Ira Rapaport

As retirement approaches, individuals attempt to understand how much money they will need to satisfy their living expenses. Many believe they must reach a certain threshold of savings before they feel comfortable entering retirement. The conventional wisdom is to look at the “Multiply by 25” rule, or the “4 Percent Rule”: Multiply by 25 Rule: Estimate the necessary savings amount by looking at […]

One of the primary benefits of retirement accounts (IRAs, employer-sponsored plans, etc.) is that growth and earnings in the account are tax deferred; the funds are not taxed until they’re withdrawn. However, the federal government only allows individuals to delay withdrawing funds for so long and eventually requires distributions in the form of “required minimum […]

Market capitalization (or market cap-weighted) funds weight each holding according to its respective market-capitalization size. Market capitalization is the total dollar value or financial size of a company. The stocks with higher market capitalizations will have the greatest weights, which leads to these holdings having more influence on overall performance. Although market cap-weighted index funds […]

Company stock (equity) programs are additional ways for employees to be compensated. Numerous types of equity award programs exist; however, the most common are typically employee stock options and restricted stock. EMPLOYEE STOCK OPTIONS Employee stock options (ESO) are a form of compensation granted by companies to certain employees and executives. ESOs allow employees the […]

When investors compare equity investment funds, they are categorized as having a “growth-style” or “value style.” Although these funds may invest in similar companies, their approach toward identifying securities is different. Growth-fund managers tend to focus on companies they believe will have faster-than-average growth in revenue, earnings and cash flow. Fund managers will look at […]

A power of attorney is a legal document giving one person (the agent or attorney-in-fact) the ability to act or make decisions for another (the principal). In the event of incapacity or disability, it may become necessary for someone to make financial decisions on your behalf, such as paying bills, selling investments or even changing […]

When an investor initially acquires an asset, the term for the price paid is “cost basis.” Going forward, the cost basis may be adjusted for improvements to the asset, depreciation, reinvested dividends, etc. The adjusted cost basis (or tax basis) determines the amount of taxable capital gain or loss associated with any subsequent sale of […]

During periods of increased market volatility and high correlation between traditional asset classes, some investors seek alternatives to traditional equity and fixed income securities. Typically, the primary goals of adding a new alternative asset to a portfolio are to increase diversification and enhance the overall risk/return profile. There are various types of alternative mutual fund […]

When appreciated investment property is sold, the investor may be subject to a large tax liability at the time of the sale. However, the IRS has a special provision (IRC Section 1031) that permits an investor to defer paying tax on a gain if the proceeds are reinvested into a similar property. A qualified like-kind […]

For investors seeking an attractive yield and diversification benefits within their portfolios, triple-net leased (NNN) real estate investments may present an opportunity. NNNs tend to have a relatively stable yield and returns relative to the risk level assumed. WHAT IS A TRIPLE-NET LEASE? An NNN refers to a type of lease in which the tenant […]

Preferred securities are a unique, hybrid investment that share characteristics of both fixed-income and equity securities. Preferreds typically provide investors with a fixed payment, similar to a bond’s interest payment; however, they lack the guarantees a traditional bond has. In terms of their capital structure, preferred securities are also subordinate to normal fixed-income instruments, yet […]