The Realized Team’s Picks
What Is Risk Allocation?
Building an investment portfolio involves crafting a strategy for deciding where to invest funds. Often, investors choose asset types and then select specific targets within those categories. For example, if you prefer a traditional 60/40 allocation, you would direct approximately sixty percent of your investment funds to equities and the remaining forty percent to bonds or other conservative instruments. Within those two asset categories, the investor can choose from large and small-cap stocks, domestic or international companies, industry, company age, dividend-paying or reinvesting, and more. In the bond portion, there are plenty of options as well.
Is a Certified Financial Planner a Fiduciary?
Implementing a wealth-building strategy usually requires the guidance of a finance professional. Financial advisors and planners can help you manage your wealth; however, neither designation implies a fiduciary duty on your behalf.
How Does a 1031 Exchange Work in Conjunction with Depreciation on an Investment Property?
Selling an investment property for a gain can result in a large tax bill. Some of that bill may include paying back depreciation. This is called depreciation recapture. The recaptured depreciation is taxed at a different tax rate. Does a 1031 defer depreciation recapture taxes or does depreciation continue as if it is the same property?
What Is the 20/10 Rule?
Investment and finance can be intimidating. That's why rules and formulas often encourage us to feel confident that we are on the right track. Unfortunately, sometimes it seems like there are competing rules for every topic, and as an investor, you can cherry-pick the one you want. The same can be said for personal finance rules, although following some common sense guidelines is a wise approach to financial discipline and health.
How Much Does a Certified Financial Planner Cost?
Strategic money management isn’t a strong suit for many people. They don’t have the time, knowledge, or interest to dig deep into such planning. This is where a CERTIFIED FINANCIAL PLANNER™ can step in to help. These experts have the knowledge and understanding to build a solid financial strategy that fits various goals and objectives.
What Is Tax Risk?
Whether you’re an investor or business owner, tax law can be hugely complex. The bible of United States federal statutory tax law is the Internal Revenue Code (IRC), which is implemented and enforced by the Internal Revenue Service (IRS). The IRC contains 11 subtitles, covering income taxes, employment taxes, health benefits, group health plan requirements, and more.
What Is the Rule of 42?
When crafting and managing your investment portfolio, one of the fundamental goals is to maintain a diverse array of components. A varied selection of holdings is typically designed to seek growth and manage volatility. Most likely, you have some professional help to guide you in this journey, but you also probably influence the process in large and small ways and educate yourself on current thinking about investing.
Is Inheritance Taxed as Income?
Leaving an inheritance to your loved ones is an excellent way to care for them after you’re gone. However, you may wonder if your beneficiaries will have to pay taxes on the assets they receive as part of your estate.
What Is Financial Risk in Real Estate?
When discussing risk, there are articles about evaluating real estate risk, determining risk profiles, and how property risk differs from that of securities.
How to Find a Property Manager
As a property investor, you may start by managing your rentals personally, especially if you own a small portfolio of residential rentals. It might not be too taxing to handle the rent collections, identification and qualification of tenants, and management of repairs and maintenance. Personal involvement is also an excellent method of developing your understanding of the nuts and bolts of the business as you add to your holdings and refine your strategy. However, as you expand your operations, you will eventually reach a point where you can’t oversee the details yourself or simply choose not to. If you invest in other sectors, like industrial, retail, and office buildings, that moment will likely come sooner than later.
