Welcome to the collaboration mini-series from our financial planning friends over at Colorado Wealth Group (CWG). Not all wealth management firms are fans of real estate; however, CWG believes that proper real estate investing, and passive income production, can enhance a financial plan. CWG has made a list of the top 5 reasons real estate investors need a financial plan when investing here in Denver, Colorado. Over the next five months, CWG will elaborate on the following topics.

  1.       Understanding the Tax Impact of Real Estate

Taxes are a common question when it comes to investing in real estate property. We will dive into how these investments affect your taxes today and in the future. Topics will include depreciation recapture, Medicare surtax, 2 of 5 rule, and 1031 exchanges.

  1.       Legacy Planning

Real estate can be used to leave a legacy. We will explore strategic ways to leave a legacy and how to efficiently pass real estate property tax to your beneficiaries. Topics will include how to take advantage of a step up in basis and using a Charitable Remainder Trust if you have a highly appreciated property.

  1.       Optimizing your Rental Portfolio

It is common for real estate investors to accumulate multiple “doors” and come to a point where questions start to arise. This month we will address the most common questions we get asked about Real Estate Investing.  If you have a specific question you would like answered, please contact us with “Key Renter Question” in the subject line to submit your question.

  1.       Asset Allocation

Real estate is an asset class that fits into an overall portfolio.  What is the right amount of real estate to own? Colorado Wealth Group helps bring objectivity into the conversation for proper asset allocation. Topics this month will include a historical look back at the correlation of real estate in the overall economy, a discussion around the impact of your primary home’s equity on your financial plan, and treatment of illiquid assets in a client’s portfolio.

  1.       Pros & Cons of Owning Investment Properties with an IRA (Self-Directed IRA)

One way to purchase real estate is through an Individual Retirement Account (IRA).  Oftentimes, this is money that came from an old 401(k) and is earmarked for retirement.  This month we will explore the pros and cons of using a Self-Directed IRA to purchase real estate.

We are looking forward to diving in with you over the next 5 months. If you have a question you would like us to answer, please email [email protected] with “Key Renter Question” in the subject line. To find out more information about Colorado Wealth Group or to schedule a complimentary consult, please visit our website www.coloradowealthgroup.com.

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