Rich Habits Podcast
Q&A: Delaware Statutory Trusts, Stop-Loss Orders, & VOOG
Dec 26, 2024
Delaware Statutory Trusts are examined for their potential as passive income generators, revealing both benefits and downsides like illiquidity. The discussion also weighs renting against buying for medical students, advocating for the former during transitional phases. Stop loss orders are highlighted as essential tools for risk management while promoting a long-term outlook on investments. Additionally, various investment strategies are explored, emphasizing the importance of market comprehension and the advantages of dollar-cost averaging.
36:25
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Quick takeaways
- Delaware Statutory Trusts offer a way to invest in real estate for 1031 exchanges, but come with high fees and illiquidity risks.
- Renting is generally more favorable than buying for medical students due to market conditions and financial flexibility during short stays.
Deep dives
Exploring Delaware Statutory Trusts (DSTs)
Delaware Statutory Trusts (DSTs) are introduced as a potential investment strategy in real estate, particularly for those considering a 1031 exchange to defer capital gains taxes. A DST is a legal entity designed to hold real estate and provides a way for investors to pool their resources. However, investing in a DST comes with the caveat of illiquidity and complex fee structures, which can reach up to 17% when combining various costs. The general consensus is that while they may serve specific purposes, investors could obtain better flexibility and lower fees through traditional investment methods.
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