ABOUT Long-Term Planning
About
Long-term market planning for your collecting interest can help provide you with a piece of mind further in your collecting career.
From a Collector’s View
As tempting as the lure of selling a major collection in one auction may be, this strategy may prove costly; eating into expected profits. Selling a collection in a single auction may bring unforeseen tax consequences for the collector or their estate. Working with the collector’s legal or tax advisor, certain tax advantages may be garnered to staggering the sale of the collection over a period of years.
Market conditions may provide financial advantages to staggering the sale of a collection over a long period of time. This can occur when the collection being sold has the best, the second best and the third best philatelic collections. Releasing all the material into the market at a single point of time may overwhelm the market, lowering the realization for all of the items. Staggering the sales over several years allows collector interest to develop.
From a Professional’s View
Professional firms are motivated by profits and operate based upon the “bird in the hand” principle, where they seek to sell as much of a collection in the shortest period of time needed to achieve the maximum sales commission for the firm. Most firms have high overheads and look at all but a select few clients as short term propositions with whom they expect to have no contact after the final payment is made.
This approach works for the majority of clients and their collections. These firms will seek to rekindle relationships with clients when their collections are ripe for sale.
The Harmer View
We work for the client and will offer our honest and candid advice based upon the particulars of the situation. Our clients are our primary responsibility. Harmers offers you generations of experience in a variety of situations. Tax laws are constantly changing.