Financial Planning, Tax Planning

The Trojan Horse of IRAs – The Backdoor Roth

In RCs and I Ain’t Talking Cars, I explained what a Roth conversion is, how to complete the process, and why you may want to consider it. But I didn't talk about the backdoor Roth. While it's technically a Roth conversion, the execution is slightly different. If you’re unfamiliar with the differences between Traditional IRAs… Continue reading The Trojan Horse of IRAs – The Backdoor Roth

Financial Planning, Tax Planning

Traditional or Roth – Which Should I Choose?

One of the most frequent questions I hear from investors is ‘should I contribute to tax-deferred accounts, like a Traditional -401k, Individual Retirement Account (IRA), or Simplified Employee Pension (SEP) or should I contribute to my Roth -401k or IRA?’ Before we get there, let’s do a quick refresher on both options. Tax-Deferred Accounts You… Continue reading Traditional or Roth – Which Should I Choose?

Estate Planning, Financial Planning, Tax Planning

How the SECURE Act Could be Detrimental to Your Beneficiaries

Many people own a trust as part of their estate plan. Prior to 2020, it was common to have the beneficiary of an IRA be a trust. A See-Through Trust allows individuals to pass IRAs, via a trust, to their trust beneficiaries. There are several reasons to name a trust as the beneficiary of an… Continue reading How the SECURE Act Could be Detrimental to Your Beneficiaries

Financial Planning, Tax Planning

It’s Not About What You Make, It’s About What You Keep

If you unfamiliar with the financial term Tax Cost Ratio (TCR,) you aren’t alone. TCR refers to the amount a fund’s annualized return is reduced by taxes because of distributions (including stock and bond dividends and capital gains distributions). If a fund has a one-year tax cost ratio 0.9%, it means an investor’s returns were… Continue reading It’s Not About What You Make, It’s About What You Keep

Financial Planning, Tax Planning

Fully Funded 529? How to Get $8,000 in Tax Credits

As laws change and the tax codes are updated, I’m always looking for planning opportunities for our clients. The most recent opportunity will impact only a small subset of our clients, but can save a family approximately $8,000 per college student. This strategy revolves around college planning and specifically focuses on college tuition funding, 529… Continue reading Fully Funded 529? How to Get $8,000 in Tax Credits

Financial Planning, Risk Management, Tax Planning

Focus on What You Can Control

$1,000 vs $100,000 Decisions Mitch Custenborder wrote an article about $1,000 vs $100,000 decisions. Mostinvestors want to see big returns, and who can blame them? However, I’d argue that is a $1,000 concern. The $100,000 thought would be “What return do I need”. Instead of focusing on returns and market movements that you and your… Continue reading Focus on What You Can Control