Controversial Finance Rules to Follow

5 Controversial Personal Finance Rules That I Live By

Paying off a 30 year home mortgage must feel incredibly liberating. Decades of effort have finally paid off leaving you with a huge increase in cash-flow and sense of accomplishment. And that’s certainly true, especially if you don’t take another loan, but that doesn’t mean you should be paying off your house faster than the amortization schedule. Especially in this low interest environment, paying off your home faster than normal actually loses you money. How? Through opportunity loss, when you use your extra savings to pay down a low-interest mortgage your are losing the chance to earn a much higher risk-adjusted return (7-10% without much work) in the stock market.

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7 Proposed Changes to IRA Accounts and How They Could Alter Your Retirement Plan

The major problem with this proposal is that we’re no longer talking about the mega-wealthy here, this hurts middle class investors who don’t make the majority of their earnings from investments but want access to private equity. The vast majority of Regulation D (private equity, rather than public stock) offerings are made to accredited investors. Further, these investments are typically not highly liquid, or their current value is unknowable. Even with the 2023 deadline many investors are going to have their investment assets distributed. That means that they will be forcefully removed from tax-sheltered accounts, taxed at their income-tax level, penalized for early withdrawal and placed within taxable accounts so that future earnings are also

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5 Tax-Sheltered Investments That You Didn’t Know About

Most casual investors aren’t aware that they could own real estate in an IRA, HSA and even some 401Ks. Not just the ability to access real estate through REITS, IRAs can actually hold tangible rental real estate. Though typically riskier (and demanding more time and expertise) than a broadly diversified mutual fund portfolio, owning rental properties, private equity, or even a business within your retirement accounts is a secret that wealthy investors have known about for years and that has the potential to significantly increase investment returns, if you know what you’re doing.

The major benefit of holding alternative assets in a etirement account is

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