Robert’s Recent Posts
Like many rules of real estate investing, the 50 percent rule isn’t always accurate, but it can be a helpful way to estimate expenses for rental property. To use it, an investor takes the property's gross rent and multiplies it by 50 percent, providing the estimated monthly operating expenses. That sounds easy, right? If the property rents for $4,000 a month, the operating costs should be approximately $2,000.
Real estate investors may think of using a 1031 exchange when managing their real estate portfolio. For example, perhaps you are considering a shift from active management of the property to passive investing. In that case, using a 1031 exchange to defer the payment of capital gains taxes on property you identify for sale may make sense.
Determining the amount of assets and income needed to fund a comfortable retirement is a significant concern for many people, and it’s shrouded in mystery for some. How much money will I need? How long will I live? What’s the best way to safeguard my resources?
Recessions are part of a normal business cycle, but that doesn’t mean anyone wants to experience one. Forbes explains that a recession is “a significant decline in economic activity that last for months or even years.” 1 Typically, a recession is marked by declines in productivity, increases in unemployment, and reduced retail sales. The National Bureau of Economic Research is generally accepted as the expert on defining a recession's starting and ending point. It has been flexible in identifying the cycle instead of requiring a specific number of months or quarters of contracting output. The Bureau may recognize a recession even if the downturn is interrupted by transient increases (as is the case with a W-shaped recession, for example) if the overall trend for a sustained period is lower.
Some people scoff at the notion that there is a fundamental difference between estate planning and legacy planning. After all, both refer to a plan for distributing your assets after your death, plus related concerns like end-of-life issues. In addition, both types of planning usually involve preserving wealth, sharing good fortune with your heirs, and possibly safeguarding family keepsakes.
Leaving a financial legacy can take on many different forms. Creating a charitable remainder trust to benefit your favorite foundation, museum, community group, university or nonprofit organization is an avenue to consider when deciding how to commemorate your financial achievements and cement a fiscal legacy.
Let’s say you’re an investor with a portfolio of bonds, and one of those bonds is nearing its maturity date. Thanks to the relatively high interest rate attached to that bond when you first invested in it, you’re looking forward to reinvesting in the same bond at the same class.
Investors may look to financial advisors to help manage their accounts and offer professional advice. Depending on your needs, you may want an opinion on a new real estate investment opportunity or how to plan for retirement. Working with a Certified Financial Planner™ (CFP®) can give you confidence that the information you receive is in your best interest.
There are a few different ways to relinquish or transfer rights of ownership to real property.
We’ve mentioned in previous blogs that investment in real estate—specifically, real estate that you buy as an investment and rent to others—comes with a plethora of deductions that can be used to offset income reported on your annual tax return.