Article originally published by Barrons.com
Written by Cheryl Winokur Munk
“With valuations high and many boomers gearing up for or entering retirement, many investment property holders could be rethinking their strategy around real estate ownership.”
“It’s a big issue for many people nearing and in retirement given that there’s an estimated $6.4 trillion in net worth that people over age 55 have tied up in investment properties, according to estimates from Realized, a platform that provides real estate wealth solutions.
“Especially coming out of the pandemic, many older people may not want to deal with being a landlord anymore, having to perform tasks like rent collection and property management, says Rob Johnson, head of wealth management at Realized.
“While now could be a great time to exit with valuations so high, there are multiple things to consider before you just up and sell. Here’s what financial advisors are telling clients.
“Think ahead. Anyone considering selling an investment property should consult with tax, financial, and real estate professionals before making a decision. Ideally, these discussions will take place before the property owner retires to leave enough time to properly strategize, says Nell Cordick, senior vice president and financial advisor at Bogart Wealth, which has offices in Virginia and Texas.
“A major factor in these discussions should be taxes. “When people haven’t done the proper tax planning ahead of time, they are shocked at the tax results of selling an investment property. What they thought would be their net [proceeds from the sale] is much, much lower because of the tax consequences,” she says.”
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Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.