Term
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Definition
Direct Investments Types
-As the investor, you hold the title to the property
-A vacation home, duplex or small apartment building. It also includes hotels, office buildings, stores, Rental property, and undeveloped land |
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Term
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Definition
Indirect
-Real estate syndicates or limited partnerships
-Real estate investment trusts
-REITs are similar to a mutual fund
-Investing in first and second mortgages |
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Term
| Disadvantages of Real Estate Investments |
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Definition
-Illiquidity (direct investments)
-Declining property values
-Lack of diversification
-Lack of a tax shelter for real estate syndicates
-Long depreciation period
-Management problems |
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Term
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Definition
REITs
-Do not pay taxes
-Must distribute 90% of earnings to shareholders, thus have high yields
-Typically listed as a stock on major stock exchanges |
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Term
| tax sheltered partnerships |
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Definition
-Marketed by major brokerage houses
-Industries include
-Real estate
-Oil and gas
-Telecommunications
-Most tax sheltered partnerships are not good deals |
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Term
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Definition
| Passive activity loss rules limit “tax” loss deductions |
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Term
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Definition
Gold
-A hedge against inflation/uncertainty |
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Term
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Definition
Gold & Silver
-streetTRACKS Gold Shares (GLD)
-iShares Silver Trust (SLV)
Others
-United States Oil Fund (USO)
-Currency Shares Japanese Yen (FXY)
-Currency Shares Euro Trust (FXE)
-iShares Commodity Indexed Trust (GSG) |
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Term
| What Are Prenuptial Agreements? |
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Definition
-Waive rights to each other’s property that was acquired before the marriage
-Agree on a settlement if you should divorce |
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Term
QDRO
Qualified Domestic Relations Order |
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Definition
QDRO
-Qualified Domestic Relations Order
-Avoids tax resulting from split of retirement assets
-Must have written agreement of spouses
-Covers pensions/401-k, not IRA
-Falls under ERISA, thus overrules pre-nuptial and state divorce laws |
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