In the past week, you may have seen that the House Ways and Means Committee released a draft of significant tax legislation.  While the bill will not be debated in Congress and finalized in the weeks to come, I want to summarize eleven key proposed changes so that you can start taking action before the legislation is signed and specific planning windows are closed. 

Recently I heard a story from a 67-year old woman who had gotten divorced after twenty years of marriage. She had raised her daughter at home while she was younger and she didn't get much at all from the divorce. She is now collecting about $900 per month from Social Security income and working part-time to get by while sharing an apartment with others. She is fearful about her financial future because she has never managed money before and it's hard for her to find a job at her age. This

It’s tax season again, and a question we get from a number of clients after receiving their year end statements is, “Are my investment advisory fees tax deductible?” And the answer is an equivocal, “It depends.”

Congress did grant a tax deduction for certain investment expenses, but with anything to do with the tax code, the devil’s is in the details. Not to worry though, we’ll use this opportunity to settle the issue no matter your situation.

Have you ever wondered how to merge savings into your budget? What if there was a way to save efficiently without putting you in a panic about having enough money on hand to pay monthly expenses or for discretionary spending? Think about your spending habits for a second. Most of the time, we don’t even think twice about swiping a card or dishing out cash for smaller purchases and monthly expenses. If you live in an apartment, you pay rent. You might also have a car payment, utilities, or a

Independence Day is one of America’s favorite summer holidays. What is one of your favorite traditions on Independence Day: fireworks, hotdogs, parades? In this blog, I want to talk about another kind of Independence Day, your Financial Independence Day.

If money and time were not an issue, what kind of activities would you be doing over the next twelve months? The day when work becomes optional—when you can choose to stop working and start doing those activities that you enjoy while

Nobody likes thinking about the end, or picking a guardian to raise your children, or having to pick which of your children would best at managing your money in your absence. But the thing about estate planning is, if you don’t do it, you lose your say in how things are handled when you pass away or if you are incapacitated and unable to speak on your own behalf. Without a will, your estate may end up in court, divvied up based on a judge’s decision—not your own.

Donor Advised Funds can be set up easily to accomplish both tax savings and charitable giving goals.  Most people think they need to have a big sum of money before considering setting up their own family charitable fund.  But Donor Advised Funds are the most popular charitable vehicles for donors at many levels of wealth.  You can start your own donor advised fund with as little as $10,000.  I generally recommend a minimum of $50,000 to my clients if they plan to request

A traditional IRA is a fantastic retirement savings tool because you can minimize your current tax burden and pay taxes on your contributions later. There are some instances, though, when you may want to take care of what you owe the government now so that you can avoid subsequent taxes down the road. To accomplish this goal, you’ll want to convert some of your traditional IRA balance to a Roth as Roth IRA distributions in the future including all the gains will be income tax-free.

When might

Last month, one of my new clients and I called the administrator of her old 401(k) plan to rollover the balance to her IRA account at TD Ameritrade.  To her surprise, she had $36,000 in after-tax contributions (not the same as a Roth) with earnings of $70,000 from the after-tax contributions she made many years ago in addition to $700,000 pre-tax contributions and earnings.  She was able to request two checks - one for the $36,000 to a new Roth IRA account (a Roth conversion that is

The deadline for 2017 benefits enrollment is approaching quickly for many employees.  More and more employers have started to offer high-deductible health insurance plans in addition to the traditional HMO or PPO plans.  You can set up health savings accounts (HSAs) only if you choose one of the high-deductible health insurance plans instead of the traditional HMO or PPO health insurance plans with co-pays.  What do you need to know about HSAs in order to make a wise decision for

When I worked as a tax CPA for KPMG in the late 90s, I served many corporate executives and wealthy families as their senior tax specialist and prepared many individual income tax returns, trust returns, and gift tax returns. Now, I use that knowledge and expertise to help my affluent and high-income clients plan ahead to keep more money in their pockets by using smart tax savings strategies. 

Looking at this Historical Tax Rate Chart 1913-2021, you can see that the current top income

A Health Savings Account (HSA) can be a powerful tool to help you save and invest, now, to pay for your qualified medical expenses (QMEs) during retirement.  The HSA has become popular as more and more employers move to high deductible health plans (HDHP) in order to reduce insurance premiums.  Employees must choose the HDHPs instead of traditional health insurance plans if they want to use their HSAs to fill the gap.  I have used HSAs personally for about 10 years and I

A college diploma opens the door to a lifetime of higher earnings. Based on Bureau of Labor Statistics, in 2016 dollars, Bachelor's degree holders earn nearly $1 million more over a lifetime than those who have only a high school diploma. Those with professional degrees earn over $2 million more. In addition, college graduates enjoy much better job security and opportunity, especially during economic downturns. Based on "The State of Entry-Level Employment in the U.S. March 2017" by The

With anticipating changes in tax laws happening next year, it's time to review your estate plan to ensure it will continue to achieve your goals by minimizing estate taxes. 

The federal government currently imposes a gift tax on lifetime gifts and an estate tax on transfers on death.  A properly structured estate plan can reduce taxes by taking full advantage of the available tax exemptions, specifically the gift and estate tax "unified credit".  The unified credit permits every

There is so much to consider when making investment decisions, especially when you’re working toward meeting specific short- and long-term financial goals. This is certainly true of the tax implications of your investment strategy, as taxes can reduce your investment returns from year to year and jeopardize your ability to achieve your goals. This is especially true if you fall into a higher federal income tax bracket, making it even more important to consider the impact of taxes when making

One of the biggest decisions many of our clients face is what to do with their 401(k) plan when they leave their employer. There is no clear cut answer as to whether you should roll over your 401(k) plan to an IRA, another employer’s 401(k) plan, or simply to leave it where it is, because it involves several different factors, including long term investment costs and the availability of investment options within the plans. Both can impact the long term performance of your retirement plan

Recent world events have made it clearer than ever that it’s imperative to have a long-term financial strategy that allows you to weather volatile economic times. The Roth IRA is a popular tax-minimizing strategy, as it allows for tax-free growth and withdrawals in retirement, and many people make it part of their long-term financial plan. Unfortunately, high-income earners are either limited or ineligible when it comes to Roth contributions. At the moment, that means single individuals with

One of the keys to wealth building is protecting as much of your income as possible, making it crucial for high-income earners to develop a smart tax savings strategy. Health Savings Accounts (HSAs) are a great tool to help you accomplish this goal, yet they are often overlooked or misunderstood. When you do take advantage of an HSA – and you use it correctly – it provides an easy annual income tax deduction, but it can also create dedicated, tax-free savings for your healthcare needs in

You may have heard of the 4% rule for withdrawals during retirement as you approach your retirement. I would like to clarify this rule in this blog post and offer some thoughts on how to withdraw from your nest egg to make the money last for at least your lifetime.