A 1031 exchange, also known as a like-kind exchange, is a provision in the IRS code that currently allows real estate investors to defer paying capital gains taxes on an investment property when sold, as long as another similar property is purchased with the profit gained. Details This only applies to investment or business properties, […]
Imagine you wished to acquire coal, yet you only had fur or food to trade. Imagine you wished to acquire a telephone but you only had gold to exchange. This exchange is possible, but it’s extremely inefficient. Standardized currency solves this problem by creating a form of exchange and liquidity that is essential for the […]
I wish to remind you if you lose 50% on a position, to get back to zero you require a 100% return. Index funds are useful and paying extravagant fees is not helpful. However, throughout my career what I have found most important is don’t lose money ever. During booming market cycles it can be […]
A covered call is an options trading strategy where an investor: Owns the underlying stock Sells a call option on that same stock. This strategy is called “covered” because the investor owns the stock and can deliver it if the call option is exercised. How It Works You sell a call option to a counter […]
A naked put is an option trading strategy where an investor sells a put option without holding a short position in the underlying asset if assigned to the option terms. Here’s what that means: A put option gives the buyer the right to sell a stock at a certain price before the option expires. When […]
It appears to me there is zero value to inflationary policy. I understand why a business would wish to increase prices as they become more desirable as a result of the success of their product. However, to artificially induce inflation is a terrible idea. Inflation erodes purchasing power: As prices rise, the same amount of […]
A Charitable Remainder Trust is a type of instrument that allows a donor to transfer assets to a trust, receive income for a specified period, and then have the remaining assets go to a charitable cause. It is a tax-exempt entity that offers a way to support charitable causes while also providing income to the […]
