Clay’s Recent Posts

What is the Average Return of a 60/40 Portfolio?

What is the Average Return of a 60/40 Portfolio?

A 60/40 portfolio traditionally offers a balance of growth opportunities and managing risk. The 60 refers to a sixty percent composition of stocks in the portfolio, balanced by forty percent bonds. The theory is that the stocks would increase reliably over time, allowing the investor to increase their holdings, while the bonds would provide a hedge for the times when the stocks declined. Generally speaking, this strategy has paid off for patient investors, with long-term average returns of nine percent.

Oct 2, 2022

What is the Average Rate of Return on a Conservative Portfolio?

What is the Average Rate of Return on a Conservative Portfolio?

It’s difficult to say what the average return of a conservative portfolio is as there are many different ways to configure a conservative portfolio. There are many assets to choose from when talking about a conservative portfolio. But one thing they all have in common is that they are low return and low volatility portfolios. We’ll look at some broad examples and a couple of specific examples as well.

Sep 27, 2022

Who Can Do a 1031 Exchange?

Who Can Do a 1031 Exchange?

  A 1031 exchange is a tool that real estate investors sometimes employ intending to defer payment of capital gains taxes. By doing so, they can reinvest the entire proceeds from selling an asset. Fortunately, the IRS approved the use of this procedure, as long as the taxpayer carefully follows the rules.

Sep 23, 2022

What is a Good Monthly Retirement Income?

What is a Good Monthly Retirement Income?

Establishing a budget is one of the most important aspects of financial security in retirement. A budget can help ensure your retirement dollars last the rest of your life, which could be decades after you stop working. 

Sep 18, 2022

How Are Condos and Tenants-In-Common Properties Different?

How Are Condos and Tenants-In-Common Properties Different?

Tenancy-In-Common (TIC) is an intriguing term in investing. It implies occupancy, but traditionally TIC participants have not occupied the properties in which they invest. However, that status is changing somewhat, as more TIC investors view the ownership structure as an opportunity to buy a home, possibly for the first time.

Sep 13, 2022

How Do 1031 Exchanges Work?

How Do 1031 Exchanges Work?

In the simplest terms, a 1031 Exchange allows a taxpayer to defer the recognition of capital gains tax due from the sale of investment property by replacing the sold property with a "like-kind" property of the same or greater value. Section 1031 of the Internal Revenue Code originally applied to personal property as well as real estate, but was amended by the Tax Cuts and Jobs Act to remove exchanges of intangible and personal property. To successfully defer the capital gain, the taxpayer must use the profit from the sale to purchase a like-kind property within 180 days.

Sep 7, 2022

What Is the Difference between a Primary and Contingent Beneficiary?

What Is the Difference between a Primary and Contingent Beneficiary?

If you’ve had a chance to read our previous blogs on the topic, you already know about beneficiaries. A beneficiary is an individual or an entity eligible to receive distributions from a trust, will, or life insurance policy. We’ve discussed the importance of naming beneficiaries to ensure that your wealth and/or assets go to the designated people or organizations you choose. 

Sep 3, 2022

Do Tenants in Common (TIC) Pay Stamp Duty?

Do Tenants in Common (TIC) Pay Stamp Duty?

Tenants in Common (TIC) is a real estate ownership structure that allows two or more people to own a property. The owners share ownership and responsibilities. The amount each owns and the responsibilities are worked out between the various owners. 

Aug 27, 2022

What is Deceased Spousal Unused Exclusion (DSUE)?

What is Deceased Spousal Unused Exclusion (DSUE)?

Estates are exempt from taxes upon death up to a certain amount. For 2022, the exemption is $12,060,000. Estates valued under this amount don't have to pay estate taxes. What happens to the remaining amount of the exemption for those estates that are less than the exemption? Does it go unused? This is where the Deceased Spousal Unused Exclusion comes in.

Aug 19, 2022

Can I Turn My House into a Rental Property?

Can I Turn My House into a Rental Property?

If you’re contemplating turning your house into a rental property, there are several steps you need to follow. Homeowners explore turning their primary residence into a rental property for several reasons. Some of the main reasons why include:

Aug 12, 2022

Another Way To Own Investment Properties

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