Your Kid's Legos Will Supposedly Make You Rich: What You Need to Know

Lego minifigs and coins

When you have kids, chances are you have Legos -- EVERYWHERE, from your vacuum cleaner to the bottom of your foot. And they're costing you a fortune. But good news! Your kid's Legos could be a solid investment.

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After doing some number-crunching, the peeps at the Telegraph are positing that Lego sets -- in pristine condition, mind you -- are a better investment than buying gold or playing the stock market, not to mention simply squirreling your money away under a mattress or in a bank.

The Financial Times Stock Exchange (FTSE) is a share index of the 100 companies listed on the London Stock Exchange. And apparently, over the past 15 years, it gave investors a 4.1 return investment. But like-new Lego sets? Twelve percent per year, baby.

Twelve is bigger than 9.6 -- the return on gold. And the Dickensian low of 2.8 that comes from a savings account.

Plus, if you've ever tried to buy really cool, old Lego sets for your kiddo, you already know that they go for laughably large sums of money on eBay.

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So, should you immediately take out a second mortgage on your house to buy up as many Star Wars Lego sets as you can? Then put them up on a high, high shelf, and forbid your children from EVER opening the boxes?

Not so fast, says Stephen Alred, Jr.,  founder of Ignite Financial, a financial planning firm in Atlanta, Georgia. For starters, you better make damn sure that you're as Lego-crazy as your kiddos. Maybe even more.

"I would never advise people to make an investment in collectibles like stamps or fine art without being passionate about what they're collecting," Alred explains.

To be able to accurately anticipate how much money a Lego set today will bring you X years down the road, "someone would have to have tons of experience buying, selling, and building with them," says Alred. "[That way] ... they can begin to see patterns, like 'Has anyone ever seen Lego Star Wars collection #5?' or 'I can't find the first edition of Superman Lego set anywhere.'"

In other words, to make bank, you've got to be super-savvy about supply and demand. And "it would be really hard to get to that point without being passionate," Alred notes.

And even if you DO live and breathe Legos, it's hard to predict where the market will be years from now. After all, the Telegraph used a relatively short time frame of 15 years.

"Remember the price run-up for Beanie Babies and Cabbage Patch dolls?" asks Donn Pearlman of the Professional Numismatists Guild, a nonprofit composed of some of the top rare coin, paper money, and precious metals dealers in the US.

Pearlman adds, "Today, the only rarer thing than most Beanie Babies is trying to find someone willing to purchase it from you for more than you paid for it."

If you still can't shake the idea that there's gold in those Ninjago sets, do your research at a site like Brick Picker before you buy. But it might be more fun to just buy a set your kids want and play with them now.

 

 

Image via iStock.com/simone mescolini

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