Finacial Tiffany Condition

 

Advisors also have to understand howtiffany jewelry collections fit into their clients' overall asset management plans. McCandless recently fielded a call from a collector who wanted to spend a significant amount of his non-retirement assets-about 5%-to acquire an item to add to his tiffany jewellerycollection. "He feels this item has huge appreciation potential, even though the area in which he collects is a limited market and not as mainstream as, say, art or wine."

The discussion quickly turned to how to finance the transaction, which assets could be sold and what the tax consequences would be. McCandless tried to inject a note of caution, to no avail: The collector was committed to the purchase.

Advisors also need to ensure that all assets are fully accounted for in the financial plan. "Sometimes people don't realize the full value of what they have or the impact it would have on their tax position or portfolio," says Bibi Conrad, a portfolio manager at Fiduciary Trust. One of her clients had a collection of signed letters by 15 American presidents in the attic. "If it's half the value of the estate, and it's an illiquid asset, then you need to get the collector to focus on the consequences" of failing to develop a plan for the disposal oftiffany jewellery.