Beat the Coming 'Taxflation' Tsunami with Precious Metals / Commodities / Gold & Silver 2020

Thefinal weeks of the tumultuous year that has been 2020 present opportunities forinvestors to get their financial houses in order ahead of the New Year.

Nobodyknows what 2021 will bring. But new political risks are likely to emerge –including the threats of higher taxes and a more punitive IRS.

Withcontrol of the U.S. Senate still up for grabs pending runoff elections inGeorgia next month, and the final outcome of the presidential race still indispute, an environment of uncertainty will reign for the remainder of theyear.

PresidentDonald Trump continues to pursue a longshot campaign to rescind fraudulentelection results in multiple states through the courts or state legislatures.

TheU.S. Supreme Court may ultimately determine the fate of Trump’s legalchallenges.

We’llleave the Constitutional questions to the legal experts.

Regardlessof which side you’re on, though, you should be prepared for the possibilitythat Joe Biden and Kamala Harris do indeed take power and deliver on theirpromises to increase spending and raise taxes on millions of Americans.

Bidenintends to make former Federal Reserve chair Janet Yellen his TreasurySecretary. Yellen would presumably work closely with former colleague andcurrent Fed chair Jerome Powell to carry out the government’s and the centralbank’s priorities in tandem.

Itisn’t difficult to imagine an unprecedented level of coordination betweenfiscal and monetary policy. That may well be the point of her nomination.

Thepresumptive Biden administration will have twin objectives of raising taxrevenues and raising inflation rates to help eat away at the real value ofsoaring government debt. Yellen is well suited to these “taxflation”objectives.

JanetYellen opposed President Trump’s 2017 tax cuts and supports a “carbon tax.” Shewill undoubtedly be on board with the Biden/Harris agenda of eliminating theTrump tax cuts on “day one.”

Ifthat happens, it will mean a $2,000 tax hike on a typical middle-income familyof four. And that’s just for starters.

Bidenalso wants to double the top capital gains rate to 40% and force all investorsto pay capital gains taxes at ordinary income tax rates.

Presumably,that would also apply to precious metals investors whose long-term gains ongold and silver coins are currently taxed at a top “collectibles” rate of 28%.

Evenif a Republican-controlled Senate thwarts Biden’s most ambitious tax hikingplans, his Treasury Secretary will be able to implement taxpayer-adverseregulatory changes and direct more funding to the Internal Revenue Service forenforcement actions.

Yellencan be expected to push for more IRS audits of taxpayers and stiffer penaltiesfor inaccuracies on returns. It’s another way to “bring home the bacon” for theWashington, D.C. swamp.

A Precious Metals IRA Is a Wealth Protection ‘Double Play’

Nowis the time for investors to think strategically about how they might protectthemselves – in 2021 and beyond – from the twin threats of inflation andtaxation.

Onepotentially powerful strategy to consider is to sock away wealth in atax-advantaged retirement account funded with physical precious metals. Atime-tested way to hedge against currency depreciation combined with a shelterfrom ruinous taxation is a wealth protection double play!

Insome cases, a traditional IRA contribution – and contributions to otherretirement accounts such as 401(k)s and 403(b)s may be tax deductible in theyear made (consult with your tax advisor), so maxing out contributions for 2020is a great year-end tax strategy.

Ifyou have already maxed out your 2020 IRA contributions, it’s not too early tobe thinking about getting a head start on 2021. By making those contributionsas soon as possible in the New Year, you can maximize the time period thoseassets enjoy tax deferral.

For2021, the IRA contribution limits for individuals ($6,000) and those over age50 ($7,000) will be the same. But the income thresholds for being able todeduct your contributions or contribute to a Roth IRA are both bumped upslightly.

Notonly can you purchase, hold, and sell real precious metals inside atax-advantaged Self-Directed Precious Metals IRA, but also you canwithdraw your bullion and take direct physical possession of it under normalIRA distribution rules.

TheIRS does impose certainrestrictions on size and purity, but a wide variety of bullion coins,rounds and bars are eligible. In addition to gold and silver, you can even holdphysical platinum and palladium within an IRA.

Toget started in funding a Self-Directed Precious Metals IRA, choose areputable account trustee then arrange for a bullion dealer such as MoneyMetals Exchange to ship your IRA-eligible bullion to your designateddepository. (Money Metals Depository is approved by several IRA trustees suchas New Direction and Mountain West.)

Whatif you have an existing IRA but don’t want to make new cash contributions tofund a precious metals purchase?

Aconventional IRA, whether Roth or traditional, can be converted to aSelf-Directed Precious Metals IRA. Switching is easy. Most providers can enrollyou right online and work directly with your existing IRA custodian to transferfunds.

Yourbroker may have never told you about these fantastic options (for obviousreasons). But they are totally legitimate.

Inan environment such as we could be heading into, where conventional paperassets begin to underperform and political risks accelerate, physical preciousmetals shielded from taxes could be among the few true safe havens.

Stefan Gleason isPresident of Money Metals Exchange, the national precious metals company named 2015"Dealer of the Year" in the United States by an independent globalratings group. A graduate of the University of Florida, Gleason is a seasonedbusiness leader, investor, political strategist, and grassroots activist.Gleason has frequently appeared on national television networks such as CNN, FoxNews,and CNBC, and his writings have appeared in hundreds of publications such asthe Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2020 Stefan Gleason - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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