Ameriprise Financial Tips

By Edward Pontarelli Jr.

If you are among the many Americans who own a second home that you occasionally use as a vacation getaway, you may be leaving an important source of income untapped. It’s worth taking the time to understand the value of renting the property. Before you make any decision to become a “vacation landlord,” remember that some decisions are worth careful consideration.

Do-it-yourself or hire a team

First, consider how much of the burden you want to take on for yourself. Renting a property may create an income opportunity, but it requires work. If you are going to do it yourself, you’ll need to advertise the property, follow-up with potential renters, collect the rent, establish expectations for your renters and make sure the property is in good shape. You may want to hire someone for housekeeping services, yard care and maintenance work. But that comes at a cost and it still leaves work for you.

e alternative is to use a full-service management company that will handle many of the tasks related to booking and managing the property. Taking this route may cost you as much as 20 percent or more of the rental income generated by the property. You have to determine if that investment is worthwhile for you.

Tax considerations to keep in mind

Another factor to consider is how much you plan to use your vacation home. ere are tax rami cations based on the amount of time you live in the home versus the time you rent it out.

When you rent your home for 14 days or less in a year, rental expenses are not deductible, and the rental income is excluded from your gross income.

If the property is rented for more than 14 days during the year, rental expenses are generally deductible. However, if you use the home as a personal residence for more than the greater of 14 days or 10 percent of the days it is rented during the year, then deductions are limited to gross rental income. Certain other rules may reduce or eliminate your ability to claim rental deductions.

Keep in mind that state and local taxes may apply no matter what decision you make regarding the period your home is rented out. It is best to consult your tax advisor to understand all of the potential tax rami cations of your rental strategy.

Be prepared to share

When you rent your vacation home, the space is no longer just your own. Sharing your property with others will undoubtedly lead to additional wear-andtear on your home. Make sure you limit the number of guests at any one time to an amount the home can reasonably accommodate. Spell out policies on smoking, pets and even a minimum age. e clearer your rules and expectations are for the renters, the less likely you are to encounter unpleasant surprises a er renters have le the property. Do what you can to make the experience a positive one for renters to build repeat business and e ective word-of-mouth marketing.

When you choose to rent your vacation home, you are entering the hospitality business. Be sure you are prepared to meet the expectations of people who will be paying to stay in your home rather than in a hotel or other establishment. Careful thought before renting will also ensure you are prepared for how the changes will a ect how and when you can use your vacation home.

Edward Pontarelli Jr, APMA®, CRPC® is a Financial Advisor and Managing Director with BeaconPoint Wealth Advisors a financial advisory practice of Ameriprise Financial Services, Inc. in Providence, RI. He specializes in fee based financial planning and asset management strategies and has been in practice for 20 years. Please contact him at https://www. ameripriseadvisors.com/team/beacon-point-wealth-advisors or (401)824-2532, 1 Citizens Plaza Ste 610 Providence, RI 02903.

Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.

Ameriprise Financial Services, LLC. Member FINRA and SIPC.

Financial Wellness Programs Benefit Both Employees and Employer

By: Carrie McPherson

In a recent survey, nearly 70 percent of employers say they recognize the value in o ering nancial wellness programs to make them more competitive in hiring and retaining employees.3 If you haven’t explored a nancial wellness program for your employees, you may want to consider how adding one could bene t your organization.

Doing so may provide:

• e potential to enhance workplace satisfaction as your employees gain greater con dence about their nancial direction in life.

• Improved productivity among employees who are no longer overwhelmed with concerns about their nancial situation

• Better retention of employees, who nd enhanced grati cation from work that they are con dent is ful lling their nancial needs

• e potential that employees who carry less stress about their nancial well-being will enjoy greater health, resulting in fewer medical issues and reduced health care costs.

Financial wellness programs should be looked at as an attractive add-on to your company’s total compensation plan.

Plans can be structured to suit the needs of your business. Reach out to your nancial advisor. Ameriprise Financial and other rms have programs that can be designed to bene t your employees.

If you’re a small business owner, chances are that at least some of your workforce is stressed and distracted by worries Looking for the Lowest Mortgage Rates Out There? about money, making them more frazzled and less productive on the job. Studies show that 73% of Americans say their nances are the number one cause of stress in their life.1 And Looking for Alternative and Aggressive Mortgage Programs? for those who are employed, nearly half say that personal nancial issues create distractions at work.2 As a Wholesale Mortgage Brokerage Firm, ese statistics could paint a worrisome picture of the menwe transfer our rate discount to you!!tal health of your employee population. ey could also impact your company’s bottom line. Each year, employers lose an average of $1,900 per employee in lost productivity due to nancial stress. Our Premiere Mortgage Programs include:2 is helps explain why more and more 1) FHA- National Grant Program/No MoneyDown employers are making nancial wellness programs available as a workplace bene t. (NO Credit-OK, DACA buyers- OK, Financial wellness is mutually bene cial for both employees 2) USDA- No Money down, specific areaonlyand employers. Such programs can improve your company’s scal health while boosting your employees’ productivity 3) Conventional- First Time Home Buyers’ 3% down and engagement. Let’s take a closer look at employee nancial wellness programs and the bene ts they can bring to 4) VA- No Money down, Credit Score down to 550 both employees and employer. Our Sub-Prime/Non-Conforming Programs:What is an employee financial wellness program? Employee nancial wellness programs are programs that Select 12 Month Bank Statement Program, With No Income Verification!! 1 2021 CreditWise National Get Smart About Credit survey. 2 2020 PWC Employee Financial Wellness survey. 3 MassMutual Financial Wellness Trend Study, Feb. 2020. help employees better manage their nances and reduce nancial worries. As such, they contribute to a better overall nancial wellbeing for employees. When it comes to employee nancial wellness, employers can implement a variety of di erent programs and o erings. Some focus solely on nancial education, while others layer employer matching, nancial assistance, and other opportunities into the equation. Educational-focused programs, for example, may provide employees with nancial workshops about homeownership, retirement savings, budgeting, or debt management. Employer matching programs may involve matching a certain percentage of retirement contributions employees make to their 401(k) or to student loans. And other types of nancial assistance could include tuition assistance, medical bill negotiation, or nancial planning subsidies. e key to a successful nancial wellness program is rst determining the speci c needs of your employees so that you can more accurately meet those needs. Di erent workforces will have di erent nancial situations and necessitate di erent programs.

 No Income Verification  Last 12 MonthsBankStatements  Minimum10% Down Payment  Interest-Only options

Carrie A. McPherson, CRPS®, CDFA®, ChSNC® is a Financial Advisor and Certified Divorce Financial Analyst with BeaconPoint Wealth Advisors, a financial advisory practice of Ameriprise Financial Services, Inc. in Providence, RI. She specializes in fee based financial planning and asset maInvestment Property: 15% Down Paymentnagement strategies and has been in practice for 13 years. Please contact her at www.ameripriseadvisors.com/team/ Rents Support the Mortgage Payment, No Income Verification!! beacon-point-wealth-advisors or (401) 824-2557, 1 Citizens Plaza Ste 610 Providence, RI 02903 Ameriprise Financial, Inc. and its affiliates do not offer tax or Select Jumbo Programlegal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.  10% Down Payment Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.  No PMIrequired  High Debt Ratio allowed Ameriprise Financial Services, LLC. Member FINRA and SIPC.  Max Loan amount $3 Million© 2022 Ameriprise Financial, Inc. All rights reserved.