Anyone who has purchased a home is familiar with the concept of leverage. Most people when they purchase a home use 20% of their own money and borrow 80% from the bank. If the amount of appreciation on the home is more than the cost of the loan (and other costs of...
The traditional asset allocation glidepath involves shifting client assets away from stocks towards bonds as they near retirement. The idea behind this is that doing so reduces volatility in the portfolio and helps protect against sequence of return risk—thereby...
The choice to use an advisor in retirement is one that will cost clients and their beneficiaries millions of dollars in both fees and opportunity costs as we’ll show later in this article. If advisors are simply allocating clients to traditional stock-bond investment...
With interest rates at near 20 year highs, guaranteed lifetime income allows you the ability to lock-in these rates for the rest of your life while creating better retirement outcomesIf you own a home, then you’re probably wishing you had locked in a mortgage rate...
Depreciation allows real estate investors to get a tax deduction every year. The downside with it is that they have to pay back the deductions they took when they sell the property—unless they utilize step-up in basis provisions.
The Benefits of Multi-Year Guaranteed Annuities over Taxable Bonds and Bank CDs In a previous blog post, we talked about the downside of taxable bonds. Namely that they are tax-inefficient, subject to interest rate risk, and don’t always provide downside protection in...