High income families faced with high annual taxes are often looking for ways to reduce their taxes or save additional dollars in tax-efficient ways. Unfortunately, these well-intentioned pursuits often result in irrational behaviors (such as permitting the government to shortchange your retirement savings) or unfavorable outcomes (such as paying more taxes than you would have [...]
Since Section 529 was added to the Internal Revenue Code under the Small Business Job Protection Act of 1996, many families have discovered the significant advantages of the “Qualified Tuition Programs” which we collectively now refer to as 529 College Savings Plans. Among other benefits, these plans offer tax-exempt investment growth for any funds eventually [...]
One recurring question that we have fielded from clients over the past several months has nothing to do with the stock market, Roth conversions, the upcoming election, or Social Security changes. Instead, it takes some variation of the following: “Do you have advice on what credit card I should get to replace my Costco American [...]
There should be natural skepticism when a financial advisor creates a list of the best and worst questions to ask a financial advisor. It sounds a little like game show fixing of the 1950s where some contestants knew the questions before they were asked. However, experience provides a unique advantage. We have heard insightful questions and we have [...]
In November 2015, the Senate passed a bipartisan budget agreement to extend the government debt ceiling and avert a default. At this hour, the agreement is headed to the White House where the President is expected to sign it [Update: President Obama did sign this bill into law in December 2015]. While the initial headlines [...]
On a recent visit to the Museum of Modern Art (MoMA), I surprisingly stumbled upon an exhibit featuring classic video games such as Tetris, Asteroids, and Pac-Man. The games were displayed on active video screens with an adjacent explanation of the creativeness or design elegance for why they were each chosen. In their heyday, these [...]
The following article was originally published in 2015. Note that an updated explanation of the tax impact under the new Tax Cuts and Jobs Act exists here. Many of our early-career and mid-career professional clients face the annual reality of alternative minimum tax (AMT), knowingly or unknowingly. This secondary tax system captures a large segment [...]
Politicians. Used car salesman. Mechanics. There are but a few professions less trusted than financial advisors. The lack of consumer trust is arguably well-deserved as there is nothing trustworthy about opaque conflicts of interest, hidden fees, or bad advice that lines the advice giver’s pockets. There is nothing trustworthy about consumers being sold expensive annuities that [...]
Over the course of a career, many individuals will experience a year or more with limited income prior to retirement. It could be the result of a multi-month break from employment or simply the decision to temporarily leave the workforce for graduate school. These situations present powerful opportunities that are generally only available for a limited [...]
Buckle up, America. Higher interest rates are coming. Forget that we have collectively observed this erroneous warning a dozen times or so over the past decade. We also had 13 Triple Crown attempts since Affirmed in 1978 and consider what happened recently to that lengthy streak of failed expectations. For the first time since June 2006, [...]
