Why You Should Not Own Your Best Investment Idea in a Tax-Deferred IRA

The following paraphrases a conversation that I have had many times before with friends and clients.  It is obviously never the same dialogue but the underlying advice is the same - that you should generally not own your favorite investment or can't-miss stock idea in a traditional IRA.   Me: Did you buy this stock because [...]

How Apathetic, Ignorant, or Overcommitted is Your Financial Advisor?

All three of time, interest or passion, and knowledge are required to be successful at anything.  I might have the knowledge of how to mow my grass properly and I might enjoy mowing my grass but if I don’t have the time to mow my grass, then my lawn eventually becomes a mess.  Alternatively, I [...]

The Newly Expanded Benefit of the Qualified Charitable Distribution

What do Arnold Schwarzenegger, Steven Tyler, Stevie Nicks, Billy Crystal, and my father all have in common?  At least two things.  They will, God willing, all celebrate their 70 1/2 birthdays in 2018 and join the ranks of approximately 25 million others in the United States over this age (assuming, of course, that they all [...]

The Tax Saving Opportunity of a Lifetime for Early Retirees

Like it or not, the Affordable Care Act will again rule the health insurance marketplace in 2018 regardless of what happens in Congress with tax legislation or whether the individual mandate holds up over the coming weeks.  Also like it or not, there has been a dramatic increase in insurance premiums from the onset of [...]

How A Negligent Rule of Thumb Causes Poor Divorce and Estate Planning Decisions

An important consideration in divorce and estate planning that often gets ignored, underappreciated, or just poorly evaluated is the relative comparison of different account types: tax free accounts, tax deferred accounts, and taxable accounts.  While many people tend to think of $100,000 as $100,000, the account type in which the money resides can make a [...]

The Qualified Charitable Distribution Explained

The history of the qualified charitable distribution (QCD) feels a lot like the 'Friends' relationship of Rachel and Ross.  Off.  On.  Off.  On.  Off.  On.  There has been enough disruption in the availability of this tax-saving opportunity that it has been hard to remember if it is on or off.  Good news...it's on.  The brief history goes [...]

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 [...]