Article on Collectible Guns

[mrerick]

Walter's column parrots Financial Planning 101... the basics of taking diversification and tax impact into consideration when investing. Interesting that he doesn't go into:

- Estate planning implications (what does the wife do with the hated collection if he should pass away first?)
- The cost of insuring the collection
- The cost of storing and protecting the collection

Since he's a fan of IRAs it's also interesting that he doesn't go into:

- The potential for tax rates on IRA withdrawals to be higher than they were when the money was earned.

I think that his $5 Million comment came from working back to what a "safe" $250,000 asset allocation percentage would be from an entire estate.

Marc

[Conny]

An IRA or 401k is taxed. If he sells his collection after retiring, lets say 20 a year, it is tax free income that wouldn't need to be reported. Excluding gun businesses, does anyone here report the money made when a gun is sold?
I can see advantages and disadvantages in his thinking. It is not something I would do. Diversification is the safest way.