What is Asset Allocation?
Asset allocation involves dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The process of determining which mix of assets to hold in your portfolio is a very personal one. The asset allocation that works best for you at any given point in your life will depend largely on your time horizon and your ability to tolerate risk.
What is the difference between Tax Preparation and Tax Planning?
Tax preparation happens yearly when you meet with an accountant to discuss your previous year's taxes. Tax planning is proactive action you can implement throughout the tax year, before tax prep season, to potentially save taxes and boost your financial standing. There are many tax savings strategies, such as contributing to retirement plan fund, filing for charitable donations and taking advantage of medical benefit deductions. To benefit from these strategies, you must keep accurate records to prove the validity of each exemption applied. Many people benefit greatly from the advice of an advisor who can suggest the appropriate tax strategy for your personal situation.
Why Invest in Real Estate?
All markets (stocks, resources etc) have cycles and periods of upturns and downturns. Real Estate offers the ability to diversify into an area often underserved in many consumers' portfolios. The ability to collateralize directly to an actual asset makes Real Estate an attractive option.