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Can you make money by selling your house? Do 4 things quickly to maintain profits

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Can you make money by selling your house? Do 4 things quickly to maintain profits

If a home seller is lucky enough, they sometimes become instant millionaires after selling their home, but GoBankingRates, a financial website, reports that experts recommend taking a minute to celebrate when that happens. , and then immediately plan what to do with the money. , newly acquired property; Even a seven-figure sum can be lost if proper measures are not taken. Here are four things experts say you should do quickly:

Erica Kullberg, an attorney and personal finance expert, explains that when making a fortune by selling a home, the first thing to do is to understand the tax implications; You should determine as soon as possible whether you will have to pay capital gains once you need to file a tax return. If you are unsure about taxes, please consult a tax advisor.

Kuhlberg said the last thing they should do is spend moneyinvestOr spending and then not being able to pay taxes. If you make seven figures by selling your home, you may have to pay a large amount of tax.

Melissa Murphy Pavone, investment director at Oppenheimer & Company, believes that when clients sell their homes and have a large amount of liquidity coming in, the first thing she recommends is a financial plan of their personal finances. To examine.

Pavoni said she recommends opening a high-yield account at a local bank.SavingsAccounts (HYSA), these accounts usually have both flexibility and liquidity, making it easy to deposit and withdraw funds while getting better returns.

Pavone says another important step in selling a home is to enlist the help of a professional team to make the complex process go smoothly. He explained that you can have an in-depth discussion with a financial planner (CFP) to get the guidance that best suits the individual; You also need an accountant. A professional team can not only deal with financial considerations and tax implications, but also provide guidance for the client’s financial future. Good plan.

Savings expert Ben McLaughlin says now is a good time to start saving if you don’t already have a better option or emergency fund.

He said that it is a wise decision to set aside six months of living expenses in HYSA, so that the newly earned cash can be easily accessed while earning interest. He stressed that it is important that the money should not be allowed to accumulatecheckAccount is inactive.

He said if you don’t need the money immediately, you might consider locking in high-interest investment products, such as high-yield fixed deposits (CDs), which earn a fixed rate of return over a period of time. Guarantee to do.

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