Asset Location: Organize Your Portfolio Like Your Kitchen

My family’s kitchen will not be profiled on HGTV as a model of organization.  We face the practical limitations of 25-year old builder-grade cabinets and constrained space.  We also face the reality confronted by many parents of young children.  That is, the focus of children emptying a clean dishwasher is on getting it done quickly [...]

Children as Dependents, Kiddie Tax, and College Tax Planning Strategies – Updated

A number of years ago, we authored this article explaining why higher income parents may be well served to gift appreciated investments to their children and then have the children use the proceeds to pay for college. The article further explained how taxpayers who faced alternative minimum tax (AMT) received no tax benefit from [...]

Good and Bad Reasons Why High Income Earners Miss the Opportunity With 529 Plans – Part I

Related Posts: Part II: High Income Earners and the Math of 529 Contributions Is Overfunding 529s Really so Terrible? More than 50,000 visitors in 2021… click here to sign up for our newsletter and never miss a post! (Don’t worry, we will not take up too much space in your inbox.  After four fun introductory [...]

High Income Earners Fail to Appreciate the Math of 529 Plans – Part II

We made the case in this earlier post that Section 529 College Savings Plans present a huge tax saving opportunity for high income parents but that most fail to exploit the opportunity.  Based on experience and observation, we cited five reasons that parents and grandparents fail to maximize the potential benefits.  Two of those reasons [...]

Should I Use a 529 College Savings Plan to Pay for Private K-12 Expenses?

When qualified state tuition programs (QSTPs) were first introduced in 1996 and Section 529 was added to the Internal Revenue Code, the intent of Congress was to create a create a tax-friendly way for families to save for college costs.  At that time, the law provided that any earnings in a QSTP would be tax [...]

Why I Bonds May Be the Most Underappreciated Savings Vehicle

Related posts on Investing in an Inflationary Environment: Deeper Dive into the Mechanics of Series I Bonds What are TIPS and how do they work? Sell Bonds in Inflationary Environments? Your end of year to-do list is already overflowing.  You have to prepare and send holiday cards, put up lights, get the holiday-themed lawn ornaments [...]

When Roth is Wrong

Related Posts: When ROTH is Wrong: Follow-Up Q & A  Opportunity for High Income Earners – the Backdoor Roth Conversion More than 50,000 visitors in 2021… click here to sign up for our newsletter and never miss a post! (Don’t worry, we will not take up too much space in your inbox.  After four fun [...]

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