Eureka Wealth Management | Blog | Financial Planning Palm Springs

Our Recent Posts

Replacing your investment property tax-free (1031 exchange)

If your investment real estate is sitting on a comfortable gain, you may be wondering what you can do with this new found wealth. Simply selling the property would put a stop to your rental income and the gains would be taxed. A better strategy might be to replace your real estate with something better. Using a 1031 exchange, you can sell your current rental property, find something new and not pay any capital gains tax. Certain rules must be followed, but if you’re successful, you could defer the entire capital gain from your real estate while upgrading to something more expensive, bigger, better, something that might produce even more rental income. To keep gains long-term, you must have h

How to make art part of your investment portfolio

Who doesn’t want to include high-priced art in their portfolio and call it an investment while enjoying its magnificence over the fireplace? Top-shelf fine and contemporary art, aka “Bluechip art,” with prices starting at $1m per piece is out of reach for most people. However, the potential return from investment is matchable only to that of a successful technology startup. The fine art market return outperforms the S&P 500 by 10%^2 annually, with seemingly less volatility. Banky’s “Red Balloon” sold for $1m last year after being shredded live before the crowd, suddenly increasing its value x10. Leonardo da Vinci’s “Salvator Mundi” was acquired before restoration in 2005 for less than $10k a

The risk of being too conservative with your investments

Some people don't like the stock market. Confidence waned since the 2008-2009 Financial Crisis with fewer people participating^1 in the stock market since before the crisis. Yale University has reduced its domestic stock allocation to 3% in favor of venture capital and other private placements^2. Those who lacked the gull to go back into the market missed out on a 200% increase in the S&P 500 since the 2009 bottom. Yale's decision to allocate away from publicly traded stocks aren't in a vacuum. Millennials have preferred cash and alternative investments over stocks. “2% of Millennials are investing conservatively, compared with 38% of Generation X investors and 23% of baby boomers, accordi

Why expats may see their Social Security benefits reduced in retirement

If you've lived and worked in both the U.S. and abroad, then you may have participated in two different social security systems. If this is the case, then you may see a reduced U.S. Social Security benefit due to the so-called Windfall Elimination Provision (WEP). This penalty can you reduce your benefits by as much as $448 per month (2018), for those who start their benefits at their full retirement age, 67 for most people. This means that if your Social Security benefits statement shows a benefit of $2,000 at age 67, you should then subtract up to $448 from this benefit if the WEP applies to you. The WEP applies to anyone who worked for an employer who did not participate in the U.S. Socia

The dragon is no longer sleeping

The beauty of this market and looming risks

Will social security run out?

Replacing your investment property tax-free (1031 exchange)

How to make art part of your investment portfolio

The risk of being too conservative with your investments

Why expats may see their Social Security benefits reduced in retirement