The Realized Team’s Picks
Recapping the 2022 InvestmentNews Retirement Income Summit
Realized recently attended the InvestmentNews Retirement Income Summit and had the opportunity to sit down with Mary Beth Franklin for a fireside chat during the event. We shared our insights on using real estate as an asset class while planning for retirement and ways advisors can help their clients create income-producing strategies using their existing real estate holdings. Here’s some of what we covered.
How Can Real Estate Investments Help with My Retirement Planning?
Planning for your financial future is important, even in post-retirement. Real estate investment can help those seeking to boost retirement income and increase wealth assets.
What Is Leverage in Real Estate?
Leverage can be one of the most important aspects of your real estate investments.
What Is Duration (Horizon) Risk?
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An investment with a short hold time can be less risky than the same investment with a longer hold time. This is mainly due to more factors and unknowns that can be introduced within a longer time frame.
Are REITs Required to Pay Dividends?
Investors evaluating options in real estate have ample choices. They can buy property directly and either manage it or use a property manager. They can collaborate with other investors through tenancy-in-common structures or crowdfunding syndications. Or they can invest in a Real Estate Investment Trust (REIT).
What You Need to Know About Combining a 1031 Exchange and a Section 121 Exclusion
Real estate investors who want to sell highly appreciated residential investment assets can use 1031 exchanges to defer capital gains taxes. But there’s another important tax-advantaged tool at your disposal that may be combined with a 1031 exchange to provide additional tax benefits.
How Does Inflation Increase Investment Risk?
There is no aspect of the economy that’s unaffected by inflation. From consumer spending to employment, investments to interest rates, a sustained rise in cost of goods and price levels reduces purchasing power and erodes the value of investments.
Who Is a Beneficial Owner of Shares?
When investors buy shares of stock, they typically don’t take physical possession of the actual ownership certificates for various reasons, including safety and expedience. Instead, the buyer becomes the beneficial owner of the shares while they remain registered to the brokerage firm that manages the transaction. This status is sometimes referred to as the investor registering the shares in "street name." While seldom acknowledged, beneficial ownership is the most common method of holding shares.
Is Probate Required for Tenants-In-Common (TIC)?
When purchasing real estate, whether for personal use and enjoyment or as an investment, there are several ways to share the ownership with one or more other individuals. For investment purposes, one of the most workable structures is tenancy-in-common. In a TIC ownership arrangement, there are at least two owners, although there can be an unlimited number, and each share can be of a different size. Each owner can dispose of their portion as they desire—at any time. However, each TIC owner has undivided access to the property. That factor makes a TIC agreement crucial, whether the property is for personal use or held as an investment.
What Are the Related Party Rules for a 1031 Exchange?
Section 1031 of the Internal Revenue Code allows owners of real estate investment properties an important tax break: the ability to defer capital gains and other taxes when they exchange one investment property for a replacement asset.
