The Realized Team’s Picks
How Are Bonds Affected by Inflation Risk?
If you’ve been paying attention to recent business and financial headlines recently, you know that we’re living in inflationary times. The Bureau of Labor Statistics releases a monthly Consumer Price Index (CPI), an indicator of inflation. The April 2022 numbers showed that the index increased by 8.5% from the year before. In other words, people are paying 8.5% more these days for baskets of consumer goods and services.
What Is Foreign Investment Risk?
When Russia invaded Ukraine on February 24, 2022, the United States, European Union, and other countries announced sanctions on Russia. These sanctions ranged from banning investments in and exports to Russia, sanctioning the Russian central bank and freezing assets of high-ranking political officials. This, in turn, drove Russia to impose its own economic sanctions and measures on foreign investors with assets and capital in the country. All of this, in conjunction with Russia’s shuttered stock market and the ruble’s collapse, has harmed foreign investors with exposure to Russian assets.
What is Concentration Risk and How Can You Mitigate It?
Putting all your eggs in one basket speaks to the essence of concentration risk.
What Is Regulatory Risk and How Can I Mitigate It?
Changes in federal, state, or local regulations by governing bodies can negatively impact many sectors of business, financial securities, or the stock market. These changes could lead to higher costs of doing business, unfavorable tax environments, or even unhinge an industry’s entire business model.
What Is the 5% Rule in Real Estate Investing?
There are many ways to slice and dice the rent vs. homeowner debate. You can spend lots of time on various calculations and weighing pros/cons only to be left with no decision. But for those who aren’t as familiar with real estate, where do you even begin this debate?
What Is a Registered Representative?
As an investor, you may be confident in your financial acumen and comfortable executing your investing strategy. On the other hand, you may prefer to incorporate the input of a professional investment advisor to a greater or lesser degree, depending on the situation. Circumstances and strategies may change over time, and the investor’s need for professional support may also differ at various stages. Therefore, it's helpful to understand the options available and the differences between the professional advisors you can choose from.
What Are Real Estate Appraisals and How Do They Work?
If you have ever bought a commercial property or even a home to live in, you have probably experienced the anxiety of waiting for the appraisal value report. An appraisal estimates a property's fair market value and is made by someone qualified to do so because of their knowledge and expertise. You might need an appraisal for tax purposes, gain mortgage approval, qualify for insurance, or determine a sales price.
What Is a Regulated Investment Company?
A regulated investment company (RIC) can be any one of several types of companies, including mutual funds, exchange-traded funds (ETFs), unit investment trusts, or real estate investment trusts (REITs). What matters for the definition is whether the company is qualified to pass-through income per Internal Revenue Regulation M (Title 26, sections 851 through 855 and others).
When Are Capital Gains Realized?
When you sell a stock at a higher price than you paid for it, a profit is generated. In most cases, that profit is taxed. Specifically, if the profit is a realized gain, it is taxed. But when exactly does a profit become a realized gain?
