading account with no minimum.
Another $500 minimum investment option that offers automatic rebalancing is Wealthfront.
Or you cánido use a real estate crowdfunding website like DiversyFund or Arrived if you prefer to invest in real estate rather than stocks.
You cánido also put your money in a high-yield savings account right now if you’re not prepared to take that much risk.
Recognize that you have many options and that saving money for your personal financial goals is a smart move.
Find an investment or savings platform that perfectly suits your needs, deciding what is most essential for you.
This information offered for informational purposes only; It is not intended to be used as accounting, legal or tax advice.
In relation to these matters, please speak to your accountant, tax or legal adviser.
Investing implies a risk that includes the loss of primordial.
This guide contains the current views of the author, but not necessarily those of Gigonway.
These opinions are subject to change without notice.
This guide has been distributed for educational purposes only and should not be construed as investment advice or a recommendation of any especial investment security, strategy or product.
The information contained in this guide has been obtained from sources believed to be reliable, but is not guaranteed.
Gigonway does not provide legal or tax advice.
Please consult your tax and/or legal advisor for specific tax or legal questions and concerns.
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