How Do Interest Rate Risk and Reinvestment Risk Interact?
When interest rates go up, the cost of capital increases. How does this impact investors, or why should they even care? Specifically for bond investors, the fluctuations in interest rates can significantly impact their investments.
What Is A Capital Gain Distribution, And How Are Capital Gains Distributions Taxed?
Previous Realized blogs have outlined capital gains, what they are, and how they’re taxed. Then there are capital gains distributions. In concept, these are similar to capital gains, in that both are defined as profit generated from the sale of capital assets. They differ, however, in that capital gains distributions arise from investments in mutual funds and exchange-traded funds.
What Is a Real Estate Rollover?
Real estate investment properties can offer many potential benefits, including important tax breaks, stable cash flows, passive income, portfolio diversification, and asset appreciation.
What Does a Private Wealth Manager Do?
Many important factors must be considered before making informed investment decisions. These include extensive knowledge of a wide range of markets, varying investment opportunities and strategies, as well as patience, conviction, foresight, risk tolerance, and a host of other components that make up the greater whole.
What Is a Real Estate Mutual Fund?
Mention the term “real estate investment,” and what might come to mind is a direct investment. This means you directly own that physical property. You’re also the landlord, with hands-on duties when it comes to the successful functioning of that physical property (not to mention the satisfaction of your tenants).
How to Relinquish Rights to a Property
There are a few different ways to relinquish or transfer rights of ownership to real property.
What Is Equity Risk Premium and How Do You Calculate It?
Investing is always linked to the risk of losing your investment capital – the cryptocurrency crash of May 2022 and ensuing collapse of the Luna coin from $119 in early April to a mere eighth of a penny just over a month later is a painfully clear example of how billions of dollars of investment capital can be vaporized.¹
Does Income From a Rental Property Count Against Social Security?
Officially known as the federal Old-Age, Survivors and Disability Insurance program, Social Security is in place to help U.S. citizens replace income lost due to retirement, death of a spouse (or qualifying ex-spouse), or disability. According to the U.S. Social Security Administration (SSA), nine out of 10 people age 65 and older received Social Security benefits in 2020. Additionally, such benefits represent 30% of the income of the elderly.
What Is the 70% Rule in Real Estate Investing?
Investors often use the 70 percent rule when calculating the maximum purchase price they are willing to pay for a property that needs repair and improvements. Seventy percent is the amount of the ARV (after repair value) that an investor may be willing to spend to acquire a property. But the formula also subtracts the cost of needed repairs from the 70 percent of the calculated ARV. It sounds complex, but it is relatively straightforward:
What Is Negative Leverage in Real Estate?
Real estate investors often use debt to finance their endeavors. This allows the investor to put up less money in acquiring a property. The use of debt by the investor is called leverage. Basically, the investor is granted buying power through a loan. It’s money the investor would not otherwise have.
