Mailbag: Rental Properties, Advisor Reviews, and More

Today’s Prep:

We are opening up the mailbag today to answer some listener questions. We will be discussing rental properties, taxes on sold businesses, and changing advisors based on investment performances.

Equipping Points:

How can you make wise decisions with your investments? From rental property to the stock market, you want your investments to be worthwhile. Eric answers three questions to help guide listeners through important investing decisions.

Ernie in Grimes is interested in buying a rental property or two. Should he wait until his mortgage is paid off first? Eric says to think about the reasons why you want to do that. A rental property is an asset that can appreciate. It’s a business decision. Make sure you consider the risks of having a rental property.

Rebekah in Des Moines recently sold her business and retired last year. She and her husband are now planning to sell the building that the business was in. What are the tax implications on a sale like this? Eric talks through what kind of taxes you may need to consider. You’ll want to avoid penalty fees by paying the taxes ahead of time.

Woody’s investments didn’t do well the past year. Should he reevaluate his financial advisor based on this underperformance? Eric says it’s not necessarily due to something the advisor did wrong. You need to look at how much risk you’re willing to take and see what improvements could be made. If you wanted to be a moderate or conservative investor, you may have more bonds in your portfolio. Does your plan align with your investments? Planning should come first, then the selection of the investment or the allocation should come second.

Reach out to Eric and his team to get a retirement readiness review and assess whether your plan, your goals, and your investments are all aligned.

Listen to the entire episode or skip ahead using the timestamps below.

0:46 – Should I pay off my mortgage before buying a rental property?

4:21 – What are the tax implications on selling a business building?

8:03 – Should I reevaluate my advisor based on portfolio performance?

Today’s Takeaway:

Planning should come first, then the selection of the investment or the allocation should come second.

-Eric Peterson

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

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