Retirement Planning Specialist Thomas Helbig recently explained what every retiree should know about buying gold before purchasing it.
St. Louis, MO – February 23, 2013 – Thomas Helbig, Founder of the Retirement Advisory Group, recently discussed the difference between reportable and non-reportable gold investment and why the distinction is important. Mr. Helbig explains:
There are tax consequences to getting this wrong and there are other government issues to consider. The key discussion should be: What is a reportable vs. a non-reportable commodity purchase? Gold & Silver Bullion of any size is a REPORTABLE commodity. So, if you are fearful of the economy, or a possible future demise of the dollar, this money is “on the radar.”
In 1933, the U.S. dollar was convertible to gold, rendering the government incapable of printing more money, as it is apt to do today. With fiscal discipline enforced by this convertibility, our faithful politicians (even back then) did the next best thing — they promptly confiscated American citizens’ gold, via executive order 6102 (signed by Franklin Delano Roosevelt), while remunerating them for the then-fair market value of $20.67 an ounce. Upon the successful completion of its gold confiscation, the U.S. government adopted the Gold Reserve Act in January 1934, which revalued the nominal price of gold from $20.67 to $35.00 per troy ounce. What a risk-free profitable trade for the federal reserve!
Mr. Helbig continued by providing an anecdote explaining why it’s important to ask whether a purchase is reportable or non-reportable:
Let’s say you have a shady seller who sells you a 32.15 oz Johnson Gold Kilo Bar for $56,100 today and does NOT report it as required. Five years later gold hits $5,000 an ounce (awesome for you !), BUT that dealer is gone. With more governmental enforcement, all buyers of gold will report (because they will face this same tax nightmare on their purchase if they don’t) and they enter you into the system with a $160,750 sale. What’s your capital gain?
Since you “worked” the system and stayed off the radar by getting a seller to not report; your basis is $0.00 Now when you sell you are taxed on a $160,750 gain – this is NOT subject to debate – this is fact and it is easily researched – you’ll pay 20% (or, the then current capital gain tax rate). Buying reportable commodities sets you up for tax scrutiny (FYI, I am not suggesting you buy non-reportable metals to avoid taxes – you are subject to gains and losses, but, the record keeping is your responsibility).
In addition, as you can see from above, the government tracks reportable commodities and the last go around proved that the seller (the American public) got a lousy deal. Does it make sense to buy gold coins? Please don’t hesitate to contact me to help you understand your best options!
For more information on how Thomas Helbig can help, please visit http://www.retirementkey.com/.
About Thomas Helbig:
Thomas Helbig, an Independent Advisor and Certified Senior Advisor, is a specialist in all aspects of retirement planning and has been educated so thoroughly in this niche market, that he is one of the most knowledgeable authorities in the country.
Helbig is also an approved Financial Advisor through the National Ethics Bureau and has been named a Five Star Best in Client Satisfaction Wealth Manager three years in a row in the St. Louis Magazine. This is an honor less than seven percent of all the Wealth Managers in his area have achieved.
Helbig is the Best-Selling Author of The Boomer’s Guide to a Worry-Free Retirement: Sleep-Well Investment Strategies and a highly sought after speaker, as well. He was the keynote speaker at a conference in Dallas, Texas attended by some of the top producers in the business. He has been featured in USA Today, Newsweek, Wall Street Journal, St. Louis Magazine, and the St. Louis Post Dispatch as being one of the leading retirement planning specialists in the country.
Additionally, because of his expertise and significant contributions to his industry, he was recently featured in the Wall Street Journal as one of the country’s leading “Trendsetters” in the financial services and retirement planning world. Thomas was also featured in Forbes Magazine in the January 21st, 2013 National Edition as one of America’s Top 20 Premier Experts in the country.
Learn more about Thomas Helbig at http://www.retirementkey.com/.