The Realized Team’s Picks
What Is Portfolio Risk and Return?
Pursuing high returns typically comes with high risk; for some people, that is fine. For others, they prefer to be more conservative while still seeking viable returns. How does one know when they have the potential for the best return for the amount of risk taken?
How to Set Up a Charitable Remainder Trust
Estate planning can take on many different forms. A tax-exempt charitable remainder trust is one tool available when planning your estate that you can use to draw regular income, reduce tax liability, and distribute income to your beneficiaries and predetermined charities of your choice.
What Is an Inflation Hedge?
Inflation was a huge factor in U.S. economics in 2021. The year started fine – inflation was just 1.4 percent in January, but by November it had skyrocketed to 6.8 percent, the highest U.S. inflation rate since 1982.¹ That upward trend was keenly felt in American pocketbooks through higher costs in energy, gasoline, food, lodging, vehicles, apparel, and a host of other core commodities and professional services.
1031 Exchange Partnership Interests - What You Need to Know
A 1031 exchange is a way of deferring capital gains taxes on the sale of real estate. Taxpayers who sell property held for investment purposes can defer the taxes by directing the proceeds from the sale into "like-kind" property of the same or greater value, also to be used for investment. In practice, almost any investment property has been considered “like-kind” by the IRS.
Annual Depreciation Allowance: What You Need to Know
Owning real estate can provide investors with a host of tax benefits, but none may be more important than your investment property’s annual depreciation allowance.
Can You Do a 1031 Exchange on Inventory?
Ever since the 1031 exchange was introduced through the Revenue Act of 1921, swapping like-kind property held for investment or trade has been successfully used to help defer capital gains taxes. But over the years, questions have arisen about property that is eligible for exchange.
What Is a Farmland REIT?
Real Estate Investment Trusts, commonly referred to as REITs, are companies that own and operate or finance real estate assets, with the goal of earning income for their investors. Many REITs are publicly bought and sold on stock exchanges and are therefore liquid investments much like mutual funds. Ownership of a REIT allows an investor to hold a fractional share of a commercial real estate portfolio that may include multi-family housing, hospitality property, retail assets, self-storage centers, industrial facilities, healthcare buildings, and more.
REITs and Direct Purchase of Property - What are the Advantages and Disadvantages
Investors may acquire real estate in the pursuit of income and capital appreciation. In addition, real estate may offer the opportunity to earn revenue through rent paid by tenants and increases in the asset's value. However, some investors may prefer not to be actively involved with the day-to-day responsibilities that direct ownership requires. Those individuals may instead pursue the potential benefits of real estate by investing in a Real Estate Investment Trust or REIT.
What Is the Investment Time Horizon?
One straightforward way to look at the question of an investment time horizon is: when do I need this money? Another way to posit the question is: how long do I expect to hold this investment? The response could be the same or different. In fact, the answer may be different every time you ask yourself the question, depending on the goal you are pursuing, the age when you ask it, and the circumstances at that moment in time. Your portfolio will likely contain investments with various time horizons from short to long.
Are Low Interest Rates Good for REITs?
While low interest rates are typically thought to be an advantage for buying real estate, more than one factor plays a role in the success of any investment, including REITs, or Real Estate Investment Trusts.
