What Does Payable on Death Mean?

What Does Payable on Death Mean?

Sep 24, 2022

Who Can Do a 1031 Exchange?

Who Can Do a 1031 Exchange?

  A 1031 exchange is a tool that real estate investors sometimes employ intending to defer payment of capital gains taxes. By doing so, they can reinvest the entire proceeds from selling an asset. Fortunately, the IRS approved the use of this procedure, as long as the taxpayer carefully follows the rules.

Sep 23, 2022

Retirement Portfolio Asset Allocation by Age: What You Need to Know

Retirement Portfolio Asset Allocation by Age: What You Need to Know

As an investor approaches retirement, their portfolio asset allocation changes. This change is due to a decrease in volatile assets. Older investors decrease portfolio volatility because they will soon start taking distributions. Taking distributions from a volatile portfolio can negatively impact investment principal and, thus, retirement income.

Sep 23, 2022

Is Landscaping a Capital Improvement?

Is Landscaping a Capital Improvement?

New landscaping may not boost the value of your rental property, but it can enhance the visual appeal of your rental and attract higher-quality tenants. 

Sep 22, 2022

How Will the Inflation Reduction Act Affect Audits?

How Will the Inflation Reduction Act Affect Audits?

As is often the case with marquee legislation, the Inflation Reduction Act of 2022 has a subject title designed for appeal rather than accuracy. In this case, there is some question about the degree (and direction) of the new law's ability to affect inflation. However, there is no question that it will significantly affect several areas of the U.S. economy. Secondary to the potential impact on inflation, the legislation may increase the ability of the IRS to perform audits. In that scenario, will taxpayers reporting 1031 exchange transactions be targeted? It’s a good question to consider, especially since the tactic has recently been deemed at risk of modification or elimination in past election cycles.

Sep 22, 2022

Are Financial Planning Fees Deductible?

Are Financial Planning Fees Deductible?

Financial planners offer different fee set-ups for the services they offer. These include commission, a percentage of the value of assets under management (AUM), or fee-only. But are these financial planning fees deductible from your taxes? At one time, they were. But not these days. 

Sep 21, 2022

What is the Average Rate of Return on an Aggressive Portfolio?

What is the Average Rate of Return on an Aggressive Portfolio?

An aggressive portfolio is designed to pursue above-average returns. These portfolios strive to provide some of the highest returns of all portfolio configurations. But for those returns, investors must take on higher risk (i.e., volatility). This type of portfolio is for those with a high risk tolerance. Generally, this means that most retirees will avoid an aggressive portfolio. We’ll look at the historical returns of this portfolio type and what’s involved with creating it.

Sep 21, 2022

1031 Exchange Replacement Property Rules: What You Need to Consider

1031 Exchange Replacement Property Rules: What You Need to Consider

If you’ve looked online, you know there is a great deal of information about the 1031 exchange process. Relinquishing investment real estate into “like-kind” real property can help defer capital gains taxes. 

Sep 20, 2022

Do Capital Gains Affect Your Tax Bracket?

Do Capital Gains Affect Your Tax Bracket?

Understanding the difference between ordinary income and capital gains (both long and short term) and how these affect each other can be confusing. As an investor, you can benefit from managing your tax obligations. A clear explanation of tax brackets is a good starting point.

Sep 20, 2022

What is a Realistic Rate of Return in Retirement?

What is a Realistic Rate of Return in Retirement?

The answer depends on several factors, including which assets you’re invested in and your risk profile. We’ll look at a number of risk assets to get an idea about what a realistic rate of return can be in retirement while also factoring in risk profiles.

Sep 19, 2022

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