How to Invest in Commercial Real Estate - US News Money
The appeal of investing in this property type is multifold. Investors can generate higher investment returns and take advantage of tax benefits ...
capital gains tax
Another reward that comes with commercial real estate investing is through the 1031 exchange, a tax instrument that allows capital gains to be deferred. When you sell an investment, you usually have to pay <anchor>capital gains tax</anchor>, but a 1031 exchange allows real estate investors to hold off on capital gains tax when selling a property to provide more capital when buying another investment property.
Understanding Capital Gains Tax on a Real Estate Investment Property
Understanding Capital Gains Tax on a Real Estate Investment Property

[![U.S. News and World Report Logo](/static-atlas/assets/img/usn-logo-large.svg)](https://www.usnews.com)[Skip to content](#skip-to-content)

[Money](https://money.usnews.com/)

- [Credit Cards](https://money.usnews.com/credit-cards)


- Best Of

  - [Best Credit Cards](https://money.usnews.com/credit-cards/best-credit-cards)
  - [Best Balance Transfer Cards](https://money.usnews.com/credit-cards/balance-transfer)
  - [Best Travel Cards](https://money.usnews.com/credit-cards/travel)
  - [Best Cash Back Cards](https://money.usnews.com/credit-cards/cash-back)
  - [Best Student Cards](https://money.usnews.com/credit-cards/student)
  - [See All Best Of Pages](https://money.usnews.com/credit-cards/categories)
- Card Reviews

  - [American Express](https://money.usnews.com/credit-cards/american-express)
  - [Capital One](https://money.usnews.com/credit-cards/capital-one)
  - [Chase](https://money.usnews.com/credit-cards/chase)
  - [Citi](https://money.usnews.com/credit-cards/citi)
  - [Discover](https://money.usnews.com/credit-cards/discover)
  - [See All Card Reviews](https://money.usnews.com/credit-cards/cards)
- Tools & Advice

  - [Compare Tool](https://money.usnews.com/credit-cards/compare-tool)
  - [Advice](https://money.usnews.com/credit-cards/articles)

- [Mortgages](https://money.usnews.com/loans/mortgages)


- Rates

  - [Todays Mortgage Rates](https://money.usnews.com/loans/rates/mortgages/mortgage-rates)
  - [Mortgage Refinance Rates](https://money.usnews.com/loans/rates/mortgages/mortgage-refinance)
  - [30-Year Mortgage Rates](https://money.usnews.com/loans/rates/mortgages/30-year-mortgage)
  - [15 Year Mortgage Rates](https://money.usnews.com/loans/rates/mortgages/15-year-mortgage)
  - [Mortgage Rates Forecast](https://money.usnews.com/loans/mortgages/mortgage-rate-forecast)
  - [See All Rates](https://money.usnews.com/loans/rates)
- Best Of

  - [Best Mortgage Lender](https://money.usnews.com/loans/mortgages/best-mortgage-lenders)
  - [Best Refinance Lenders](https://money.usnews.com/loans/mortgages/mortgage-refinance-lenders)
  - [By State](https://money.usnews.com/loans/mortgages/state)
  - [See All Best Of Pages](https://money.usnews.com/loans/mortgages/categories)
- Lender Reviews

  - [New American Funding](https://money.usnews.com/loans/mortgages/reviews/newamericanfunding-mortgage)
  - [NBKC Bank](https://money.usnews.com/loans/mortgages/reviews/nbkcbank-mortgage)
  - [Rocket Mortgage](https://money.usnews.com/loans/mortgages/reviews/rocket-mortgage)
  - [See All Lender Reviews](https://money.usnews.com/loans/mortgages/reviews)
- Tools & Advice

  - [Mortgage Calculator](https://money.usnews.com/loans/mortgages/mortgage-calculator)
  - [Refinance Calculator](https://money.usnews.com/loans/mortgages/mortgage-refinance-calculator)
  - [Advice](https://money.usnews.com/loans/mortgages/articles)

- [Personal Loans](https://money.usnews.com/loans/personal-loans)


- Best Of

  - [Best Personal Loan Rates](https://money.usnews.com/loans/personal-loans/best-personal-loans)
  - [Best Bad Credit Personal Loans](https://money.usnews.com/loans/personal-loans/bad-credit)
  - [Best Debt Consolidation Loans](https://money.usnews.com/loans/personal-loans/debt-consolidation)
  - [Best Medical Loans](https://money.usnews.com/loans/personal-loans/medical-loans)
  - [Best Low Interest Personal Loans](https://money.usnews.com/loans/personal-loans/low-interest-personal-loans)
  - [See All Best Of Pages](https://money.usnews.com/loans/personal-loans/categories)
- Lender Reviews

  - [LightStream](https://money.usnews.com/loans/personal-loans/reviews/lightstream-personal)
  - [SoFi](https://money.usnews.com/loans/personal-loans/reviews/sofi-personal)
  - [BHG](https://money.usnews.com/loans/personal-loans/reviews/bhg-personal)
  - [See All Lender Reviews](https://money.usnews.com/loans/personal-loans/reviews)
- Tools & Advice

  - [Loan Calculator](https://money.usnews.com/loans/loan-calculator)
  - [Advice](https://money.usnews.com/loans/personal-loans/articles)

- [Student Loans](https://money.usnews.com/loans/student-loans)


- Best Of

  - [Best Private Student Loans](https://money.usnews.com/loans/student-loans/best-private-student-loans)
  - [Best Student Loan Refinance](https://money.usnews.com/loans/student-loans/student-loans-consolidation-refinancing)
  - [Best Student Loans No Cosigner](https://money.usnews.com/loans/student-loans/student-loans-without-co-signer)
  - [Best Parent Student Loans: Parent PLUS and Private](https://money.usnews.com/loans/student-loans/parent-student-loans)
  - [See All Best Of Pages](https://money.usnews.com/loans/student-loans/categories)
- Lender Reviews

  - [Sallie Mae](https://money.usnews.com/loans/student-loans/reviews/salliemae-student)
  - [Earnest](https://money.usnews.com/loans/student-loans/reviews/earnest-student)
  - [College Ave](https://money.usnews.com/loans/student-loans/reviews/collegeavestudentloans)
  - [See All Lender Reviews](https://money.usnews.com/loans/student-loans/reviews)
- Tools & Advice

  - [Advice](https://money.usnews.com/loans/student-loans/articles)
  - [Student Loan Forgiveness](https://money.usnews.com/loans/student-loans/student-loan-forgiveness)

- [Banking](https://www.usnews.com/banking)


- Best Of

  - [Best Savings Accounts](https://www.usnews.com/banking/savings-accounts)
  - [Best Checking Accounts](https://www.usnews.com/banking/checking-accounts)
  - [Best Money Market Accounts](https://www.usnews.com/banking/money-market-accounts)
  - [Best CD Rates](https://www.usnews.com/banking/cd-rates)
  - [Best Credit Unions](https://www.usnews.com/banking/credit-unions)
  - [Best Online Banks](https://www.usnews.com/banking/online-banks)
  - [Best High-Yield Savings Accounts](https://www.usnews.com/banking/high-yield-savings-accounts)
  - [See All Best Of Pages](https://www.usnews.com/banking/categories)
- Banking Reviews

  - [CIT](https://www.usnews.com/banking/reviews/cit-bank)
  - [UFB](https://www.usnews.com/banking/reviews/ufb-direct)
  - [SoFi](https://www.usnews.com/banking/reviews/sofi-bank)
  - [See All Banking Reviews](https://www.usnews.com/banking/reviews)
- Tools & Advice

  - [Savings Calculator](https://www.usnews.com/banking/calculators/savings-calculator)
  - [Advice](https://www.usnews.com/banking/articles)

- [Investing](https://money.usnews.com/investing)


- Best Of

  - [Best ETFs](https://money.usnews.com/funds/etfs)
  - [Best Stocks](https://money.usnews.com/investing/stocks)
  - [Best Mutual Funds](https://money.usnews.com/funds/mutual-funds)
  - [Best Brokers](https://money.usnews.com/investing/best-brokers)
  - [Best Brokers for Beginners](https://money.usnews.com/investing/best-brokers-beginners)
  - [See All Best Of Pages](https://money.usnews.com/investing/categories)
- Broker Reviews

  - [Interactive Brokers](https://money.usnews.com/investing/best-brokers/interactive-brokers)
  - [Sofi Invest](https://money.usnews.com/investing/best-brokers/sofi-invest)
  - [Vanguard](https://money.usnews.com/investing/best-brokers/vanguard)
  - [See All Broker Reviews](https://money.usnews.com/investing/best-brokers/reviews)
- Tools & Advice

  - [Stock Market News](https://money.usnews.com/investing/stock-market-news)
  - [Search Financial Advisors](https://money.usnews.com/financial-advisors/search)
  - [Cryptocurrency](https://money.usnews.com/investing/cryptocurrency)
  - [Dividends](https://money.usnews.com/investing/dividends)
  - [Portfolio Management](https://money.usnews.com/investing/portfolio-management)
  - [Investing 101](https://money.usnews.com/investing/investing-101)
  - [Buy and Hold Strategy](https://money.usnews.com/investing/buy-and-hold-strategy)
  - [Real Estate Investments](https://money.usnews.com/investing/real-estate-investments)
  - [Funds](https://money.usnews.com/investing/funds)
  - [Bonds](https://money.usnews.com/investing/bonds)
  - [Glossary](https://money.usnews.com/investing/term)

- [Financial Advisors](https://money.usnews.com/financial-advisors)


- [Find a Financial Advisor or Firm](https://money.usnews.com/financial-advisors/search)
- [Advice](https://money.usnews.com/financial-advisors)
- [Advisor's Corner](https://money.usnews.com/investing/advisors-corner)

- [Retirement](https://money.usnews.com/money/retirement)


- Tools & Advice

  - [401(k)s](https://money.usnews.com/money/retirement/401ks)
  - [IRAs](https://money.usnews.com/money/retirement/iras)
  - [Social Security](https://money.usnews.com/money/retirement/social-security)
  - [Medicare](https://money.usnews.com/money/retirement/medicare)
  - [Baby Boomers](https://money.usnews.com/money/retirement/baby-boomers)
  - [Aging](https://money.usnews.com/money/retirement/aging)
  - [Best Places to Retire](https://realestate.usnews.com/places/rankings/best-places-to-retire)
  - [Retirement Calculator](https://money.usnews.com/money/retirement/calculator)

- Other


- [Financial Advisors](https://money.usnews.com/financial-advisors)
- [Personal Finance](https://money.usnews.com/money/personal-finance)
- [Auto Loans](https://money.usnews.com/loans/auto-loans)
- [Small Business Loans](https://money.usnews.com/loans/small-business-loans)
- [Installment Loans](https://money.usnews.com/loans/installment-loans)
- [Online Loans](https://money.usnews.com/loans/online-loans)
- [Debt Settlement](https://money.usnews.com/loans/debt-settlement-companies)
- [Real Estate](https://realestate.usnews.com/)
- [Careers](https://money.usnews.com/careers)
- Law

[Sign In](/emailprefs/login "Sign In") [Sign In](/emailprefs/login "Sign In")

1. Capital Gains Tax in Real Estate Investing
2. [Real Estate Investments](https://money.usnews.com/investing/real-estate-investments)
3. [Investing](https://money.usnews.com/investing)
4. [Money](https://money.usnews.com)
5. [Home](https://www.usnews.com)

# Understanding Capital Gains Tax on a Real Estate Investment Property

Real estate properties generate income for investors, but taxes play a factor in returns.

![](https://www.usnews.com/object/image/00000180-61bd-d187-a5cb-ffbdd79e0000/ellen-chang.jpg?update-time=&size=responsiveSquare300)

By[Ellen Chang](https://www.usnews.com/topics/author/ellen-chang)

\|

Jan. 27, 2021

![](https://www.usnews.com/object/image/00000180-61bd-d187-a5cb-ffbdd79e0000/ellen-chang.jpg?update-time=&size=responsiveSquare300)

By[Ellen Chang](https://www.usnews.com/topics/author/ellen-chang)

\|

Jan. 27, 2021, at 2:23 p.m.

Save

_More_

[![U.S. News & World Report](https://www.usnews.com/static/img/usn-logo-large.svg)](https://www.usnews.com)

Capital Gains Tax in Real Estate Investing

_More_

![Shot of a mature couple going over their finances at home](https://www.usnews.com/object/image/00000177-4549-d83f-afff-456d795c0000/210127-investing-stock.jpg?update-time=1611775223884&size=responsive640)

Getty Images

Changes in tax laws have resulted in more complications, and owners of rental properties should invest more time and resources on tax planning.

Owning real estate produces steady income for investors, but the sale of residential and business properties can generate a large tax bill because of capital gains.

Investors should understand the various factors that can help them mitigate and potentially defer paying [capital gains tax](https://money.usnews.com/investing/term/capital-gains-tax) from selling [real estate](https://money.usnews.com/investing/articles/best-places-to-invest-in-real-estate) properties.

Rental property owners will benefit from lower ordinary income tax rates and other favorable changes to the tax brackets for 2018 through 2025, says Michael Underhill, chief investment officer of Capital Innovations in Pewaukee, Wisconsin.

Changes in tax laws have resulted in more complications, and owners of [rental properties](https://money.usnews.com/investing/real-estate-investments/articles/2017-08-23/a-guide-for-investing-in-rental-property) should invest more time and resources on tax planning, says Sarah Hallock, a tax senior manager for New York-based tax and accounting firm EisnerAmper.

"Recent legislation has granted some benefits to real estate investors, such as the potential tax savings from the 20% deduction for qualified business income and the immediate write-off for qualified improvements," she says.

On the other hand, the limitation on business interest expense deductions has had a significant negative impact on leveraged rental activities, Hallock says.

"The Coronavirus Aid, Relief, and Economic Security (CARES) Act offers some much-needed relief with regard to the temporary easing of the limitation on interest expensing," she says.

Sponsored Brokers

1 [Interactive Brokers](https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.interactivebrokers.com%2Fmkt%2F%3Fsrc%3Dusnews3%26url%3D%252Fen%252Ftrading%252Flp-why-ibkr.php&data=05%7C01%7Caclaflin%40interactivebrokers.com%7Cdf7b54bdd1714344041f08db094f2a5a%7C7abd04ef837d48e69ba869d84f65a110%7C0%7C0%7C638114007899079898%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=nfUtCfYdKSECMoP72fGWuZ7cQHpG41lHcfBHWiMb9EY%3D&reserved=0)

[![logo](https://www.usnews.com/object/image/0000017b-c6ff-d677-a7ff-efffad250000/210908interactivebrokerslogo-advertising.png?update-time=1631131564108&size=responsiveFlow230)](https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.interactivebrokers.com%2Fmkt%2F%3Fsrc%3Dusnews3%26url%3D%252Fen%252Ftrading%252Flp-why-ibkr.php&data=05%7C01%7Caclaflin%40interactivebrokers.com%7Cdf7b54bdd1714344041f08db094f2a5a%7C7abd04ef837d48e69ba869d84f65a110%7C0%7C0%7C638114007899079898%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=nfUtCfYdKSECMoP72fGWuZ7cQHpG41lHcfBHWiMb9EY%3D&reserved=0)

Account Minimum

$0

Fee

$0

Low commission rates start at $0 for U.S. listed stocks & ETFs\*. Margin loan rates from 5.83% to 6.83%.

[Open An Account](https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.interactivebrokers.com%2Fmkt%2F%3Fsrc%3Dusnews3%26url%3D%252Fen%252Ftrading%252Flp-why-ibkr.php&data=05%7C01%7Caclaflin%40interactivebrokers.com%7Cdf7b54bdd1714344041f08db094f2a5a%7C7abd04ef837d48e69ba869d84f65a110%7C0%7C0%7C638114007899079898%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=nfUtCfYdKSECMoP72fGWuZ7cQHpG41lHcfBHWiMb9EY%3D&reserved=0)

View Disclosure

2 [Gemini](https://gemini.sjv.io/USNews?subId1={{USN_CLICK_ID}})

[![logo](https://www.usnews.com/object/image/0000018e-5c17-d002-a3af-7cf7d6620000/gemini-logo.png?update-time=1710942072207&size=responsiveFlow230)](https://gemini.sjv.io/USNews?subId1={{USN_CLICK_ID}})

Account Minimum

$0

Fee

0.2% Maker Fee / 0.4% Taker Fee

Gemini is well-suited for crypto traders of any skill level and available in all 50 states. Sign up and trade to get $10 in bitcoin.

[Open An Account](https://gemini.sjv.io/USNews?subId1={{USN_CLICK_ID}})

3 [Public](https://secure.money.com/pr/oa60795bb066&s1={{USN_CLICK_ID}})

[![logo](https://www.usnews.com/object/image/00000191-dbfc-d08e-a39f-dbfd1ce70000/public-logo-color-4.svg?update-time=1725972669549&size=responsiveFlow230)](https://secure.money.com/pr/oa60795bb066&s1={{USN_CLICK_ID}})

Account Minimum

$0

Fee

$0

Commission-free trading on stocks & ETFs. Earn $+0.06 per options contract and 5.1% APY on cash with no restrictions.

[Open An Account](https://secure.money.com/pr/oa60795bb066&s1={{USN_CLICK_ID}})

View Disclosure

Related:

[Sign up for stock news with our Invested newsletter.](https://money.usnews.com/investing/advice/articles/invested)

### Impact on Tax Loss Harvesting

Many real estate investors faced limitations on the deduction of losses as a result of the passive activity loss limitations that have been in effect since 1986, Hallock says.

"Rental losses are generally treated as passive and can only be used to offset [passive income](https://money.usnews.com/investing/real-estate-investments/slideshows/rules-for-using-real-estate-investments-for-passive-income), with any excess losses carried forward to subsequent years," she says.

Real estate professionals, known as REPs, are a category of investors whose activities predominantly involve real estate. They were exempt from these limitations.

Recent tax reform under the Tax Cuts and Jobs Act of 2017 introduced additional limitations on the ability of taxpayers, including REPs, to deduct losses by instituting limitations on the deduction of net operating losses and annual business losses, Hallock says.

"In light of the impact that the COVID-19 pandemic has had, the CARES Act offers some temporary relief to REPs by delaying the limitations on loss utilization," she says.

SEE:

[9 Facts About Mutual Fund Capital Gains.](https://money.usnews.com/investing/funds/slideshows/facts-about-mutual-fund-capital-gains)

### Options for Investors

Purchasing a rental property certainly isn't the only way for investors to participate in the real estate market, Hallock says. Individuals can also invest in publicly traded real estate investment trusts, or [REITs](https://money.usnews.com/investing/articles/best-reit-etfs-to-buy-now), [private equity](https://money.usnews.com/investing/term/private-equity) funds and qualified opportunity zone funds, she says.

Another approach some investors have taken is using a 1031 exchange, which comes from Section 1031 of the U.S. Internal Revenue Code.

Some real estate investors choose this option to minimize tax liability when they are planning to buy multiple properties over time, says Bill Golden, a real estate agent with RE/MAX Around Atlanta Realty who helped a client invest in rental property via a 1031 exchange and has been an investor and owner himself.

When investors sell one property and buy another, they can invoke the 1031 exchange, if the properties qualify, and defer capital gains, he says. "Even though your swaps are taxable, if they meet 1031 requirements, the investor has no tax or at least fewer taxes due at the time of the exchange."

A 1031 strategy can be used several times, allowing investors to defer capital gains, eventually paying at a long-term capital gains rate, Golden says.

"There are a lot of ins and outs and nuances to 1031 exchanges, so real estate investors should work both with a realtor who has some familiarity with them and an attorney who is specifically familiar with 1031 exchanges," he says.

Rental properties are a "great" short-term and [long-term investment strategy](https://money.usnews.com/investing/real-estate-investments/articles/rules-for-buy-and-hold-real-estate-investing) since being a landlord is financially rewarding, Golden says. It can also be challenging and frustrating.

Cash flow and occupancy are the keys to return on investment.

"Just because you purchase a great property doesn't mean you will find a tenant and keep the place rented," he says. "Understand that in today's credit market, financial independence is a prerequisite to owning. Lenders have tightened guidelines and require more reserves and larger down payments to offset added risk."

Rental properties are the "most active and time-consuming forms of real estate investing in which you can engage, contrary to popular belief," Underhill says. He started answering phones at his family's real estate agency at 8 years old. Underhill worked there until age 18 and saw firsthand how much time and effort it took to [invest in real estate](https://money.usnews.com/investing/real-estate-investments/articles/real-estate-investing-courses).

Tax laws should never drive the decision to make a real estate investment, says Adam Salis of Salis Law in Mission Viejo, California.

"There are certainly myriad tax benefits from investing in real estate, including interest deductions and depreciation, but the fundamentals of a good investment should always be in place regardless of the tax benefits," he says.

He adds that investors should consider the overall physical and environmental condition of the real estate land and improvements as well as "the durability of the income stream, the potential for future improvement to the real estate or to that income stream and, of course, that old axiom of location, location, location. Tax laws change over time, but these fundamentals do not change."

SEE:

8 Best High-Yield REITs to Buy.

### Where to Seek Advice on Real Estate Investments

Since real estate transactions can be complicated, investors should seek advice from more than just one type of expert. A good accountant will provide more than just financial statements and tax compliance, Hallock says.

"Your accountant might connect you with a financial services consultant to assist with a loan restructuring if your property is distressed or a management consultant if your family real estate business is experiencing growing pains," she says. "An experienced real estate accountant can also help put together your team."

Investors should seek guidance from investment and loan brokers, Salis says. After an investment is identified, a team of experts should include the accountant, real estate attorney and other professionals to assist with property evaluation and due diligence, he says.

[**8 Real Estate Investing Mistakes**\
\
![Business Towers](https://www.usnews.com/object/image/0000016c-1ab5-d6ee-a17d-1eb58aa80000/190722-buildings-stock.jpg?update-time=1563816268301&size=responsive640)\
\
View All 11 Slides](https://money.usnews.com/investing/real-estate-investments/slideshows/real-estate-investing-mistakes-to-avoid)

Tags: [investing](https://www.usnews.com/topics/subjects/investing), [income investing](https://www.usnews.com/topics/subjects/income-investing), [real estate](https://realestate.usnews.com/topics/subjects/real-estate), [money](https://www.usnews.com/topics/subjects/money), [taxes](https://www.usnews.com/topics/subjects/taxes), [tax deductions](https://www.usnews.com/topics/subjects/tax_deductions), [capital gains](https://www.usnews.com/topics/subjects/capital-gains), [capital gains taxes](https://www.usnews.com/topics/subjects/capital-gains-taxes)

#### The Most Important Ages for Retirement Planning

[The Most Important Ages for Retirement Planning: Age 50](https://money.usnews.com/money/retirement/articles/2017-09-01/the-most-important-ages-for-retirement-planning-age-50)

[![](https://www.usnews.com/object/image/0000014a-3622-d084-a1fa-f62f6d920000/141210-retiredcouple-stock.jpg?update-time=1518197483415&size=responsiveSquare150)](https://money.usnews.com/money/retirement/articles/2017-09-01/the-most-important-ages-for-retirement-planning-age-50)

[The Most Important Ages for Retirement Planning: Age 59 ½](https://money.usnews.com/money/retirement/articles/2017-09-01/the-most-important-ages-for-retirement-planning-age-59)

[![](https://www.usnews.com/object/image/00000142-9276-d33c-abc6-ff774d540000/42278WideModern_RetirementPlanning_052913.jpg?update-time=1501084467090&size=responsiveSquare150)](https://money.usnews.com/money/retirement/articles/2017-09-01/the-most-important-ages-for-retirement-planning-age-59)

[The Most Important Ages for Retirement Planning: Age 65](https://money.usnews.com/money/retirement/articles/2017-09-01/the-most-important-ages-for-retirement-planning-age-65)

[![](https://www.usnews.com/object/image/00000148-f6e2-d526-a5db-ffe628490000/141009-retiredcouple-stock.jpg?update-time=1509467506436&size=responsiveSquare150)](https://money.usnews.com/money/retirement/articles/2017-09-01/the-most-important-ages-for-retirement-planning-age-65)

[The Most Important Ages for Retirement Planning: Age 66](https://money.usnews.com/money/retirement/articles/2017-09-01/the-most-important-ages-for-retirement-planning-age-66)

[![](https://www.usnews.com/object/image/00000152-1cba-d78b-a576-5dbfe0c30000/160107-womanatpeace-stock.jpg?update-time=1518197514911&size=responsiveSquare150)](https://money.usnews.com/money/retirement/articles/2017-09-01/the-most-important-ages-for-retirement-planning-age-66)

[The Most Important Ages for Retirement Planning: Age 70 ½](https://money.usnews.com/money/retirement/articles/2017-09-01/the-most-important-ages-for-retirement-planning-age-70)

[![](https://www.usnews.com/object/image/0000014e-0c55-d7a8-ab6e-de778c3b0000/150619-seniorpet-stock.jpg?update-time=1434726077328&size=responsiveSquare150)](https://money.usnews.com/money/retirement/articles/2017-09-01/the-most-important-ages-for-retirement-planning-age-70)

Comparative assessments and other editorial opinions are those of U.S. News
and have not been previously reviewed, approved or endorsed by any other
entities, such as banks, credit card issuers or travel companies. The content
on this page is accurate as of the posting date; however, some of our partner offers may have expired.

Read More

![](https://media.beam.usnews.com/ab/7a/381626494dbfb8b167dd76b27c90/190718-investedusnlogo-design.png)

Subscribe to our daily newsletter to get investing advice, rankings and stock market news.

See a [newsletter example](https://link.messaging.usnews.com/view/56cdc18c17893f43728b4571a2fx2.m/7d3bd5cb).

## You May Also Like

[**7 Best Dividend ETFs to Buy Now** \
\
These leading exchange-traded funds offer different income strategies.\
\
Jeff ReevesSept. 12, 2024\
\
![](https://www.usnews.com/object/image/0000018f-97c5-d88e-abcf-f7c7bbc40000/gettyimages-1609110306.jpg?update-time=1716238319083&size=responsiveSquare150)](https://money.usnews.com/investing/articles/best-dividend-etfs-to-buy-now)

[**10 Best Value Stocks to Buy Now** \
\
Cash in on forthcoming interest rate cuts with these leading value stocks.\
\
Ian BezekSept. 12, 2024\
\
![](https://www.usnews.com/object/image/00000191-e7ad-d654-a9b1-efed7f060000/gettyimages-1737776861.jpg?update-time=1726168928551&size=responsiveSquare150)](https://money.usnews.com/investing/articles/best-value-stocks-to-buy-now)

[**7 Best Fidelity Mutual Funds to Buy** \
\
These top Fidelity mutual funds have characteristics particularly suitable for long-term investors.\
\
Tony DongSept. 12, 2024\
\
![](https://www.usnews.com/object/image/0000015d-858f-d768-a55f-f58f366b0000/170727-laptop-stock.jpg?update-time=1526048422656&size=responsiveSquare150)](https://money.usnews.com/investing/articles/best-fidelity-mutual-funds-to-buy-and-hold)

[**7 Best Investments During a Recession** \
\
Navigating a recession means continuing to invest and maximizing "buy low, sell high" opportunities.\
\
Kate StalterSept. 12, 2024\
\
![](https://www.usnews.com/object/image/00000191-e778-d1d5-a59f-e7fecfff0000/https-media-gettyimages-com-id-2080707796-photo-molten-gold-poured-into-a-mold.jpg?update-time=1726165363751&size=responsiveSquare150)](https://money.usnews.com/financial-advisors/articles/best-investments-during-a-recession)

[**7 Best Monthly Dividend ETFs** \
\
These top-quality funds pay out every month and offer high yields.\
\
Glenn FydenkevezSept. 11, 2024\
\
![](https://www.usnews.com/object/image/00000191-e263-da4e-a5f9-e2f75ca90000/gettyimages-1441255963.jpg?update-time=1726080103931&size=responsiveSquare150)](https://money.usnews.com/investing/articles/best-monthly-dividend-etfs-to-buy-now)

[**5 Best Charles Schwab Money Market Funds** \
\
Schwab's lineup of money market funds is accessible to a wide range of individual investors. \
\
Tony Dong and Brady PorcheSept. 11, 2024\
\
![](https://www.usnews.com/object/image/00000181-4952-dac1-a1ad-59f6ba430000/gettyimages-1249077284.jpg?update-time=1654792566452&size=responsiveSquare150)](https://money.usnews.com/investing/articles/best-schwab-money-market-funds)

[**Biggest Financial Fraud Cases** \
\
The tools and techniques may have changed, but financial fraud is as pervasive as ever.\
\
Brian O'ConnellSept. 11, 2024\
\
![](https://www.usnews.com/object/image/0000014f-d3d8-d54c-a16f-d7ff979b0000/150915-enron-editorial.jpg?update-time=1442368334636&size=responsiveSquare150)](https://money.usnews.com/investing/articles/biggest-corporate-frauds-in-history)

[**10 Best Health Care Stocks to Buy** \
\
Analysts see big upside for these undervalued health care stocks.\
\
Wayne DugganSept. 11, 2024\
\
![](https://www.usnews.com/object/image/00000191-e267-da4e-a5f9-e2f728820000/gettyimages-114857452.jpg?update-time=1726080330592&size=responsiveSquare150)](https://money.usnews.com/investing/articles/best-health-care-stocks-to-buy-this-year)

[**Recession 2024: How to Prepare** \
\
Recession chances remain elevated heading into the final half of 2024.\
\
Wayne DugganSept. 11, 2024\
\
![](https://www.usnews.com/object/image/00000190-988d-d316-a5db-dadd2c580000/https-media-gettyimages-com-id-1221650152-photo-dollar-bill-and-covid-19-newspaper-headlines.jpg?update-time=1720546326559&size=responsiveSquare150)](https://money.usnews.com/investing/articles/recession-2024-what-to-watch-how-to-prepare)

[**Dividend Stocks to Buy and Hold** \
\
Dividend stocks offer long-term investors unique benefits.\
\
Wayne DugganSept. 10, 2024\
\
![](https://www.usnews.com/object/image/00000191-dd50-d4ee-a5b7-ddf2b2e30000/https-media-gettyimages-com-id-1793413438-photo-home-depot-sales-slip-but-quarterly-earnings-still-beat-expectations.jpg?update-time=1725995124811&size=responsiveSquare150)](https://money.usnews.com/investing/articles/dividend-stocks-to-buy-and-hold-forever)

[**Fidelity vs. Charles Schwab** \
\
Trading platforms, tools and support can set investment firms apart.\
\
Marc GubertiSept. 10, 2024\
\
![](https://www.usnews.com/object/image/00000183-6b37-d0fa-a5a7-6bb7f7700000/gettyimages-860322046-1.jpg?update-time=1663951173350&size=responsiveSquare150)](https://money.usnews.com/investing/articles/fidelity-vs-charles-schwab-which-is-better)

[**Are Brokerage Accounts Taxed?** \
\
How brokerage account taxes are applied can depend on the type of brokerage account and investment.\
\
Coryanne HicksSept. 10, 2024\
\
![](https://www.usnews.com/object/image/0000015f-e4e6-d412-a5ff-fff6bcfe0000/171122-meeting-stock.jpg?update-time=1511374040993&size=responsiveSquare150)](https://money.usnews.com/investing/articles/are-brokerage-accounts-taxed)

[**6 Best Cryptocurrencies to Buy** \
\
Crypto is having a moment in 2024. Here's a look at some top buys.\
\
John DivineSept. 10, 2024\
\
![](https://www.usnews.com/object/image/0000018f-e433-d4ed-addf-f63347e70000/https-media-gettyimages-com-id-486972474-photo-commuter-parking-his-bicycle-outside-the-office.jpg?update-time=1717520516172&size=responsiveSquare150)](https://money.usnews.com/investing/cryptocurrency/articles/whats-the-best-cryptocurrency-to-buy)

[**Natural Gas Stocks to Buy** \
\
Many natural gas investments aren't for beginners due to their volatility, but they have the potential to outperform the stock market. \
\
Marc GubertiSept. 10, 2024\
\
![](https://www.usnews.com/object/image/00000191-dd08-d652-a1f9-dfde52690000/https-media-gettyimages-com-id-1816397703-photo-gas-pipeline-at-sunset-gas-supply.jpg?update-time=1725990250753&size=responsiveSquare150)](https://money.usnews.com/investing/articles/best-natural-gas-stocks-to-buy)

[**7 Best Vanguard Funds for Retirement** \
\
Vanguard funds are a great choice for retirement investing thanks to their low cost structure and high quality.\
\
Coryanne HicksSept. 9, 2024\
\
![](https://www.usnews.com/object/image/00000191-d864-d7e7-a5b3-dc763c060000/https-media-gettyimages-com-id-1254423087-photo-carefully-checking-the-numbers.jpg?update-time=1725912362861&size=responsiveSquare150)](https://money.usnews.com/investing/articles/best-vanguard-funds-for-retirement)

[**9 ETFs to Buy When Interest Rates Fall** \
\
As the Federal Reserve changes course, investment opportunities may also change.\
\
Jeff ReevesSept. 9, 2024\
\
![](https://www.usnews.com/object/image/0000018c-6f1f-d8d4-a9ed-6fdfb7bf0000/https-media-gettyimages-com-id-1305763977-photo-asian-man-using-laptop-in-shop.jpg?update-time=1702671438406&size=responsiveSquare150)](https://money.usnews.com/investing/articles/etfs-to-buy-when-interest-rates-fall)

[**7 Best Small-Cap Tech Stocks to Buy** \
\
These small-cap tech stocks are riskier than larger companies but could offer greater returns.\
\
Wayne DugganSept. 9, 2024\
\
![](https://www.usnews.com/object/image/00000191-d80a-d8b8-adf7-f97aba690000/https-media-gettyimages-com-id-1383023289-photo-young-professional-man-giving-presentation-in-modern-office-space.jpg?update-time=1725906466479&size=responsiveSquare150)](https://money.usnews.com/investing/articles/best-small-cap-tech-stocks-to-buy)

[**9 of the Best Bond ETFs to Buy Now** \
\
Bond ETFs are highly versatile, capable of being used for speculation, income or protection.\
\
Tony DongSept. 9, 2024\
\
![](https://www.usnews.com/object/image/00000191-d80e-dfec-adfb-fdee81f80000/https-media-gettyimages-com-id-1978704047-photo-young-woman-using-laptop-computer-while-lying-on-the-bed-in-camper-trailer.jpg?update-time=1725906714619&size=responsiveSquare150)](https://money.usnews.com/investing/articles/best-bond-etfs-to-buy-now)

[**10 Best Artificial Intelligence Stocks** \
\
Analysts recommend these stocks with AI and automation as central parts of their businesses. \
\
Wayne DugganSept. 9, 2024\
\
![](https://www.usnews.com/object/image/00000191-d7c2-ddd7-add5-d7c329380000/gettyimages-1508780671.jpg?update-time=1725901853048&size=responsiveSquare150)](https://money.usnews.com/investing/articles/artificial-intelligence-stocks-the-10-best-ai-companies)

[**What Are Magnificent 7 Stocks?** \
\
The "Magnificent 7" has emerged as a replacement for FAANG stocks.\
\
Wayne DugganSept. 6, 2024\
\
![](https://www.usnews.com/object/image/00000191-c8b7-d2ba-a5d1-dbffe17f0000/https-media-gettyimages-com-id-2169269249-photo-huawei-apple-store-in-shanghai.jpg?update-time=1725649464473&size=responsiveSquare150)](https://money.usnews.com/investing/articles/magnificent-7-stocks-explainer)

Load More

[News](https://www.usnews.com/news)

[Best Countries](https://www.usnews.com/news/best-countries)

[Best States](https://www.usnews.com/news/best-states)

[Healthiest Communities](https://www.usnews.com/news/healthiest-communities)

[U.S. News Decision Points](https://www.usnews.com/news/us-news-decision-points)

[Ideas & Opinions](https://www.usnews.com/opinion)

[Photos](https://www.usnews.com/photos)

[News](https://www.usnews.com/news)

[Games](https://games.usnews.com)

[Law Firms](https://law.usnews.com/law-firms)

[Practice Areas](https://law.usnews.com/law-firms/practice-area)

[Education](https://www.usnews.com/education)

[Colleges](https://www.usnews.com/best-colleges)

[Graduate Schools](https://www.usnews.com/best-graduate-schools)

[Online Colleges](https://www.usnews.com/education/online-education)

[Global Universities](https://www.usnews.com/education/best-global-universities)

[K-12 Schools](https://www.usnews.com/education/k12)

[Community Colleges]( https://www.usnews.com/education/community-colleges)

[Education Rankings](https://www.usnews.com/education/rankings)

[College Advisor](https://www.collegeadvisor.com)

[TeenLife](https://www.teenlife.com/)

[Rankings](https://www.usnews.com/rankings)

[All Rankings](https://www.usnews.com/rankings)

[Health](https://health.usnews.com/)

[Hospitals](https://health.usnews.com/best-hospitals)

[Ambulatory Surgery Centers](https://health.usnews.com/best-ascs)

[Doctors](https://health.usnews.com/doctors)

[Senior Living](https://health.usnews.com/best-senior-living)

[Wellness](https://health.usnews.com/wellness)

[Diets](https://health.usnews.com/best-diet)

[Health Insurance](https://health.usnews.com/health-insurance)

[Conditions](https://health.usnews.com/conditions)

[Patient Advice](https://health.usnews.com/topics/subjects/patient-advice)

[Healthcare of Tomorrow](https://www.usnews.com/news/healthcare-of-tomorrow)

[Money](https://money.usnews.com/)

[Investing](https://money.usnews.com/investing)

[Retirement](https://money.usnews.com/money/retirement)

[Credit Cards](https://money.usnews.com/credit-cards)

[Loans](https://money.usnews.com/loans)

[Banking](https://www.usnews.com/banking)

[Personal Finance](https://money.usnews.com/money/personal-finance)

[Careers](https://money.usnews.com/careers)

[Real Estate](https://realestate.usnews.com/)

[Best Places to Live](https://realestate.usnews.com/places)

[Best Places to Retire](https://realestate.usnews.com/places/rankings/best-places-to-retire)

[Find an Agent](https://realestate.usnews.com/agents/)

[Cars](https://cars.usnews.com/cars-trucks)

[New Cars](https://cars.usnews.com/cars-trucks/browse)

[Used Cars](https://cars.usnews.com/cars-trucks/used-cars)

[Car Rankings](https://cars.usnews.com/cars-trucks/rankings)

[Best Car Deals](https://cars.usnews.com/cars-trucks/best-car-deals)

[Cars for Sale](https://cars.usnews.com/cars-trucks/new-cars/for-sale)

[Car Buying Advice](https://cars.usnews.com/cars-trucks/advice)

[Travel](https://travel.usnews.com/)

[Vacations](https://travel.usnews.com/rankings/)

[Travel Guides](https://travel.usnews.com/destinations/)

[Hotels](https://travel.usnews.com/Hotels/)

[Cruises](https://travel.usnews.com/cruises/)

[Rewards](https://travel.usnews.com/rankings/travel-rewards/)

[360 Reviews](https://www.usnews.com/360-reviews)

[Home Security](https://www.usnews.com/360-reviews/services/home-security)

[Mattress](https://www.usnews.com/360-reviews/sleep/mattress)

[Home Warranty](https://www.usnews.com/360-reviews/services/home-warranty)

[Internet Providers](https://www.usnews.com/360-reviews/services/internet-providers)

[Identity Theft Protection](https://www.usnews.com/360-reviews/privacy/identity-theft-protection)

[UK](https://www.usnews.com/uk)

[360 Reviews UK](https://www.usnews.com/uk/360-reviews)

[Insurance](https://www.usnews.com/insurance)

[Car Insurance](https://www.usnews.com/insurance/auto)

[Home Insurance](https://www.usnews.com/insurance/homeowners-insurance)

[Life Insurance](https://www.usnews.com/insurance/life-insurance/best-life-insurance-companies)

[Renters Insurance](https://www.usnews.com/insurance/renters-insurance)

[Pet Insurance](https://www.usnews.com/insurance/pet-insurance)

[News](https://www.usnews.com/news)

[Law Firms](https://law.usnews.com/law-firms)

[Education](https://www.usnews.com/education)

[Rankings](https://www.usnews.com/rankings)

[Health](https://health.usnews.com/)

[Money](https://money.usnews.com/)

[Real Estate](https://realestate.usnews.com/)

[Cars](https://cars.usnews.com/cars-trucks)

[Travel](https://travel.usnews.com/)

[360 Reviews](https://www.usnews.com/360-reviews)

[UK](https://www.usnews.com/uk)

[Insurance](https://www.usnews.com/insurance)

[![U.S. News & World Report](https://www.usnews.com/static/img/usn-logo-large.svg)](https://www.usnews.com)

[About U.S. News](https://www.usnews.com/info/features/about-usnews)

[Editorial Guidelines](https://www.usnews.com/about-us/editorial-guidelines)

[Contact](https://www.usnews.com/info/features/contact)

[Press](https://www.usnews.com/info/blogs/press-room)

[Advertise](https://mediakit.usnews.com)

[Newsletters](https://emailprefs.usnews.com/emailprefs/newsletters-index)

[Jobs](https://www.usnews.com/info/features/employment)

[Site Map](https://www.usnews.com/info/features/sitemap)

[Store](https://www.usnews.com/products/features/home?src=usnfooter)

[U.S. News & World Report Facebook page](https://www.facebook.com/usnewsandworldreport)[U.S. News & World Report Twitter page](https://twitter.com/usnews)

Copyright 2024 © U.S. News & World Report L.P.[Terms & Conditions](https://www.usnews.com/info/features/terms)/ [Privacy Policy](https://www.usnews.com/features/info/privacy)/ [U.S. State Privacy Notice](https://www.usnews.com/features/info/privacy/state-notice)/Your Privacy ChoicesCalifornia Consumer Privacy Act (CCPA) Opt-Out Icon

[U.S. News & World Report Facebook page](https://www.facebook.com/usnewsandworldreport)[U.S. News & World Report Twitter page](https://twitter.com/usnews)