A recent, true-life client situation is the inspiration for this month’s post. Dr. Tony* and his wife, Sam*, had just made a bid on their “forever” home in California. We had prepared a plan scenario to determine the amount of home they could reasonably afford given their long-term goals and projected income and savings. After some expected haggling, they emailed to tell me their bid had been Continue reading
real estate
Are you house-poor? A case study
“I think we are house-poor,” said Greta*, a physician client who lives with her husband, Zeke*, on Long Island. We were only part-way through developing their IFP (Initial Foundation Plan) so I didn’t yet have a grasp on whether this statement was simply a feeling or based on difficulties with their cash flow and the inability to reach Continue reading
Does it make sense to keep your old house? [VIDEO]
Johanna talks about issues you should consider when deciding whether to rent out your old home. But there may be situations which lend themselves to renting out your house – let’s talk about it in my Vlog, When to Convert to a Rental. Continue reading
The Tax Bill: WIIFM (What’s In it for Me?)
The Senate finance committee passed the “Tax Cuts and Jobs Act” and the Senate is due to vote on it after Thanksgiving (2017). This bill is packed with a lot of changes. So, if you’re a physician family and/or a high earner, what’s in it for you? Continue reading
What You Need to Know About 1031 Exchanges
Section 26 of the US Tax Code, a.k.a. the IRS federal tax code, is about 75,000 pages long. Out of those 75,000 pages, one section is so popular that it is known by number alone Continue reading
Should You Invest in Real Estate?
If there is one thing I’ve learned as an advisor to physicians, it’s that most doctors either own investment real estate or plan to in the future. In our discussions, it’s not usually even a question of “Should I?” but “How soon can I? Continue reading
Should I buy rental property?
Some people have a natural affinity and knack for finding great pieces of real estate. You
should consider these issues if you’re thinking about becoming a landlord: Continue reading
Why I’ve Learned to Respect Reverse Mortgages
When you hear the term “Reverse Mortgage”, you may imagine a slick sales scheme peddled by old TV actors (the Fonz!) trying to drum up business and trick seniors into risking title to their homes. And, truth be told, that wasn’t far from the truth until the FHA and HUD changed the rules Continue reading
Tax Planning with a 266 Election
Do you own any vacant land for investment? If so, you have costs associated with that land, such as loan interest, real estate taxes, and “carrying charges” including mowing, insurance, HOA fees, and maintenance. The IRS allows you to Continue reading
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