Fee-Only Financial Planning Advice

Why COVID-19 Is Changing The Way We View Money

Jan 04 2022

The COVID-19 pandemic upended the way people live their lives. From mask mandates and stay-at-home orders to vaccines and protective strategies, the last two years have had no shortage of drastic changes to how we live day-to-day. While the physical health of our communities will always be at the forefront of this discussion, there has also been a massive shift in the way people interact with their personal finances. The pandemic may not have only changed how you spend money but has likely shifted the way you view your career and overall relationship with your financial circumstances. What do these

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Rolling Over Your Roth 401(k)

Jan 03 2022

Roth 401(k) plans have been around for a while now, but here’s something you want to keep in mind about these accounts. When you leave your employer, generally speaking, you should always rollover your Roth 401(k) to a Roth IRA. There may be a few exceptions, but that’s the general advice. This is primarily due to the Required Minimum Distribution (RMD) requirement that is placed on Roth 401(k) accounts… unlike a Roth IRA, the owner of a Roth 401(k) is required to take minimum distributions (RMDs) beginning at age 72, just like traditional 401(k) and IRA plans. Therefore, at some… Read More

There is Still Time to Lower Next Year’s Tax Bill

Dec 28 2021

There really is still time to do a few things that can alter the way your tax bill looks next year…if you act quickly. USA Today offered “Ten tips to lower your federal income tax bill before 2021 ends“.

Wait on that bonus
If it is possible, ask to get your year-end bonus next year. That way, it is not part of your income this year. We are often told not to pass along potential issues to the future. At the same time, it is also advisable to live in the moment. When it comes to paying less …

Does it Look Too Good to Be True? Seek Financial Planning Advice

Dec 21 2021

One woman looking to snag a deal and make someone happy found what she thought was an Xbox at an incredible price. It turned out that what she thought was a low-priced Xbox game console was actually an Xbox fridge. This novelty item was made and packaged to look like the game console when was actually an appliance to keep food cold.

It’s an amusing story and it made for a great social media post but as one observer quoted in a Yahoo! article wondered, ‘Isn’t this false advertising?” There are cases where things are advertised in a way …

3 Ways of Dealing Without Recharacterization

Dec 20 2021

As of the passage of the Tax Cuts and Jobs Act of 2017, recharacterization of a Roth IRA conversion is no longer an option. What can you do to now, to simulate the benefit had by recharacterization of a conversion?

It should be noted that regular contributions to a traditional or Roth IRA can still be recharacterized – it’s only a traditional IRA-to-Roth IRA conversion that is disallowed.

If you recall, the primary reason that you would want to recharacterize is if you converted funds and then, by the time you pay the tax, the holdings that you converted have …

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