There may come a time when you want to sell your rental property. After putting in all the time dealing with toilets, tenants, and trash, you're looking to cash in and relax. But there's one problem: Taxes. Despite common wisdom, you may be able to avoid them. While death is inevitable, there actually are two ways to avoid capital gains taxes on the sale of rental property. ... Read More
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How to Legally Avoid Taxes When Selling Investment Real Estate
Over the nearly thirty years of practice in financial planning and banking, I have been approached by many clients seeking to avoid paying taxes on highly appreciated real estate investments. There are a few options available to investors and some are better than others. It all depends on the facts presented and the goals of the client. In other posts, I've spoken about some alternative ... Read More
Confessions of a Portfolio Strategist: Looking for a Bottom
We live in uncertain times. While the current health crisis is novel, we have survived other crises and market traumas. I'm reminded of the advice from my parents: This, too, shall pass. That doesn't make it any easier though. And when trying to manage client portfolios all the logic in the world may not temper investor emotions. In light of the crisis, I wanted to share my thinking in these ... Read More
Bear Markets Are Painful but Markets Rise Over Time
While it's hard to watch the day-to-day meltdown in every major global market, we must remember that we've been here before. Yes, today's markets, economies, and social order have been disrupted in an unprecedented way because of a virus pandemic. And we have, by many measures, fallen into bear market territory after erasing many years of gains. We must remember this: Bear markets are painful but ... Read More
When Will We Hit Bottom?
With successive thousand-plus point drops in major indexes hitting us day after day like a champion prizefighter’s punch to the gut, it’s hard to watch and harder not to wonder “when will it stop?” When will we hit bottom? Watch the stock market's 'fear index' Stock market sell-offs often coincide with sharp spikes in the level of a popular Wall Street “fear gauge” or "fear index" known as the ... Read More
Meltdown: Know When to Hold Them
Here we are three weeks or so into the meltdown of the US and global stock markets. What's an investor to do after watching years of gains evaporate and, like a time machine, return to levels where we were three years ago? Perhaps we should take a lesson from "The Gambler" in the Kenny Rogers song. It all comes down to you need to know when to hold them and know when to fold them. And know when to ... Read More
What To Do When the Sky is Falling
As stocks have a bit of a meltdown today, there have been frenzied calls about what to do and what will happen next. Here are some thoughts on what to do when the sky is falling. Will the markets go up? Will they go down? Short answer: Yes. What should you do? Not panic. What to Do When the Sky is Falling This is not the first time that the market has given us pause. And it won't be ... Read More
Living Trust Myths Debunked
What are the benefits of a living trust? Should you consider adding a living trust to your estate plan and why? Let's explore how a living trust can help you and your family. Read on to see how living trust myths are debunked. What is a Living Trust? A living trust is established as part of your estate plan to be the owner of record for your assets. It allows you to retain control over the trust ... Read More
Can I Afford to Retire?
Back in 1981, I was in high school and remember rocking out to Loverboy's "Working for the Weekend". Flash forward a couple or three decades and now I'm working with clients who are "working for retirement," the ultimate weekend. And folks from all walks of life will ask: Can I afford to retire? So, no surprise when I was asked by someone who we'll call Jerry who just turned 59 1/2, "Can I ... Read More
Where Do I Invest When I Have “Enough”?
Let's face it. We all dream about it from time to time. If you were in the enviable position of having no debts (or just a mortgage), a big cushion of cash reserves, and have maxed out your retirement savings, what would you do with leftover money each month? Or how would you handle a lump sum like a tax refund, bonus, or inheritance? Where do I invest when I have "enough"? In a prior blog post I ... Read More
