Investing in Shoes

In today's economy, knowing what to invest in can be complicated, overwhelming, and downright confusing. When given the choice between a 2030, 2040 and 2050 mutual fund, what to choose? First of all, what is a mutual fund? (I know I didn't see that in the fall trends catalog.) 

According to my 401K provider, "Funds, also called target date funds, are all-in-one investment strategies that can help take the guesswork out of building and maintaining an age-based retirement portfolio." 

Ok, that makes sense. So, pick the freedom fund targeted at the date you would like to retire. If given a choice, I would choose to retire tomorrow. But, since that won't happen, I guess I will wait another 30 years. Sigh.

Ok, let's get back to shoes, and making smart investment choices. Can shoes be as effective an investment as stocks or bonds? Lets take a look at the following new fall Fendi shoes.

http://www.saksfifthavenue.com/main/ProductDetail.jsp?

PRODUCT%3C%3Eprd_id=845524446612761

Ok, these shoes are $1,700 at Saks.com. (For those of you who have fallen out of your chair at the thought of that price, pull yourself back up to the table.) After you have pulled yourself up off the floor, you are probably still asking the question, "why on earth would you spend nearly two grand on a pair of shoes that look like they belong in the zoo?" Well, that's a good question.

Have you ever read Investing for Dummies?

Well, neither have I - but the answer is less complicated than you think. Let me introduce you to the "Shoe Investment Calculator" - otherwise known as SIC. SIC is an amazing tool (developed by me) to help determine if a shoe is really worth the investment. It works for any shoe, at any price and is customized for your shoe wearing preferences. Let's take a look at the calculator:

Shoe Investment Calculator (SIC)

So, the SIC takes into account several factors above, and assigns different values to each factor. The formula is complicated, but trust me, it always gives accurate, non-biased results. One caveat is that when you are inputting your information,  be realistic about how often you believe you will wear these shoes, and the life of the shoes. Those are critical factors when determining whether to sell, hold or buy.

The next blog will take a look at the following shoes, and go through each equation to determine the fall season investment strategy for your closet. I profile a splurge and steal pair of blue heels, a trendy high top tennis shoe, a fabulous Isabel Marant boot and my zoo shoes.

Stayed tuned....in the World of Cha Cha Shoes

Isabel Marant Crisi Boot

Payless Blue Pump

Manolo Blahnik Blue Pump