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Filling the Lower Tax Bracket Buckets

Financial Planning Dentist

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Kevin Taylor

Economic Indicators one of the six critical factors in Real Estate investing

Investing in real estate can be a smart way to build long-term wealth and financial stability. However, successful real estate investing requires a thorough understanding of the economic landscape in which you are investing. Economic indicators are important components of this landscape, providing insights into trends and patterns that can inform investment decisions. In this blog post, we will discuss why economic indicators are an important component of investing better in real estate, what economic indicators investors should watch, and how to understand their impact on future investments. Why Economic Indicators are important Economic indicators are important because they provide investors with critical information about the overall health of the economy and the real estate market. They can help investors identify trends and patterns that may impact their investments, such as changes in interest rates, inflation, and consumer confidence. By monitoring economic indicators, investors can make more informed investment decisions and adapt their strategies to changing market conditions. What Economic Indicators investors should watch There are many different economic indicators that real estate investors should watch. Some of the most important ones include: Gross Domestic Product (GDP) – GDP is a measure of the total value of goods and services produced in a country. Real estate investors should pay attention to changes in GDP, as it can indicate overall economic growth or contraction. Unemployment rate – The unemployment rate is a measure of the percentage of people who are unemployed and looking for work. Real estate investors should watch changes in the unemployment rate, as it can impact consumer confidence and the demand for housing. Interest rates – Interest rates are a measure of the cost of borrowing money. Changes in interest rates can impact the cost of borrowing for real estate investors and impact demand for housing. Consumer Price Index (CPI) – The CPI is a measure of inflation and the change in prices of goods and services. Real estate investors should pay attention to changes in the CPI, as it can impact the cost of living and the demand for housing. Housing Starts – Housing starts are a measure of the number of new homes being built. Real estate investors should watch changes in housing starts, as it can indicate overall demand for housing and the potential for increased supply. Understanding the impact of Economic Indicators on future investments Once investors have identified and monitored the relevant economic indicators, they must understand how to interpret their impact on future investments. For example, if GDP is increasing, this could indicate a growing economy with increased demand for housing. On the other hand, if unemployment rates are rising, this could indicate a slowing economy with decreased demand for housing. Investors should also understand how different economic indicators interact with one another. For example, if interest rates are rising, this could lead to decreased demand for housing. However, if GDP is also increasing, this could offset the impact of rising interest rates by increasing demand for housing. Economic indicators are an important component of investing better in real estate. By monitoring key economic indicators such as GDP, unemployment rates, interest rates, CPI, and housing starts, investors can make more informed investment decisions and adapt their strategies to changing market conditions. Investors should also understand how different economic indicators interact with one another to gain a more comprehensive understanding of the overall economic landscape. By doing so, investors can maximize their chances of success in the real estate market.

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Is there any positive financial reason to charge a credit card other than to raise my score?

Yes. Credit cards when used correctly (i.e. paying the entire balance off monthly) can give you incredible benefits. These include: Credit cards offer more protection giving you greater control over your money. Debit cards are riskier than credit cards. Money that is taken from checking accounts can be immediately withdrawn. Until the investigation gets resolved you don’t have access to that money. It could take weeks for your bank to resolve the issue and meanwhile, you may not be able to make other payments like mortgage, car, or student loan payments while you wait. If you notify your bank before charges hit your account you aren’t liable for the charges. You can be responsible for up to $50 of unauthorized charges if you notice the charges and tell your bank of the loss within two business days of the loss. The longer you wait the greater the charge (up to $500 between notifying your bank from 2-60 days). Longer than 60 means you’re potentially responsible for all the charges. Credit cards are protected from both fraud and the Fair Credit Billing Act. So If your card is physically stolen then you may be responsible for up to $50 in fraudulent charges however if you report it stolen before any charges are made there is no charge. If you’re still in possession of your credit card and the data is stolen from the card then you’re not responsible for any fraudulent charges. Credit Cards earn rewards From airline miles, cashback, perks at restaurants and bars, sign up rewards, etc. If you’re disciplined and pay your entire balance off each month then you can avoid fees and interest charges while accumulating additional benefits for money you’d already be spending. Debit cards typically don’t offer rewards. Build Credit History Not only is your score important but your history is as well. The longer you can show you are disciplined with your credit cards the better it is for you when you need credit. Debit cards don’t affect your credit score. Travel & Purchase Protection Trip delay insurance covers costs for things like hotels, clothing, food, and toiletries for up to $500 per person if your flight or other travel is delayed overnight or >12 hours. Purchase protection covers you up to $500 per claim and $50,000 per account for something you buy that is damaged, lost, or stolen. Some credit cards offer you extended warranties as well for an extra year of coverage on eligible purchases that come with the manufacturer’s warranty of three years or less. Debit cards don’t offer these benefits.

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