Gilbert Wealth Articles

How to Calculate Adjusted Cost Basis for a Rental Property

Investing in a real estate property can be a great source of income and capital appreciation while also providing an owner with a tangible asset to take pride in. As any new owner will soon find out, real estate investing has a number of unique tax benefits and considerations. A key element of this tax planning is determining the Adjusted Cost Basis for a property which impacts the overall taxable gain an owner might have when selling the property.For more on the broader tax implications of selling a real estate property, see Tax Implications of Selling a Rental Property – Gilbert…
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How to Own Investments

To become a better investor, you must understand the basics of investments. If you are a beginner investor, it may be confusing on how to get started with investing. There are three primary decisions to make when investing:What investments should you own?How should you go about buying them?What accounts should the investment be held?This article covers the first two questions, and a later article will cover the third.  What is an Investment An investment is an asset whose purpose is to generate income or appreciation. Income could be in the form of dividends, interest, rent payments received, or business distributions.…
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Ways the World is Getting Better

In today's fast-paced, interconnected world, it often seems like doom and gloom surround us from every direction. With the relentless stream of negative news and alarming headlines increasingly dominating media outlets, it's easy to fall into the trap of believing that the world is devolving into a state of chaos. Despite the barrage of negativity, it is crucial to remember that there is another side to the story—one that reveals a brighter, more optimistic reality.It's true, the world we live in is not perfect, and we still face numerous challenges that demand our attention and commitment. Environmental challenges, social inequalities,…
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The Long View: On Being Bearish or Bullish

The stock market has a rich history of fluctuating between periods of bullish and bearish sentiment, shaping the overall trajectory of long-term returns. Understanding the dynamics of these market cycles is essential for investors seeking to capitalize on opportunities and navigate the ever-changing landscape. In this article, we will explore the significance of historic bull and bear markets and how their interplay has contributed to the overall growth of the market over time. What is a Bull Market and a Bear Market? A bear market is marked by a prolonged period of declining stock prices, often accompanied by investor pessimism,…
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Portfolio Losses: The Mathematics of Recovery

Investing in financial markets always carries a certain level of risk, and even the most astute investors experience portfolio losses. When portfolio losses occur, a challenging reality sets in: recovering from these losses requires more significant gains than the initial losses themselves. In this article, we will delve into the concept of portfolio losses and the uphill battle investors face when attempting to regain lost ground. Portfolio losses refer to the decline in the overall value of an investment portfolio, resulting from a combination of factors such as market downturns, poor investment decisions, or unforeseen events. These losses can be…
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The Win-Win Strategy: QCDs and Charitable Contributions

What is a Qualified Charitable Distribution? A Qualified Charitable Distribution (QCD) is a direct transfer of money from an Individual Retirement Account (IRA) to a qualified charitable organization. QCDs have gained popularity in recent years due to their unique advantages for both retirees and philanthropic causes. Unlike traditional withdrawals from an IRA, QCDs allow individuals aged 70½ or older to donate a portion of their Required Minimum Distributions (RMDs) directly to a qualified charity, bypassing taxable income.Qualified Charitable Distributions (QCDs) offer a unique opportunity to impact charitable causes while optimizing your retirement savings positively. By leveraging QCDs, you can enjoy…
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What is a Value Stock or Fund?

What sets value stocks apart from their counterparts is the fundamental principle of purchasing at a discount. Value investors aim to identify stocks trading at a lower price relative to their intrinsic value, believing that the market has undervalued them. This approach involves assessing a company's financial health, analyzing its assets, earnings, and potential for growth, among other factors. By focusing on the underlying value rather than short-term market fluctuations, value investors seek to obtain long-term gains from holding good companies until their true value is realized.This article reviews why value stocks are important, where value fits into a portfolio,…
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Unraveling the Numbers: A Comprehensive Guide to Social Security Benefit Calculation

Social Security benefits are one of the cornerstones of anyone looking to retire in the US. A retiree's Social Security benefit provides them with a monthly stream of income that adjusts each year for inflation and lasts for as long as they live. While the actual formula used is complex and beyond the scope of this article, understanding the major components of the calculation will help maximize your Social Security benefits over your lifetime. Key Ideas Delaying Your Benefits Increases Your Monthly Amount Reviewing Your Earnings Record to Catch Mistakes Early Filling Your Top 35 Years Increases Your Benefits Understand…
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Charitable Giving through a Donor Advised Fund

A Donor Advised Fund (DAF) is a specialized account for designed to facilitate charitable giving. A Donor Advised Fund is a valuable tool to consider for anyone who is charitably minded as it provides a number of benefits such as tax deductions, tax-free growth, and charitable flexibilitye What is a Donor Advised Fund and How Does it Work? Donor advised funds have become increasingly popular in recent years as a way for individuals to manage their charitable giving. These funds allow donors to make a contribution of cash or appreciated assets to a public charity, which then establishes a separate…
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