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concern. Still, the market always ebbs and flows, and most presidents leave office with normal markets. HOW DOES THE ELECTION AFFECT MY PORTFOLIO? However, what impacts your portfolio more may be congressional elections, which decide who our lawmakers are. Law creation, divided government, and responses to those laws influence portfolio performance more than most presidential elections. Remember, the market responds to reaction, and whom we elect to Congress and how they legislate more directly impacts our lives than the president. The pandemic that has rocked 2020 has given us plenty of lessons on market volatility. As COVID-19 swept across the U.S., many residents had to shelter in place while industries shut down for an unprecedented hiatus. Financial planners and analysts encouraged patience to allow this storm to pass while they tried to identify long-term change. As we’re still recovering from this pandemic, so is the market, which could have an influence on the correlation between the election and the stock market. That said, if the past 100 years are any indication, you have little to worry about. Whoever occupies the Oval Office in 2021 will have very little influence on your portfolio. Your best financial strategy is to do the same thing you’ve been doing throughout the pandemic: Remain patient.
As Americans head to the polls to exercise their right to vote in the presidential election, they bring many issues and beliefs with them. For some voters, these include questions about their portfolio and how the winner of the election could impact their savings, retirement, and ultimately, their future.
The answer, many financial analysts say, is not much.
Analysts have found that the market has remained stagnant in the year leading up to an election for the past 100 years. Although there hasn’t been any significant change to warrant concern, voter concern over uncertainty tends to be reflected in the market. After the ballots are counted and a president-elect is chosen, the market may see a downward trend if a new president (not incumbent) takes office. Again, this is likely due to uncertainty and
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Over the last few months, I’ve chatted with many of my investors about new properties that popped up on my radar. You might be one of the people I emailed with details, including what the cash flows and expected returns would be. During those exchanges, many of you raised concerns that the profits and returns would be smaller than what I projected because I’d need to pay Uncle Sam a nice chunk of that profit in capital gains tax once the property sold. I always appreciate investor advice, but here’s the good news about paying capital gains tax: You don’t have to! Real estate is one of the only investments that allows you to sell an asset and defer the taxes that you would ordinarily have to pay on the sale. That means that while selling property isn’t tax-free, you can defer the capital gains taxes for as long as you want!
The trick to making this work is that you have to reinvest the proceeds from the sale of the property into another real estate investment property. It doesn’t have to be the same kind of property, though. For example, we could sell a 30- unit apartment complex, then take the $300,000 profit and purchase an office building, shopping center, or self-storage facility. Heck, we could even purchase farmland if we wanted — all without paying a dime in taxes! That doesn’t work with ANY other investment. You can do this as many times as you want, and all of the capital gains will be deferred and rolled into the next investment property. Just imagine how quickly your wealth will grow if you defer these taxes time and time again! This is a huge advantage that many of you have been missing out on with your past investments.
calling me at 319-350-5378 or sending me an email at Darin@HeartlandInvestmentPartners. com. Use the code words “Tax Deferral” and I’ll share the information on two of our upcoming investment properties you can get in on without paying those pesky taxes until you want to. This is just more proof that investing in real estate will build your wealth, even in this economy! –Darin Garman
Read that again: YOU CAN DEFER THE TAXES FOR AS LONG AS YOU WANT!
If you want to stop paying capital gains taxes before you’re ready, you can start right now by
2 DARINGARMAN.COM
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