Real Estate: 1031 Exchange Examples

Woman working on a 1031 exchangeWhen investors want to diversify their portfolios, they often consider real estate. But if you’re interested in real property, you need to know the ins and outs of purchasing and selling. One method many investors rely on is called a 1031 exchange. By following the rules for this type of exchange, investors can defer their capital gains tax while working towards better and bigger properties. Understanding how a 1031 exchange works is crucial to its success, though. Here are a few example scenarios to help you get familiar with it.

Taxes and real estate can get confusing. Consider working with a financial advisor as you work to make sure your real estate investing is as tax efficient as possible.

What Is a 1031 Exchange?

A 1031 exchange is a tax-deferment strategy often used by real estate investors. In this process, the owner of an investment property (or multiple) sells their original property and buys a like-kind property as a replacement. By following the IRS’s rules during this procedure, they defer capital gains tax.

A like-kind property exchange doesn’t mean you need to swap the exact same type of building. They also don’t need to share the same quality, only their character or class. For instance, a vacant lot is like-kind with a real property improved with a rental building. You can tailor your exchange to meet your goals and needs as long as it meets the requirements laid out in Section 1031. However, investors should note that real estate within the U.S. cannot be like-kind with any property outside the country.

The process also requires the use of certain channels. Namely, you need an exchange facilitator. According to the IRS, this is a “qualified intermediary, transferee, escrow holder, trustee or other person that holds exchange funds for you in a deferred exchange” under the applicable terms.

There are also four different types of 1031 exchanges: simultaneous exchange, delayed 1031 exchange, reverse exchange and improvement exchange.

1031 Exchange Examples

A 1031 exchange requires you to fulfill two crucial rules.

First, there is a minimum value requirement. The new property, or properties, must have a purchase price equal to or more than the amount you sold your real estate for. So, if you sell your property for $600,000, then you must buy a replacement property worth at least that much.

The second requirement applies to financing. Essentially, anyone with a loan on their original property must carry the same amount of debt or more with the replacement property.

Here are some examples to illustrate how a 1031 exchange works.

Example 1: The Basics

Tax payer preparing to pay capital gains taxSuppose you are a real estate investor. You choose to sell your current property with a $150,000 mortgage on it. It sells for $650,000. If you want to meet the conditions for a 1031 exchange, you much purchase a replacement property for at least $650,000. In addition, you need to borrow a minimum of $150,000 to pay for it.

Sounds straightforward, right? But we all know the real world is a little more complicated than this. The following examples show you how the situation may change.

Example 2: Higher Value Replacement

It’s unlikely you’ll find a replacement selling for exactly the same amount as your original property. With that in mind, let’s say you sell your property with a $300,000 mortgage on it for $500,000.

While searching for a replacement, you find a property you want to buy. But it’s valued at $700,000. In that case, you contribute $200,000 out of pocket and purchase the replacement with a $300,000 loan and $400,000 of cash. Like this, you can still defer taxes since you satisfy the two basic requirements.

Example 3: Increased Leverage

One concept in real estate is known as leveraging. Basically, it means using debt, such as a loan, to buy an asset, like property. Investors can increase their leverage using a 1031 exchange, allowing them to invest in a higher-value property. As a result, they can not only improve their cash flow but multiply the rate they build equity at.

So, suppose you sell one of your first investment properties for $500,000. You still owed $100,000 on the mortgage at the moment of sale. But you want to set your sights higher. As a result, you move to purchase a property that costs $1 million.

You use the total profit from the sale at $400,000 and take out a new loan worth $600,000. With this, you meet the 1031 exchange requirements.

Example 4: Partial 1031 Exchange

It’s actually possible to sell an investment property and satisfy the 1031 exchange rules without using all of your sale proceeds. This is called a partial exchange. However, buying a replacement for a lower cost than the original property’s sale price or taking out less financing will result in taxes.

For instance, we’ll say you sell your original property for $650,000. It had a $200,000 mortgage leftover. You then purchase a property for $500,000 but still take out $200,000 for the loan. The $150,000 in profit unused becomes taxable income.

Essentially, you still defer taxes on the better part of the sale from the first property. But the money that you didn’t put into the replacement still faces capital gains tax or depreciation recapture.

The Takeaway

Aerial view of a plot of real estate

A 1031 exchange comes with a few advantages, including deferring capital gains tax, expanding your portfolio and more control during the sale of property. And the way you go about your exchange can vary depending on your goals and needs. Before pursuing a 1031 exchange, research the requirements in depth and consider speaking to a financial advisor. Similarly, any investors interested in real estate should do the same. A financial professional can guide you through the rules and consequences which could impact your future investments.

Tips for Investing 

  • Many investors use real estate, whether through REITs or physical property, to diversify their portfolios. However, you may want guidance before you change your investing strategy. If so, consider speaking with a financial advisor. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • You may already be making strides to reach your retirement savings goals, complete with a strategized investment portfolio. Perhaps you even have an emergency fund safety cushion prepared for sudden changes. But maybe it’s time to diversify, earn greater returns or a passive income. In that case, real estate might be your golden ticket. Just research the historical trends and expected performance beforehand.
  • Most advisors recommend having a diversified portfolio. Adding real estate can offer additional diversification and non-correlated assets to your portfolio. Our asset allocation calculator can help you determine how much of your portfolio to invest in real estate.

Photo credit: ©, ©, ©

The post Real Estate: 1031 Exchange Examples appeared first on SmartAsset Blog.


Navigating the Current Job Market and Empowering Workers

We’re four months into our new pandemic-altered reality, and while businesses straddle the line between reopening and shuttering (again), many Americans are finding their jobs no longer exist. Last week, 1.3 million Americans applied for unemployment insurance for the first time. Self-employed, independent contractors and gig economy workers — a vital and burgeoning contingent of today’s workforce — remain especially hard hit. 

Is there a light at the end of the tunnel? It depends on who you ask and how you approach it.

Nearly 13 million Americans are receiving unemployment benefits via the Pandemic Unemployment Assistance (PUA) program, which aims to help gig economy workers and those not traditionally eligible for unemployment benefits. PUA recipients make up 41% of the 31.5 million total unemployment benefit recipients nationwide as of June 13, according to recent Labor Department statistics. 

Even with these guardrails in place, not everyone is benefitting.

The racial inequality workforce problem

For Black Americans, long-standing racial inequities have made the financial impact of COVID-19 even more extreme. According to the Pew Research Center, 44% of Black Americans reported that they or someone in their household experienced a job or wage loss due to COVID-19, compared to 38% of white Americans. More than two-thirds of Black adults (73%) said they did not have emergency funds to cover three months of expenses, while just 47% of white adults said the same.

What’s more, an analysis of Labor Department data by the University of California, Santa Cruz found that more than 2 out of 5 Black small businesses and self-employed workers have been forced to shutter during the pandemic — well over twice the rate of white businesses. 

At Steady, we’ve created a platform that helps people find high demand jobs, increase their income and plan for more financially stable futures. We recently opened up an emergency cash grant program as a result of the pandemic, and so far, 46.5% of our applicants have been Black. 

Navigating the new job market and how we’re helping workers

It’s devastating to see American workers hurting and to so clearly witness how racial inequities are compounding that hurt. Steady recognizes how challenging life is right now and we want to serve as an immediate resource for those who need work and/or additional income.

Mint has long supported people in managing and optimizing their finances, so with all of the hardship brought on by COVID-19, it made sense to join forces with Steady to encourage personal financial empowerment for all Americans. On average, Steady members earn more than $4,000 per year in additional income and in response to COVID-19, we’re offering emergency cash grants, telemedicine support and rapid ACH cash deposits.

What will the future hold?

Pre-pandemic, we lived in a world where there were more jobs than job seekers, or at least a healthy 1:1 ratio. Now workers are struggling in a world where there’s maybe 1 job for every 4 job seekers.

Together with Mint, Steady is here to help everyone navigate these difficult times. We’re committed to empowering workers and helping people find jobs that are still in-demand and right for them. To get started and see available work in your area, download the free Steady app, here. 

The post Navigating the Current Job Market and Empowering Workers appeared first on MintLife Blog.


Prep for ‘Prost!’ Season: 9 Bavarian-Style Homes to Inspire Your Oktoberfest

If you can’t make it to Munich for Oktoberfest, you can still enjoy a good beer at one of the American events happening all throughout the country in September.

From Frankenmuth, Michigan, to Fredericksburg, Texas, you’re certain to find a spirited group of Germanophiles somewhere during the month celebrating all things Bavarian.

To get inspired for Oktoberfest, check out these nine Bavarian-style homes for sale right here in the U.S.

A taste of Germany on the central coast

For sale: $795,000

Nestled near the heart of downtown Solvang, California – a central coast town with Danish roots – this traditional Tudor gets you all the charm of a Bavarian home with all the modern American finishings you’re accustomed to, like an updated kitchen with granite countertops and hardwood floors. The home also features a bocce court, a large 3-car garage and an elevator from the garage to the second floor.

Photo from Zillow listing.

See more Solvang homes for sale.

A cozy Bavarian-style cabin

For sale: $399,000

You’ll think you’ve transported yourself to the Bavarian Alps in this tiny cabin in Leavenworth, Washington. Stunning views of the mountains await when you return from a day exploring downtown Leavenworth, which just so happens to be modeled after a traditional Bavarian village.

Photo from Zillow listing.

See more Leavenworth homes for sale.

An old-world chalet

For sale: $345,000

This Hague, New York, home was designed to imitate a Bavarian-style ski chalet – and it doesn’t disappoint. With a classic gable roof, ornamental balusters on the sweeping back porch, and floor-to-ceiling windows in the large family room, this home is the perfect place to unwind and enjoy the mountain views.

Photo from Zillow listing.

See more Hague homes for sale.

A colorful German-inspired home

For sale: $329,900

This stately Toledo, Ohio, home features hallmarks of traditional German architecture, such as half-timbering and a light-colored facade, but it stands out with a playful yellow bay window in the front. Although it has mixed European influences, such as an Italian tiled roof and some medieval England-inspired stained glass, this house makes you think you’ve suddenly found yourself in the picturesque German countryside.

Photo from Zillow listing.

See more Toledo homes for sale.

A (gingerbread) cookie-cutter home

For sale: $324,900

It’s not hard to imagine drinking out of a stein and chowing down on some sauerkraut in this adorable Irons, Michigan, cottage. Reminiscent of a traditional German gingerbread home, it features classic German half-timbering, decorative shutters and a colorfully outlined gable roof.

Photo from Zillow listing.

See more Irons homes for sale.

A Bavarian stunner in the Elka Park mountains

For sale: $429,000

A cross gable roof, a wraparound balcony trimmed with green balusters, and a Bavarian lodge-style feel inside make this Hunter, New York, home truly unique. Top it off with unbelievable mountain views from nearly every spot in the home, and you’ve got a perfect spot to celebrate future Oktoberfests.

Photo from Zillow listing.

See more Hunter homes for sale.

A perfectly German ski chalet

For sale: $258,000

After a long day at the slopes, come home to this charming Bavarian-style ski chalet in Bartlett, New Hampshire. Tucked away on a wooded lot near hiking trails, this whimsical home has plenty of space for weekend visitors and tons of quirky details, like heart cutouts on the decorative shutters.

Photo from Zillow listing.

See more Bartlett homes for sale.

A Bavarian home fit for a Grimm’s fairy tale

For sale: $2.4 million

This Saugatuck, Michigan, home looks like it belongs in the pages of a fairy tale rather than a neighborhood near Lake Michigan. Interior designer Dale Metternich once called this house a home, which features classic German half-timbering, wooden shutters, and a stately interior that any royal family would feel right at home in.

Photo from Zillow listing.

See more Saugatuck homes for sale.

An inviting Bavarian lake home

For sale: $589,900

This Fenton, Michigan, home is quiet and secluded with a location right on the lake. An A-frame roof over the front entrance, multiple storybook-like balconies, leaded windows and colorful half-timbering are just a few of the details that set this home apart.

Photo from Zillow listing.

See more Fenton homes for sale.

Top photo from Zillow listing.


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How to Reassess Your Finances After Unexpected Job Loss

Going through life you can always expect the unexpected. It’s common for life to take an immediate and unexpected turn. It could be birth, death, a move, a marriage or a change in income. In all of these cases, it’s important to evaluate your household finances and decide how to best move forward. In the case of an unexpected job loss, here are 5 ways to reassess your finances to put you on your best path forward.

Start (or update) your budget

Hopefully, you already have a budget, but if not, now is the perfect time to create a budget. The word budget has a negative connotation with many people, but it doesn’t have to. A budget is just a tool, and like all tools, can be wielded for good or for bad. Start by tracking your monthly expenses, and compare that to the amount of income that you have coming in. That income could be from any severance you received, unemployment benefits or part-time work. It’s pretty simple to set up a budget in the Mint app and look at where your money is actually going.

Cut unnecessary expenses (be brutal)

The 50/30/20 rule is a popular budgeting rule that says that 50% of your income should go to essentials (needs), 30% to wants, and 20% to savings. The closer you have been getting to following that rule, the fewer changes that you’ll need to make to your budget after an unexpected job loss. If you are in a 2-income household where one member of the household just lost his job, you may find that you can squeeze things to live on only 50% of the income.

Now is the time to look through your recurring expenses and see how you might be able to simplify your finances. Be brutal – depending on how much money you have coming in, you may need to get rid of most or all of your non-essential spending until you have a new job and new income.

Stop saving and tap your emergency fund

Saving for a rainy day is important and having an emergency fund is one of the key principles of being on sound financial footing. Well, guess what – an unexpected job loss IS the rainy day you’ve been saving for! One of the first steps in reassessing your finances after an unexpected job loss is to stop any non-essential emergency or retirement contributions. You can always pick those back up once you’re back on your feet.

You can also stop contributing to your emergency fund. Now is the time to pull FROM the emergency fund if needed. It’s normal in a situation where you have a sudden loss of income to no longer be living below your means. The best thing that you can do in that situation is to minimize your shortfall each month. Calculate how much money you’ll be losing each month that you’re without an income and determine how many months your emergency fund will last you.

Of course, if you were just hit with an unexpected job loss and don’t have an emergency fund available to help tide you over, it does no good to tell you that now. The time to prepare is BEFORE the unexpected happens. So if you’re reading this article and are in a good financial situation, make sure that you are preparing yourself for an unexpected job loss or other financial misfortune.

Know your benefits (and when they expire)

If you’re facing an unexpected job loss, you’re likely eligible for certain benefits. Depending on your employment situation, you may have received a severance package. You’re possibly also eligible for health care through your former employer or a government agency. You’ll want to make sure to claim your unemployment benefits if you’re eligible as well. Take a look through all of these benefits and find out how much they are worth and most importantly, how long they’re good for.

Look for part-time or gig work

There are only two ways to make up a monthly shortfall. Either you can cut spending or you can increase income. Cutting spending is a good first step, but there are only so many gym memberships or iced cappuccinos that you can remove before you start cutting pretty deep. Once you’ve hit that point, you’ll want to concentrate your time and effort into increasing your income.

You’ll want to spend most of your effort into getting a new job in your field of expertise. No amount of part-time work or side hustles is likely to compensate you as well as returning back to full-time employment in your field of study. But in the meantime, here are a few ways to make extra money quickly:

  • Sell extra possessions that you no longer use or need
  • Join the gig economy (Uber, Lyft, Doordash, Airbnb, etc)
  • Focus on a side hustle

Hopefully, these suggestions will help you reassess your finances after an unexpected job loss and help you survive until you can get back on your feet.

The post How to Reassess Your Finances After Unexpected Job Loss appeared first on MintLife Blog.


This Philadelphia Farmhouse Is a Historic Stunner

Take a stone farmhouse from 1810, mix it with the best furnishings you can find at flea markets in Paris, and the result is this exquisitely renovated Colonial home outside Philadelphia.

A walk-in fireplace graces the living room, while the formal dining room boasts French doors that open onto a screened porch. For a cozier ambiance, the library of this 4-bedroom, 3,800-square-foot home features a fireplace and picture-window views.

A beautifully upholstered floating wall was installed in one bedroom to allow a lake view while lounging in bed. A chandelier hangs above the bed, and behind it is a sitting room.


Owners Michele and Michael Friezo also remade the nearly 8-acre grounds, adding formal and informal gardens. They planted more than 300 types of flowers in a meadow with a fire pit that overlooks a private lake.

The pleasure of watching the sun on autumn evenings is rivaled only by watching the snow fall while sitting by a roaring fire in the barn, Michele Friezo said.

The couple also renovated the estate’s crumbling horse barn, which is a rustic version of the main home. Concerned that adding insulation would take away the barn-like appearance of the structure’s interior, they bought a second barn and installed it inside the first one.

The barn’s massive French windows face the meadow and the lake, offering front-row seats to the nesting of two bald eagles who live in a nearby grove of pine trees.

The estate sold for $2.575 million with Caryn Black of Kurfiss Sotheby’s International Realty.

Photos by Juan Vidal Photography.


  • Living Legacy: Making a Family Home in a Historic Mansion
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  • The Childhood Dream Home Turned Dream Come True
Originally published December 2016.


A Simple Trick for Avoiding Capital Gains Tax on Real Estate Investments

Aerial view of a farmInvesting in real estate can assist you in diversifying your investment portfolio by adding physical assets and providing you with a hedge against inflation. If you are a real estate investor, or if you aspire to become one, you will want to know about like-kind exchanges because they give you a chance to shift your real estate investments on a tax-deferred basis. Like-kind exchanges give you the opportunity to have a dynamic real estate portfolio that you can adjust based on the market and the economic conditions without incurring a large tax liability. Here is how they work.

If you’re looking for counsel on diversifying your portfolio or adding physical assets to your holdings consider working with a financial advisor.

Like-Kind Exchange, Definition

A like-kind exchange happens when an investor wants to sell real estate and avoid the capital gains tax that would normally be assessed. The investor can use the like-kind exchange to sell a parcel of real estate and buy another parcel as long as the parcel they buy is similar to the parcel they sell. A like-kind exchange is authorized as a Section 1031 exchange under the Internal Revenue Code (IRC). Both the like-kind exchange and like-kind property are defined under Section 1031.

Like-kind property is composed of real estate assets that are so similar in nature that they qualify for a like-kind exchange. The Internal Revenue Code defines a like-kind property as any held for investment, trade, or business purposes under Section 1031. Grade of the assets or quality of the assets is not used to determine like-kind property. Personal property cannot be used in a like-kind exchange. The gains of the transaction are not tax-exempt. They are tax-deferred.

Section 1031 of the IRS Code exempts the seller of the property from paying capital gains as long as the property is for business and investment purposes. The seller must purchase like-kind property every time they sell property in order to defer taxes for the longest time period possible.

Like-Kind Exchange, Types

There are four types of like-kind exchanges:

  • Simultaneous – The simultaneous exchange is reasonably simple. It is the simultaneous exchange of one qualifying property for another with the transaction closing that day.
  • Deferred â€“ The deferred exchange may be the most common. The seller sells the property and has 45 days to identify the property that will be exchanged for it. Then, the seller has 180 days to complete the sale. An exchange facility is often used to facilitate the deferred exchange to be sure it doesn’t become a taxable event.
  • Reverse â€“ A reverse exchange occurs when the property that will be the replacement property is acquired and the seller has 180 days to sell the original property.
  • Improvement – An improvement exchange requires that the property that is acquired be placed with an intermediary for 180 days while construction or improvement occurs.

Like-Kind Exchange, Conditions & Rules

Real estate concept graphicSeveral conditions must be met for a property to qualify for an exchange. The property must be used in a trade, business or investment. Personal property does not qualify. The property must be like-kind to the property it is replacing. Usually, real estate is like-kind to other real estates as long as neither parcel is for personal use. Using an exchange facility for the transaction helps ensure that a mistake is not made regarding the personal property issue.

There are also a set of rules that must be followed when doing an like-kind exchange.

  • When the replacement property is finally sold, that’s when the tax on the capital gain is paid.
  • Only business or investment property can be exchanged as of the enactment of the Tax and Jobs Act of 2017.
  • The exchange must be identical in nature.
  • The replacement property must be of the same or higher in value.
  • The owner of the original and replacement property must be the same person.
  • The property must be acquired in 45 days and the transaction closed in 180 days.

The Bottom Line

Model houseReal estate investors, dealing in frequent real estate transactions, should take advantage of like-kind exchanges when they can. Since real estate is usually like-kind for other real estates, the rules may not be as hard to follow as it appears. The most difficult issue may be the relatively short time frames to complete the acquisition and closing the deal.

Tips on Investing

  • Investors contemplating a like-kind exchange should carefully think through the pros and cons. That’s where a financial advisor can be invaluable. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • If you’ve decided to craft your investment portfolio alone, you should make sure you’re prepared. SmartAsset has you covered with a number of different online investment resources to help you figure things out. Check out our free asset allocation calculator today.

Photo credit: ©, ©, ©

The post A Simple Trick for Avoiding Capital Gains Tax on Real Estate Investments appeared first on SmartAsset Blog.


Will Baby Boomers Dying Cause A Housing Decline?

I keep hearing from people that no one is talking about how all of the baby boomers are going to die soon and that will cause a housing crash. This idea may have been started by Robert Kiyosaki who wrote a book in 2002 about baby boomers creating a stock market crash in 2016. Obviously, … Read more


How to Increase Your Earning Potential

Every year presents new lessons we should incorporate on this life journey, and this one, in particular, is no exception. In a world that is ever-changing one thing that has to remain the same is our ability to pivot when necessary. Whenever life challenges arise, we often make changes and shift out of force rather than free choice. While this logic can be applied to every aspect of our lives it’s an especially crucial concept as it relates to our finances. There’s no need to wait until your employer needs to decrease headcount or reduce work hours to jumpstart your rediscovery process. Make the decision today that no matter what happens within the economy, you are making the strides to guarantee your earning power doesn’t rest in the hands of someone else.

See Average U.S. Salaries

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Set yourself apart and strengthen your skills

Often times, the number one thing you can do before executing plans of any kind is focus on strengthening your skills. Are others able to depend on you?  If you desire to run your own business or be a high-performing, contributing employee – are you reliable? Being able to breakdown complex situations and produce viable solutions, paying special attention to detail, and asking the right questions at the right time are skills that many often have, but have yet to master. Focusing on any skills that may come naturally to you while achieving mastery, in the long run, will absolutely contribute to the opportunities you are afforded over other candidates. It’s not about competition, because what’s for you won’t pass you by. It’s about actively showcasing you are indeed the best candidate with the physical results to prove it.

Seek out new opportunities and expand your skillset

People believe there are only a few ways to bring in additional income – one being a side hustle. This isn’t necessarily the case. Seeking out opportunities within your current or new place of employment can be just what you need to make substantial strides in increasing your earnings as well as visibility. Make yourself familiar with the Human Resources policies for promotions and role transitions. Look into if there are side projects you can add to your workload that can increase your skillset while being introduced to a new audience of people; consider exploring that. Be sure to document the pros and cons of the newly added responsibilities while making sure it aligns with where you ultimately want to be. Don’t shy away from having a conversation with your manager and making your goals known.

Ask for more (and quantify it)

Employers have mid-year and end of year reviews to go over performance goals and ensure the work you’ve done over time aligns with the responsibilities of the team as well as the company. While this is protocol, as an employee you don’t have to wait until this designated time to discuss career goals. Not only does this conversation create awareness between you and your manager – it allows them to understand your desire for more. I’m sure we’ve all had less than desirable bosses, coworkers, and teams. We’ve also been in situations where we know that the work required of us was so much more than the actual amount of money we were taking home. To avoid the unfortunate cycle of being overworked and underpaid that many fall into, have an open and candid conversation with management. Be sure to quantify every task and tie a metric to it if possible. This helps to build your professional story while also making sure your resume stays current for all new opportunities as they arise.

Start a side hustle

When your friends, family, or peers often ask you to complete something and you enjoy doing it; what is that ‘thing’? What talents do you innately have that seem as if it doesn’t require a huge amount of effort? The answers to these questions should birth the idea of your new side hustle. As daunting as it may sound, take the time to loosely create a plan. Remember, this is scalable! Go at the pace that is most comfortable for you and can transition well into your lifestyle. Solicit the help of family and friends while using your larger network to advertise your talent. Social media and word of mouth can go a very long way – use all outlets to promote yourself and your services.

Never underestimate the power of networking

We all have a comfort zone and typically stay within those walls on a regular basis unless probed. However, do you consider the opportunities that could be available to you by adding several new people to your network? Utilize employee resource groups at your place of employment, various professional networks in your local cities, and other organizations that have a virtual platform. Do a quick Google search based on your preferred industry and start the journey of expanding your network. There’s a very familiar phrase we’ve all heard at some point, “it’s not what you know, it’s who you know.” LinkedIn is a great social media platform to engage with professionals all over the world on various subject matters and topics. Don’t be afraid to put yourself out there and make the connections that could lead you to new opportunities.

Become a lifelong learner

Make a commitment to yourself that no matter what happens, you will always seek knowledge, no matter the method. Explore personal and professional learning opportunities. This may be pursuing an advanced degree to expand opportunities. For others, it can be obtaining a certification within your desired field to land a better position – resulting in a salary increase. If either of those doesn’t sound appealing or fit within your current life circumstances, you can always attend conferences, listen to webinars, podcasts, and so many other cost-effective (or free) learning channels to keep your skills in top shape. This could be listening to an audible book while driving in your car or reading a new article every day related to your industry before getting your day started – learning is limitless!

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9 Homes With Dreamy Spots for April Showers

A good spring shower leaves the earth feeling refreshed and renewed – which is not unlike a good shower in your own home. A well-designed and polished bathroom can invigorate you in the morning or relax you before bed.

These 10 bathrooms in for-sale homes across the country give us that feeling of rejuvenation – and make us just the tiniest bit envious.

Spa-like in the city

For sale: $1.3 million

This Tudor revival in Washington, D.C., is equal parts modern and traditional – and its sleek yet comfortable bathroom is exactly what you’d need after a long day in this busy political city. This bathroom has all the spa features of your dreams, including a soaking tub with ample space for bath supplies, a double vanity with tons of storage underneath and a neutral, calming color palette.

Photo from Zillow listing.

See more homes in Washington, D.C.

A stylish soak

For sale: $1.5 million

This stunning home in De Soto, Wisconsin, is an award-winning architectural structure, but the bathroom is by far the dreamiest of all its spaces. The light hardwoods and paneling contrast beautifully with the slate-gray tub and vanity countertop, and the lighting gives just enough ambience without being too overpowering – perfect for taking a midafternoon soak in the tub on a Saturday.

Photo from Zillow listing.

See more homes in De Soto.

Tan-quility in Texas

For sale: $1.4 million

This bathroom in Austin, Texas, blends neutral tones and contemporary glass to instantly relax you – and add a huge dash of style. A deep soaking tub connects seamlessly to the oversized glass-encased shower, which has a large bench and built-in shelf for bath products.

Photo from Zillow listing.

See more homes for sale in Austin.

Polished and pretty in porcelain

For sale: $595,000

It’s not hard to imagine yourself spending quality time in this light-filled Tulsa, Oklahoma, bathroom. A free-standing curved bathtub sits beautifully right by a picture window, highlighted by a modern light fixture. And right next to it is a glass-encased shower for early mornings when you don’t have time to leisurely take a dip.

Photo from Zillow listing.

See more homes for sale in Tulsa.

A bathing beauty with a view

For sale: $26.5 million

It’s hard to find a favorite thing about this luxury bathroom in Carpinteria, California. Is it the floor-to-ceiling marbled tile or the mountain views as you shower? Whether you love the ceiling-mounted showerhead or the giant tub with cozy built-ins for all your products, this bathroom is an inspiration.

Photo from Zillow listing.

See more homes in Carpinteria.

A grown-up shower to shout about

For sale: $2.9 million

Let us count the ways we love this bathroom in Bellevue, Washington. For one, we can’t get enough of the contrast between the black hexagon tile on the floor and the large white subway tile in the shower. We also love the vessel sink that sits atop an oversize purple-gray vanity, which adds an unexpected pop of color.

Photo from Zillow listing.

See more homes in Bellevue.

A bubble-filled bathroom

For sale: $1.9 million

The light fixtures in this East Hampton, New York, bathroom are reminiscent of bubbles – appropriate for a room with a free-standing soaking tub. Another set of bubble lights sits above the wall-mounted modern sink with plenty of storage underneath.

Photo from Zillow listing.

See more homes for sale in East Hampton.

Large and luxurious in Dallas

For sale: $2.8 million

Everything is bigger in Texas, and this Dallas, Texas, bathroom is no exception. A picture-perfect free-standing tub is framed by two playful light fixtures, as well as an oversized window that lets in a lot of light but still manages to give you privacy, thanks to the trees right outside.

Photo from Zillow listing.

See more homes for sale in Dallas.

Simple yet stately

For sale: $1.9 million

Large marbled tile and a crystal-clear glass shower door make for a beautiful bathroom in Boston, Massachusetts. It’s not especially hard to imagine taking a nice, relaxing shower with that ceiling-mounted showerhead.

Photo from Zillow listing.

See more homes for sale in Boston.


  • 10 Ways to Make a Small Bathroom Look Bigger
  • What NOT to Do When Remodeling Bathrooms
  • 5 Common Bathroom Problems and How to Fix Them


How to Create Generational Wealth

It’s highly likely that you’ve heard about the term “generational wealth,” but do you know its meaning and what it actually takes to create it?

By definition, generational wealth is assets passed down by one generation of a family to another. The assets can be, but not limited to, real estate properties, stocks including mutual funds, bonds, and businesses.

Sometimes, these assets can pass down to your family after you die in the form of inheritance. Other times, the next generation can receive these assets while you are still alive. That means a generation does not have to die off to transfer wealth.

To create generational wealth, however, you need to think of having hard assets. A 7-figure salary alone does not equate wealth. If you stop working , the high paycheck ceases to exist.

That’s not all.

There are people who make a lot of money but spend it all and have nothing left over at the end of the month.

So, in order to build generational wealth that you can pass on, you need invest your money in those vehicles that have the potential to make you very wealthy.

You can start with short term investments to begin with, but the money is in long term investments.

Why building generational wealth is important?

Building generational wealth now can help fund future education for your children and ensure that they have a comfortable life when you’re not around.

Even when you’re living, it can give them an edge. For example, if your child is buying a home, you can transfer wealth as gifts towards a down payment on the house. So, your children can have a good financial advantage and are more likely to accumulate wealth on their own.

So, how to build generational wealth?

Here’s how to do it:

1. Work with a financial advisor

If you’re really serious about building generational wealth, you should consider hiring a financial advisor.

A financial advisor advise their clients on how to save, invest, grow and manage their money. They help them set financial goals and create a plan to achieve them.

However, hiring a financial advisors cost money. But if you’re making more than $50,000 a year, you should be able to afford one. Financial advisor costs vary depending on the advisor and the kind of advice you’re seeking.

But usually, a fixed fee per hour can be anywhere between $100 to $300. While that can be expensive, it will be worth it in the long run.

Click here to find a financial advisor in your area.

2. Start a business

One of the best ways to build long term wealth to pass down to your children is through your business. According to the census bureau, 90% of all businesses in North America are family businesses. And these families tend to pass down their businesses to their children.

Or, if you look at the Forbes list of billionaires in the world, you have to say that a lot of them own their businesses.

3. Invest in Real Estate

Real estate investing is an excellent source of generational wealth. More than half of the people in the Forbes made their money in real estate. Even those who haven’t built their wealth out of property generally invest their money in real estate.

So, if most wealthy people in this country or the world are wealthy because of real estate or invest some of their money, it means that real estate is a great source of generational wealth.

So, how do you get started with real estate investing?

Investing in real estate in order to start your journey in creating generational wealth does not require a lot of money to begin with. In other words, you don’t have to be a millionaire to start.

Contrary to what most people think, an ordinary person can start with very little money. That is because the power of leverage is on your side.

That means that banks or mortgage lenders can lend you up 95% of a home purchase price. So, if you have a steady job and a good credit score, you can afford to purchase investment properties.

Most wealthy real estate investors build their long term wealth through saving money and then gradually buying properties over the years. You can start with single family homes, condos, small apartments including duplexes, triplexes and multi-family residential properties.

If you really want to create generational wealth, you should seriously think about investing in real estate.

4. Invest in the stock market.

Investing in the stock market is one of the best ways for families to build generational wealth. Just like real estate, investing in the stock market should be a long-term strategy.

The idea of picking individual stocks on your own to invest can be very intimidating, especially if you’re a beginner. If you’re just starting out and don’t feel confident in your investing knowledge, then you should learn how the market works.

Or you can start with mutual funds or index funds. A mutual fund is an investment vehicle in which investors, like you and me, pool their money together. They use the money to invest in securities such as stocks and bonds. An index fund or exchange traded fund is a type of mutual fund which is designed to match the components of a market index.

There are many benefits to invest in these funds, because they are cost efficient. They offer diversification to your portfolio. They also have low minimum investment requirements.

Mutual funds, such as the Vanguard mutual funds, are managed by an investment company. You just choose your favorite mutual fund and the managers will take care of the rest. You make money from stocks or mutual funds through capital appreciation (i.e., the share increases in value) and dividends.

In terms of generational wealth, you need to reinvests those dividends and focus on those stocks that have the potential to increase in value.

Over the long term, you should be able to make a yearly return of at least 8 to 10 percent investing in mutual or index funds.

How do generational wealth get passed down?

Now that you have an idea of how to build generational wealth, then the next question is how to transfer it to your children. Families can transfer generational wealth after death and during life.

After death

When you transfer generational wealth after death, it takes the form of inheritance. Inheritance is basically assets you receive from your family after they die. They can be cash, stocks, bonds, mutual funds, real estate, gold, automobiles, etc. Those who receive the inheritance are called beneficiaries or heirs, and the inheritance may be subject to tax depending on your states.

The assets to be divided among beneficiaries are written in a will. So, if you’re serious about creating generational wealth and want to pass money to your next generation, you must have a will. Consult an estate lawyer to draft one.

If there’s no will, the probate court will assign an administrator of the estate to divide the assets according to the laws of your state.

During life

Generational wealth does not have to be transferred after you die. Families can transfer their wealth to their heirs while they are alive in three ways:

1) educational expenses. A good example is when a family pays for the next generation college’s education.

2) gifts. Families can transfer wealth by contributing to their children’s a down payment on a house.

3) medical expenses. Families can transfer wealth by paying medical expenses for their children as well.

In summary

Generational wealth is important because it can give your inheritance or heirs an edge to accumulate wealth on their own. The best place to start in your journey to create generational wealth is to work with a financial advisor and then set goals to start working toward. Many wealth families create wealth by starting a business. But most, even if they have their own businesses, invest in the stock market or real estate. The reason why is because these investments are proven wealth building vehicles. But remember, to create wealth to pass on to the next generation of family, you have to have a long term perspective.

Speak with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning to retire at 50, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

The post How to Create Generational Wealth appeared first on GrowthRapidly.