Let your pension fund mature like a fine whiskey

scott

Scott Sciberras

January 28, 2021

Cask whiskey investment offers private investors the opportunity to purchase casks of new-make spirit, made fresh off the still. The use of cask whiskey has now been approved by self-invested personal pension schemes, so many clients use our whiskey investment portfolio to add a different flavour to their pension plans 

As whiskey matures, its value increases. Distilleries will produce new make spirit, which then must be transferred into casks for maturation. However, distilleries will wait five to 10 years to make a profit on mature stock. To help cover these costs, distilleries will allow private investors to purchase new make spirit through an exclusive broker, such as Whiskey & Wealth Club.  

We have built trusted relationships with some of Ireland and Scotland’s best distilleries. These relationships are what set us apart from other whiskey investment firms and are part of the reason we can offer premium casks at substantially discounted rates 

An alternative for the future

In the past decade, the alternative investment sector has grown consistently, with assets under management more than doubling between 2008 and 2017, and predictions suggesting this will jump by more than 50% to 2023. 

This has been further exaggerated by the Covid-19 outbreak and market volatility as a result. Many of our investors use cask whiskey investment to hedge against economic downturn and to balance a portfolio that may be exposed to more volatile assets. This is because cask whiskey is an uncorrelated investment – an asset whose value is not tied to fluctuations in traditional markets and recessions.   

At a minimum investment of six casks, each cask costs our investors €2,400 – €2,900 depending on the distillery you’re buying from and the specifics of the cask and spirit. This price covers the cask, the 200 litres of whiskey inside the cask (this is a rough guide as casks are made by hand so not all are exactly 200 litres), plus storage and insurance for five years which increases in line with the value 

The whiskey’s title and ownership are registered in your name and as you own the asset, you can sell (or bottle) the whiskey at any time. Investors can expect average returns of 12% to 20% per annum. The price increase is inevitable, providing you buy at the right value; as overspending initially will delay any profit. With the ongoing uncertainty of the wider market, whiskey investment is a lucrative and stable investment option to aid retirement. 

Invest in your retirement 

With whiskey investment, you are in the driver’s seat. When you’re ready to sell, there are several exit strategies for your consideration, including whiskey brands, independent bottlers, private investors and auction websites. As with any investment, a strategy for return needs to be considered from the outset. With a clear guide on investing in the most valuable whiskey, the team are on hand to tailor each clients’ strategy to meet their specific needs. 

 

Our wealth advisors are on hand to support clients looking to invest for their retirement, talking them through potential returns, exit options as well as regulation by HMRC. For more information on investing for your retirement get in touch.  

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