Taking Your First Financial Steps
When you’re ready to take your first financial steps, do not rush into investing! You have three important steps you should tackle first.
Like-Kind Exchanges or 1031 Exchanges
A like-kind exchange, or 1031 exchange, is used to defer the capital gain on the exchange of business or investment property for the same kind of property.
Disability Insurance
Disability insurance is a key component to a stable financial foundation. Disability insurance ensures maintenance of lifestyle, and income, should an individual become unable to work.
Viatical Settlements
A viatical settlement is a risky investment that allows an investor to profit from a life insurance policy of a terminally ill policyholder.
Basics on Stock Symbols
All securities listed on either the New York Stock Exchange, the American Stock Exchange, or the NASDAQ system are identified by a unique stock symbol or ticker symbol. The stock ticker symbol appears on the “ticker tape” that scrolls across the bottom of most financial news programs whenever the stock is traded. A stock’s symbol also provides the investor with some basic information about the company.
Rental Income and Expenses
Owning an rental property comes with some tax implications, and not just the great “tax write-off” you’ve heard about.
Travel and Other Employee Business Expenses
There are plenty of business expenses that are deductible if they are not fully reimbursed by your employer. Recordkeeping for these expenses is important too.
Managing Your Liquidity
The risk of investing in bonds depends on the type of bond, the quality and the holding period.
Moving Retirement Plan Assets—Transfers and Rollovers
When rolling assets from a retirement plan to an IRA, you need to careful not to take possession of the funds, otherwise you could trigger a taxable event.
Roth IRA
One unique feature of a Roth IRA is that distributions are not mandatory during the account owner’s lifetime, so the account can be left to heirs.