What is The First Step in Financial Planning?
The question of what the first step in financial planning is doesn’t have a simple solution. In fact, Forbes’ Finance Council recently asked a selection of financial experts that very question and came up with a diverse group of responses. Their suggestions included these:
Does Sale of Rental Property Go on Form 4797?
Owning rental property can be a great way to earn income, but sometimes investors need or want to sell a property for various reasons. Potential motivators include simplifying your portfolio (or changing the focus), preparing for retirement, and estate planning. Sometimes an investor may need liquid assets for another purpose. Whatever the reason, buying and selling property is an essential aspect of real estate ownership.
How Often Should You Rebalance Your Retirement Portfolio?
Your individual tolerance for risk and investment goals will change over time. Rebalancing your investment portfolio as you age – especially as you near retirement – can help ensure that the mix of assets in your portfolio matches your risk tolerance and investment objectives.
How Does the Ownership Structure of a Tenant-in-Common Property Work?
If you are looking to buy real estate and are currently researching the various ownership options available to you, one type of ownership structure that's oftentimes overlooked involves "tenancy in common," which is a standard legal arrangement for ownership that several investors can enter into. In this article, you'll learn more about tenant-in-common (TIC) properties and how this ownership structure works.
What is a Capital Improvement?
If you have direct ownership of a property used for business or investment, there could come a time when you might want to make a change to it. You might want to add an addition or refloor the asset. These are activities that fall under the category of capital improvement.
How to Create a Retirement Portfolio
Creating a retirement portfolio is sort of like getting dressed in the morning. Personal preference dictates that our choice of outfits won’t be the same, just as no two retirement portfolios will look the same, either.
How Do You Value a Commercial Real Estate Property?
When you invest in commercial real estate, it’s vital to know the value of your assets. This statement seems logical since the value is essential information for buying, selling, financing, and paying taxes. However, it isn’t always simple to determine a fair price for a property unless you want or need to sell it (since, ultimately, how much a buyer will pay is one bottom line approach to valuation). Also, keep in mind that land value differs from a developed parcel's value.
What Is Replacing The 60/40 Portfolio?
The 60/40 portfolio, also known as the 60/40 asset allocation, has been typically understood in financial planning and investment circles as a method to balance risk while promoting growth. The strategy is that stock investments make up 60%, while bonds make up the remaining portion. With this combination, it’s been thought that stock holdings could grow, over time, while bonds might provide a cushion during economic downturns.
How Can I Diversify My Retirement Portfolio?
Planning for retirement is a necessary, if potentially intimidating, part of being financially savvy. Retirement preparedness varies widely among people, depending on their age, education level, and gender. Still, some recent research indicates that the status of aging Americans isn't as dire as previously thought. An interesting piece from the RAND Corporation looked at retirement readiness by taking into account expected consumption patterns rather than strictly considering income replacement and found that 71 percent of Americans aged 66 to 69 are prepared. The study did note a high disparity in preparation between married and single individuals and a distinction according to educational level.1
What is the Average Return of a 60/40 Portfolio?
A 60/40 portfolio traditionally offers a balance of growth opportunities and managing risk. The 60 refers to a sixty percent composition of stocks in the portfolio, balanced by forty percent bonds. The theory is that the stocks would increase reliably over time, allowing the investor to increase their holdings, while the bonds would provide a hedge for the times when the stocks declined. Generally speaking, this strategy has paid off for patient investors, with long-term average returns of nine percent.
