Many investors are looking to save on their taxes these days as governments around the world increase tax rates and close loopholes. Yet these same investors are looking for innovative investment vehicles that will help them with not only protecting their assets ,but also by growing their retirement nests for some point in the future. An innovative way of responding to both of these needs of investors is by acquiring fancy color diamonds.
I repeat: you can acquire fancy color diamonds for your retirement and save taxes at the same time!
How?
One.K to your rescue!
The answer is quite simple – do it via your self directed 401K plan, or as some call it, your “one.K”. You can even do it via your self directed IRA account. The choice can be made once an investor discusses both options with their financial advisor.

Image credit: accuplan.net

How does it work?
In short, a regular 401k plan does not allow for direct investment in a diamond, or even real estate, since it is managed by a third entity. The solution that we are referring to is a self directed 401k or one.K where you, the investor, are the trustee and manager (not a third entity).
It has several benefits, including that management fees are minimal since you are managing the investments, and that you can invest in any real asset such as diamonds.
Once you, the trustee of the self directed plan, find the appropriate fancy color diamond, you then construct the plan to acquire the diamond. Since this is a physical asset, you will need to decide where it will be stored. The diamond can be stored at your chosen location, either in a safe at the bank or at home. The self directed plan can also allow you to transform your recently acquired diamond into a jewelry piece and allow your self or a loved one to enjoy it. You have full control of investment decisions, as well as valuation. Feel free to contact us once the plan is set up if you need help in locating the appropriate Fancy Color Diamond for your portfolio.

image courtesy of www.assetexchangestrategies.com

What is the process of valuing or liquidating the diamond at a future point in time?
As the manager,or trustee of the self directed 401k or self directed IRA, you are responsible for assessing the value of the diamond, including its investment value and ROI. In my opinion, the best valuation is the value at which you can maximize the value upon disposition of the asset. Additionally, any capital gain upon disposition can grow tax free within the plan. You can take the proceeds of the disposition and invest in another, rarer diamond, or maybe in a collection of diamonds. Again, the growth remains within the plan. Upon retirement, and when you withdraw money from the plan, or even when withdrawing an asset such as the diamond, it is up to you to assess its value for the purpose of taxation. I strongly recommend speaking to a tax specialist prior to engaging in this process.
We, at Diamond Investment & Intelligence Center can help you plan, implement, and re-balance your diamond investment portfolio. We can also show you how fancy color diamonds can have a major impact on your future wealth! We have compiled much unprecedented data just for this purpose.