How Much Are Old Records Worth? Here’s What We Found Out

Money sits on top of a record in a record player.


Getty Images and Ken Lyons/The Penny Hoarder

When it comes to selling your old records to make extra cash, don’t get your hopes up.

And know this: Condition matters most. Frank Sinatra matters least.

“At one time the shelf that held all the Sinatra albums was 70 feet wide,” said Doug Allen, owner of Bananas Records, which is based in St. Petersburg, Florida. “We have way too much of that.”

What Bananas Records buys and sells the most are classic rock ‘n’ roll, punk and jazz albums. And that’s for around $5 — if the album and the cover are in great condition.

“Records don’t compare to coins and stamps and books,” Allen said. ”There’s not really anything that’s worth $100,000 or more.”

Many records that sold in the millions are still popular with collectors and album buyers, but so many copies are still in circulation that they don’t sell for much.

On the other hand, records that only sold 20,000 copies — jazz from the 1950s, early punk rock — may be worth more. Allen has seen jazz albums from that era, such as early Miles Davis, go for $500 to $700 a piece, while classic punk might sell for $50 to $100.

Most record collectors these days are between the ages of 18 and 35, and used record dealers will try to buy records that will appeal to both avid collectors as well as other, more casual buyers.  That includes artists like Jimi Hendrix, Pink Floyd, David Bowie and John Coltrane.

“There are still some Beach Boy fans out there,” Allen said. “There’s some country that’s worth something. Early Hank Williams. Some Johnny Cash.”

Allen would pay around $3 to $5 an album for these in good condition. He noted that Michael Jackson albums in good shape are selling.

“Two weeks after his death you could sell anything you could get your hands on for $30 to $40,” Allen said. “Now they are worth about $7 to $10.”

However, don’t bother bringing your Neil Diamond, Barry Manilow or Elvis Presley records.

“These kids who are buying records today, many of them have never heard of Elvis,” Allen said. “That era is gone.”

This three part photo shows the album cover and the actual record of Sonny Rollins, who is considered one of the most important jazz musicians in America. The record retails for $1,000 at Banana Records. Then there is a portrait of Doug Allen, the Banana Records owner, with his warehouse full of records. Some are on shelves while others are in boxes.
Doug Allen, bottom, co-owns Bananas Records with his wife, Michelle Allen, not photographed, which is one of the largest vinyl record retailers in the world with about 3.5 million records. Sonny Rollins, top, is considered one of the most important jazz musicians in American history. His sixth album, Saxophone Colossus, is selling at Bananas Records for $1,000. Chris Zuppa / The Penny Hoarder

An Album’s Value Is About More Than the Music

Other factors affect the value of an album, including a record label or address of the recording studio, which can indicate if it’s a first or second pressing; the country in which the album was released; and whether the album was autographed.

The condition of the album cover is as important as the vinyl itself. Water damage, tears and marks can all decrease an album’s value. However, Allen and other collectors frequently buy the album alone if it’s in good shape and the cover isn’t, and vice versa.

Allen advises anyone who is trying to sell their collection to take it to their local vintage record store and have them take a look and let you know what’s worth money.

One couple recently brought two wheeled suitcases full of albums into Bananas Record, and they were able to sell many of them for a total of $60.

Here’s What Your DVDs and CDs Are Actually Worth

What about DVDs, CDs and even 8-tracks? Allen and Genny Stout, manager of Bananas Records,  have some guidance for anyone trying to unload their old movies and music.

CDs

CDs are less popular each year, as there are fewer cars with CD players. Stout usually pays 25 cents for them.

DVDs

Stout will offer up to 50 cents for DVDs from the ‘80s and ‘90s that aren’t very common. This does not include romantic comedies and blockbusters like “The Matrix.”

“Nobody wants to buy romantic comedies, or all the Adam Sandler movies,” Stout said.

A Disney classic in good shape might bring $1 or $2.

“Most of those are destroyed because people let their children put them in and out [of the DVD players],” Stout said.

VHS 

“We haven’t purchased those in 5 to 6 years,” she said, adding that it’s hard to find non-profit retail stores that accept them.

8-Track

“I would say there’s no market for them with the exception of a cult following,” Allen said. “Maybe a KISS 8-track, something you wouldn’t expect.” Those might bring in $10 to $15.

Katherine Snow Smith is a contributor to The Penny Hoarder.

Source: thepennyhoarder.com

This Often-Overlooked Way to Fund Your Roth IRA Has Many Advantages

A Roth IRA is a uniquely powerful retirement savings tool, because you won’t pay taxes on the money you withdraw during retirement. An annuity is a way of generating guaranteed income. Put them together, and you have a powerful retirement protection tool that can provide guaranteed income for life, with a big plus: It’s completely tax-free.

Anyone may roll over part or all of an existing Roth to a Roth annuity.  You may transfer all or part of the funds in an ordinary Roth to a Roth annuity. While there are income and contribution limits for new money going into a Roth IRA, they don’t apply to rollovers — including rollovers to a Roth annuity.

Different types of annuities accomplish different things and have distinct pros and cons — like the Swiss army knife of personal finance. Since they’re so varied, one type or another can work well for a Roth IRA.  Investment choices, fees and contract provisions vary, so work with an annuity agent who will educate you about your choices and clearly lay out the pros and cons.

What kind of annuity works for a Roth? It depends on which stage of your financial life you’re in. In the accumulation stage, you’re building wealth for retirement. In your decumulation stage, you’re retired and receiving income from your savings.

Here’s how Roth annuities can work in each stage.

Building wealth for those approaching retirement

One attractive option is a fixed indexed annuity. With the stock market continuing to break records, it may be vulnerable to a major long-term downturn. When you’re young, you can ride out the ups and downs. But if you’re in your 50s or 60s, you may want to get growth potential without taking the risk of losing Roth money you’ll need during retirement. If so, an indexed annuity might be a good choice for you.

It pays interest based on an underlying market index, such as the S&P 500 or the Dow Jones Industrial Average. While the interest earnings are locked in, up to a stated cap (you may not get all of the upside) each year, you’ll never lose money when the index declines.

While indexed annuities are linked to one or more underlying market indexes, their value does not vary from day to day. Instead, they pay a varying amount of interest that is credited and locked in each year on the anniversary date of the contract. Since equity markets can be volatile, indexed annuities are designed to be held long-term, whether yoked to a Roth IRA or not.

A fixed-rate annuity — also called a multi-year guarantee annuity, or MYGA — is a more conservative choice. It works like a bank CD, paying a set interest rate for a set period. Fixed-rate annuities these days pay much more than CDs of the same term. As of April 2021, you can earn up to 2.90% a year on a five-year fixed-rate annuity and up to 2.25% on a three-year contract, according to AnnuityAdvantage’s online rate database. The top rate for a five-year CD is 1.25% and 1.05% for a three-year CD, according to Bankrate. 

Fixed-rate annuities can play a key role in asset allocation. Let’s say you decide to split your Roth assets up 50-50 between equities and fixed income. A fixed-rate annuity can give you a much higher rate of interest than you’d get today with safe fixed-income alternatives, such as CDs and Treasury bonds.

For current annuity rates, see this online annuity database. Interest is paid and compounded annually.

How to get tax-free lifetime income during retirement

Other than a traditional employer pension or Social Security, an income annuity is about the only vehicle that can guarantee an income for as long as you live. And by combining an income annuity with a Roth, that income is tax-free.

If you need income from your Roth very soon, consider an immediate income annuity. You can open a Roth annuity with a single payment (such as a tax-free rollover from an existing Roth IRA) to an insurance company. The insurer in turn guarantees you a stream of income. You can choose how long the payments will last — for instance, 15 years. Most people, however, choose lifetime payments as “longevity insurance.”

You can receive your first monthly income payment a month after your annuity contract is issued.

If you’re married, consider the joint-income option. With it, your spouse will receive regular monthly income payments for the remainder of his or her life too. Payments to a surviving spouse are always tax-free.

If you don’t need income right now, consider a deferred income annuity. Here, your income stream will begin at a future date you choose. By deferring payments, you let the insurer credit more interest over the years on your behalf, and you’ll ultimately get more monthly income. For instance, by delaying lifetime annuity payments from age 65 to 75, you’ll get about 85% to 90% more each month. On the other hand, you and/or your spouse won’t receive the deferred payments as long.

Another option is an indexed annuity with an income rider. The rider guarantees a certain income regardless of the performance of the annuity. It provides income like a deferred income annuity, plus the potential upside of an indexed annuity. It’s sometimes called a “hybrid” annuity.

The downside is cost. The rider typically costs about 1% of the annuity value annually. The insurer deducts this amount from your policy.

The advantage is retaining your money. Unlike an income annuity, which typically has no cash surrender value, an indexed annuity with an income rider lets you keep your money while guaranteeing lifetime income, starting on a date you choose.  You thus have flexibility. If you need the money, it will be there for you to withdraw or annuitize. (Wait until the surrender period is over to avoid any penalties.)  If you don’t need the money, you can pass on any remaining value to your heirs.

Is the extra cost worth it?  It all depends on your situation and goals and your desire to leave money to your heirs.

Whether you’re saving for future retirement or are currently retired or soon will be, annuities offer a range of often-overlooked strategies for the Roth IRA and amplify its advantage of tax-free retirement income.

A free quote comparison service with interest rates from dozens of insurers is available at https://www.annuityadvantage.com or by calling (800) 239-0356.

CEO / Founder, AnnuityAdvantage

Retirement-income expert Ken Nuss is the founder and CEO of AnnuityAdvantage, a leading online provider of fixed-rate, fixed-indexed and immediate-income annuities. It provides a free quote comparison service. He launched the AnnuityAdvantage website in 1999 to help people looking for their best options in principal-protected annuities.

Source: kiplinger.com