Financial Planning for Your Future

Written by Ken Austin


Millions of people give a lot of thought to financial planning but get frustrated and give up before ever making any progress. Making yourself aware ofrepparttar most common reasons people fail to make a viable financial plan isrepparttar 149842 first step in reaching your financial goals. The uncertainty ofrepparttar 149843 stock market, social security, andrepparttar 149844 declining world wide economy have made appropriate financial planning a must for every individual and family. Here are some tips that can make planning for your financial future a more successful experience:

A positive attitude isrepparttar 149845 most important factor in reaching your financial goals. If you continually have negative thoughts about your ability to plan for your future, you are most likely going to fail in your efforts. A good attitude andrepparttar 149846 desire to succeed in developing a proper budget and secure financial future will go a long way in helping you reach your goals. It is important to keep your long-term goals in mind and have a positive attitude about what it will take to reach those goals. In planning for your financial future, there is usually no instant gratification, but rather a long-range plan that will allow you to realize your financial dreams over time.

Investment Property - Leveraging Rental Property Equity

Written by Richard A. Chapo


Owning investment property is a tremendous wealth building strategy. Thousands upon thousands of individuals have amassed great wealth by investing in rental properties.

Unfortunately, few investment property owners learn how to leverage equity in a way that maximizes tax deductions while creating and locking in equity gains. Instead, they leave themselves open to price fluctuations inrepparttar residential property market. These fluctuations can wipe out or severely reduce equity positions in property.

Housing Boom To End?

There is little doubt we are coming torepparttar 149841 end of a huge boom market in residential properties. Forrepparttar 149842 last four years, properties have appreciated at unheard of rates. The question, of course, is what happens whenrepparttar 149843 market cools off? Will we simply see a price plateau or an actual drop in prices? While nobody is sure,repparttar 149844 clear consensus is property owners should move to preserve equity while they can.

Protecting Equity Gains

Protecting equity gains in your investment property requires careful planning. This leveraging strategy is fairly simple, but can sound complex. Please keep in mind this is just an introduction torepparttar 149845 investment property tax strategy. You will need to contact us to learn more.

The investment property tax strategy protects your equity gains by separating and leveraging them. The leveraging process is best explained with an example.

Scenario 1 Without Tax Strategy

Assume you purchased a rental property in 1999 for $250,000 with nothing down. As of July 2005,repparttar 149846 combination of loan payments and appreciation has resulted in a gain of $250,000. You have amassed wealth, but all of it is at risk. If prices drop twenty percent overrepparttar 149847 next year, you will lose $100,000 of your equity inrepparttar 149848 rental property.

Scenario 2 With Tax Strategy

We are going to userepparttar 149849 same exact scenario. It is July 2005, you have $250,000 in rental property equity, but all of it is risk. You decide to implementrepparttar 149850 investment property tax strategy andrepparttar 149851 following occurs.

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