The Realized Team’s Picks
What Is the Minimum Investment Needed for a DST?
Investors looking to grow their real estate portfolio may consider purchasing ownership in a Delaware Statutory Trust (DST). A DST strives to provide access to high-dollar commercial property for investors with minimal capital.
What Is the 4% Rule When Saving for Retirement?
Saving for retirement, and living comfortably through your retirement years, is a complex topic. So many factors impact the amount of money you may need, and most of them you can’t accurately predict. Of course, it’s better to have more than you need instead of not saving enough and running out too soon. To simplify things, financial planners devise “percent rules” to guide future retirees toward saving specific amounts, usually suggesting at least ten percent of your pre-tax income annually to ensure a secure retirement.
What Is Over-Leverage in Real Estate?
Real estate investors often use leverage to help increase the performance of their returns. While this works well when property values are appreciating and operations are running smoothly, it can backfire when things aren’t going as well. This problem is exacerbated when an investor decides to over-leverage.
Why Do Short-Term Bonds Have More Investment Risk?
A 60/40 investment portfolio is a traditional allocation of equities and bonds. Meaning that 60% of the portfolio is invested in equities and 40% in bonds. This split is meant to counter peaks and troughs in equities. Periodic rebalancing is also needed to maintain the allocation.
Do Triple Net (NNN) Properties Appreciate?
There can be two benefits to investing in real estate properties. The first is potential cash flow generated by rents. The second is the possible increase in value, known as real estate appreciation. Property appreciation means you could generate a profit—or capital gain—when you sell the asset.
What Is the Biggest Expense for Most Retirees?
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?
Can You Still Do a 1031 Exchange After a Sale?
Successful execution of a 1031 exchange requires planning. The purpose of the exchange is to defer the obligation to pay capital gains taxes on the sale of a real estate investment. The deferral process requires that the proceeds from the sale of the asset be exchanged into a like-kind property of equal or higher value.
What is a 60/40 Asset Allocation?
Asset allocation can mean various things, depending on the context. Typically, a long-term allocation might be set at sixty percent stocks and forty percent bonds when discussing an investment portfolio. This ratio was thought to balance risk while still seeking growth. The stock holdings would be likely to grow over time, while the bonds could provide a cushion if the anticipated growth did not occur. Barron's reports that this mix has returned an average of nine percent over the long term.
What Is the Difference between Financial Planning and Retirement Planning?
Financial planning is the process of creating a roadmap to guide you to your financial goals. You can draft the plan on your own or with the assistance of a financial planner. Either way, you will initiate the process by evaluating your current financial situation, including weighing your assets and liabilities. Then, with the status quo clearly pictured, you can set a course for your future destination.
What Is a Clawback in a 1031 Exchange?
The 26 U.S. Internal Revenue Code § 1031 is a handy tool if you own real estate used for trade or investment purposes and want to sell it without immediately triggering taxes on the capital gain on that sale. However, as we’ve mentioned in a previous blog, the like-kind exchange functions on a federal level. You can do a state-to-state 1031 exchange, which involves swapping your relinquished property in one state for a replacement property in another.
