Are you currently negotiating a new job offer or searching for a new role? This article aims to guide you on your journey. The question is: how do you ensure you receive a salary that mirrors your worth?
Would you enjoy your retirement more in the U.S. or abroad?
Owning rental real estate can be a powerful tool for building wealth. Real estate has a strong track record of appreciating over time. Every mortgage payment made by a tenant builds additional equity in the property. Owning high quality, cash flow positive properties opens up opportunities for additional bank financing, and the tax code has many favorable provisions for real estate investors like the 1031 exchange, active participation exception, qualified business deduction, and maximizing depreciation expense via cost segregation. It is also a complicated financial endeavor. You are borrowing money to buy an asset via an expensive and time consuming transaction.
Whether your activity in rental real estate is active or passive matters for what taxes you pay and what income can be offset with losses. Passive income is not subject to payroll taxes (Medicare and Social Security) and, therefore, does not count towards your social security retirement benefit. All else equal, not paying into social security makes your future retirement benefit smaller. If you have losses in a passive activity, it can only offset other passive income (subject also to “at risk rules”) and any excess losses are carried forward to future years.
Price appreciation in this environment is a deadly double-edged sword. If it continues on an aggregate basis, housing’s oversized weight in the CPI will keep inflation elevated above the Federal Reserve’s target of 2%. CPI is currently 4.9%. If inflation does not come down to target, the Federal Reserve will continue to raise interest rates and perform quantitative tightening which will further crimp supply of existing homes for sale because owners won’t trade their mortgage rate, worsen affordability by pushing mortgage rates above the current 7% rate, and sew more economic uncertainty in the homebuilding industry thereby crimping supply of new homes.
There’s a good reason there’s an estimated 74 to 96 million owned cats and 70 to 80 million dogs in the U.S. With wagging tails, slobbery kisses, and little whiskers that make for adorable Instagrams, pets give us that warm, cuddly feeling inside. They are part of our families and some of our best friends. But, they can also be a substantial part of a personal budget, especially since it (hopefully) is a long-term commitment...
If you’re looking to lower your tax liability before the deadline, here are some options to consider.
More Americans are retiring earlier than you might think Planning for retirement is without a doubt a long-term project that takes years of saving and adjusting to prepare for successfully. It certainly isn’t a fix it and forget it endeavor. But no matter how well you prepare or how diligently you save, the reality is that health issues, company downsizing, a worldwide pandemic, or simply personal preference may put you face to face with an...
From retirement savings to living abroad, here are some of our commonly asked questions.
A clear understanding of what wealth looks like to you may help you build a financial strategy.
If you’re in your 50s and haven’t done much to save for retirement, you still have time.
For many Americans, the art of saving is something that they have yet to master. This is especially true for those who have just entered the workforce or have gotten their first good-paying job. The mantra of these young professional men and women is often to want to spend instead of saving, and it might be time that changed. Thus, we have brought together some of our favorite benefits of saving early, and how it can set you up for success.
