Options
Real estate
Ways to invest
- Buy a house, live in it and sell
it later at a profit.
- Buy income property (such as
an apartment house or a commercial
building) and rent it.
- Buy land and hold it until it
rises in value.
Advantages
- Excellent protection against
inflation.
Disadvantages
- Can be difficult to convert into
cash.
- A specialized type of investment
requiring study and knowledge of
business.
Capital gains
- Capital gains are profits from
the sale of a capital asset such
as stocks, bonds, or real estate.
These profits are tax-deferred;
you do not have to pay the tax
on these profits until the asset
is sold. Long-term capital gains
occur on investments held more
than 12 months. Short-term capital
gains occur on investments held
less than 12 months.
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