Financial Planning for Your Future

Written by Ken Austin

Continued from page 1

In planning for your financial future, you should identify your motivating factors. Ridding yourself of debts and attempting to appease family members are generally not motivating enough to keep you onrepparttar right path. Planning for your future involves developing a long-term plan that leads you torepparttar 149842 desired location. Figure out what you want to achieve and stick with your plan. Financial planning is about securing your future, not gaining immediate financial rewards.

Financial planning isrepparttar 149843 most important thing you can do to provide security for yourself and your family overrepparttar 149844 long term. Start planning now by making a sensible, maintainable plan and your reward will be a stable, secure financial future.

Ken Austin is the webmaster at and

Investment Property - Leveraging Rental Property Equity

Written by Richard A. Chapo

Continued from page 1

Our goal is to protectrepparttar $250,000 in gain onrepparttar 149841 rental property while also maximizing tax reductions. The first step is to refinancerepparttar 149842 property with, typically, an interest only loan. A percentage ofrepparttar 149843 equity gain is taken out ofrepparttar 149844 property and placed into an equity index insurance product. The equity percentage is arrived at by determiningrepparttar 149845 payment amount you can afford onrepparttar 149846 loan. Typically, it is tailored to match your current loan payment amount.

Going back to our scenario, what happens if property prices pull back 20% overrepparttar 149847 next year? You do not sufferrepparttar 149848 loss of $100,000 becauserepparttar 149849 gain is sitting in your equity index insurance product. Essentially, it is a wash and you have protectedrepparttar 149850 capital gains while capturing a stock market-based rate of return.

Ah, but it gets better.

Equity Index Insurance

The investment grade insurance product isnít just any policy. Instead,repparttar 149851 policy we use is tied to a stock market index. What ifrepparttar 149852 stock market suffers a loss? Not to worry, this policy carries a guarantee that you will never lose a dollar, even ifrepparttar 149853 market crashes. Ifrepparttar 149854 stock market did crash,repparttar 149855 policy would simply credit you with nominal growth forrepparttar 149856 year in question. In all other years,repparttar 149857 policy would grow withrepparttar 149858 stock market. On top of all of this,repparttar 149859 money inrepparttar 149860 insurance product grows tax-free.

So, what has been accomplished? First, you have protected your rental property equity gains from home price fluctuations. Second, you have leveraged your equity into two growth channels,repparttar 149861 stock market and appreciating house prices. Third, you have converted taxable growth [property appreciation] into tax-free growth [insurance].

With housing markets ready to cool down, this strategy effectively locks in your profits. Preserving equity gains should be a primary goal of any investment property owner.

Richard Chapo is with Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Visit article section to discover tax strategies and deductions.

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