Asset Location: The High Cost Mistakes People Make

Earlier this month, we published an article explaining why investors would be well served to organize their portfolios like their kitchens.  This process, one that the finance industry calls ‘asset location’, is simply intended to make the most of the existing tax code.  The IRS sets the rules with different tax treatment for different account types [...]

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 [...]

Why Non-Deductible IRA Contributions Are Generally a Bad Idea

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 [...]

Protecting Children and Grandchildren with an IRA Trust

One of the most challenging roles of parenting is finding the proper balance between protecting children too much and not enough.  In the early years, we cover electrical outlets, protect household edges with soft bumpers, and spend hours analyzing all the safety features of car seats.  Parental protection then evolves to monitoring what our children [...]

Potential Death of Backdoor Roth, Stretch IRA, and Other Financial Planning Strategies

President Obama unveiled the Fiscal Year 2017 Budget last Tuesday (February 9th) which included several unexpected first-time proposals in addition to many crackdowns and “loophole closures” that have become annually recurring proposals.  Experts contend there is little likelihood of any substantial tax change in the final year of the President’s term.  However, we could see [...]

Roth 401(k) or Traditional 401(k)?

An important issue that often arises for working professionals seeking to save for retirement is whether to utilize a Traditional 401(k) or Roth 401(k) for retirement savings.  Although this dilemma may seem utterly confusing and resultantly receive less thought than the decision of whether to accept an old co-worker’s Facebook friend request, it can have a [...]

Act Now to Capture this Simple $700 Georgia Tax Credit

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 [...]

Tax Saving Tips for Graduate School and Other Low Income Years

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 [...]

Pros and Cons of Toddler Golf and Target Date Funds

There is a refreshing simplicity to the golf game of a toddler.  I appreciate this because my youngest son’s passion for golf is only superseded right now by that of chocolate chip cookies and his blanket.  He spends long stretches every day hitting a foam golf ball around the yard and occasionally we visit the [...]

Children as Dependents and College Tax Planning Strategies

Note: An updated version of this article was posted in May 2018 to reflect the new tax law under the Tax Cuts and Jobs Act.  It can be found here: http://rpgplanner.com/college-tax-planning-strategies/   Most questions in life that begin “Can I…” ideally ought to be prefaced with the question of “Should I…”  The distinction is important.  “Can [...]