Choosing a financial advisor can seem overwhelming when you first start…especially if you’ve never delved into the financial world yourself. It can be tough knowing what to look for. However, there are some strategies that you can utilize to find the advisor that gels with your needs the most and will help you reach your ultimate goal. Making use of these three questions will undoubtedly land you with the advisor that can help you trek down the path you desire.
If you have a rental property or rent rooms in your residence, there are a few things you should know. Here’s how to navigate taxable rental income: Rental property income includes all advance and current rental payments, as well as penalty fees, e.g., fees charged for late payments. Should a tenant cancel their lease, the money forfeited from security deposits is still rental income. You should also report any property or services you receive in lieu of rent at their fair market value. For more information about rental income, speak to a tax professional or read IRS Topic 414 – Rental Income and Expenses. Tip courtesy of IRS.gov
Are brokers worth the fees they charge? Ask any investor this question and you likely receive one of the three very short responses: No, maybe, or yes. I will be the first to admit that I have asked myself this question on multiple occasions. Recently I was reviewing a prospective client’s investment account and asked, “Why is she even paying this person?”
When you buy into a mutual fund, you have to pay for the expertise of the fund manager and the research that goes into choosing assets for that fund. That cost can vary widely between funds. As a result, some experts believe you should stick to funds with the lowest available costs. In other words, why should you be paying any more than absolutely necessary, when that cost comes directly out of your pocket? This is not a bad strategy, but it may not always be the best idea for your situation. Let’s look at an example. Say an investment returns 10 percent and the cost is 1 percent; in that case, your net return is 9 percent. If another investment with the same return costs only a quarter of a percent, your net grows by three-quarters of a percent, to 9.75. So the argument says that if two funds […]