Thanks to technology the world is changing quickly.    Technology allows us to do more, faster and often better.  However, our infrastructure* has not kept up.   Life continues to  get more difficult for those with fewer resources.   According to Pew Research Center, nearly than 3 in 10 young people are neither employed or in school.

The Biden Administration is proposing to pay for the American Jobs Plan with the Made in America Tax Plan.  This includes increasing corporate tax, closing tax loopholes, and making our American companies more accountable.  Is this a new source of a tax revenue for the US?  Not really. 

As you can see from the chart above, taxes for corporations have trended downward for the past 70ish years.  Government spending has not supported investment in infrastructure for a very long time.  We can see it in our roads and bridges, transportation systems, and technology.

*Infrastructure is defined by Oxford Dictionary as “the basic physical and organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise. Infrastructure investment, as defined above, is just one component of the proposed American Jobs Plan.  For purposes of the Plan the term infrastructure is used more broadly to encompass economic, technological and social structures.  Read more

​In-er-tia, a tendency to do nothing or remain unchanged. (The Oxford Dictionary)

“There is no time like the present.”
“Just do it”
“Never put off til tomorrow, what you can do today”

Procrastination, the bane of our existence.  Yes, there are more serious things to worry about, but your financial health is pretty important. In our chairs we see a great deal of financial/investor inertia.  

What causes financial inertia? 

​​In January we wrote about tax-advantaged ways to save money.  This month we are sharing other ways to save. In particular, implementing financial actions that can have an even greater impact on a secure financial future.  Great companies are known for their execution around process.  Strong household balance sheets enjoy the same attention to detail.  See how!

​2021 is finally here!  We all tend to feel like we are starting with a clean slate as we kick off the new year.   It feels like a new beginning...

From a financial perspective, it is a great time to take stock of your family’s current savings plan and ask yourself if there is room to save more or if you are missing opportunities to save in a  more tax-efficient way.  Here are a few of our favorite tips that are often overlooked.

​​​2020 provides unique year-end tax planning opportunities for several reasons, including lower tax rates, the Secure Act passed in late 2019, and the Cares Act passed earlier this year. While we expect there to be tax code changes down the road as a result of a new presidency and legislature, it is important to stay focused on current tax planning opportunities with an eye to the future.    
Potential opportunities include

Income Bracket Management:  

• For retirees, this year, knowing where to save, as well as how and from which account to pull funds can help minimize your tax liability longer-term and maximize the benefit of lower rates. 

 Type of accounts in which to contribute:

•  Tax-deferred, tax-free, or taxable accounts.

Partial Roth Conversions:

• Allow you to control when you pay income tax on your retirement accounts and potentially take advantage of lower tax rates and brackets.

Required Minimum Distributions:

• The Secure Act increased the RMD age from 70 ½  to 72
• The Cares Act allows for skipping an RMD in 2020

Charitable Giving:

• New tax incentives for charitable giving in 2020 came in March with the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The law gives donors who plan to take the standard deduction the option to claim an above-the-line deduction of up to $300 for cash contributions to operating charities. The CARES Act also gives donors who will itemize deductions an option to elect a 100% of AGI deduction limit for cash donations, and deduction amounts above this limit may be carried over for up to five years. With both options, the cash donations must be made directly to operating charities and cannot go to donor-advised funds, supporting organizations, or private foundations.

We are including our 2020 End of Year Checklist for your review.  Please feel free to reach out to us with any questions.

​Last month we wrote about essential planning documents for our young adults.  This month it is all about you!  Living through a third surge of Covid-19 is reason enough to get your house in order.

Ideally, you have executed a complete set of estate planning documents, including a will, revocable trusts, health care power-of-attorney, advance directive, and durable power-of-attorney.  If your estate is larger and/or more complex, planning may extend beyond these documents.

​Many of our clients have college age/young adult children over 18.  Even though that might not be the milestone they are most excited about (like the one that comes 3 years later!), it is a major milestone in the eyes of the law.  At that point our government considers them adults.  They can now:

+Vote
+Get married
+Join the Military (men have to register for selective service)
+Manage their own money
+Serve on a jury
+Sign a contract


On the other hand, parents are no longer able to:

-Access their medical information
-Make health care decisions
-Access their financial accounts (unless you have joint ownership)
-Access their school records (even though you may be paying)

​It is easy to get caught up in life and lose sight of the details.   We live busy lives.  Whether you are raising a family or approaching retirement, one can unintentionally veer off-track.  Often it is our financial health that can suffer. 

When the unexpected happens (which it often does) the impact can feel devastating.  Having a strong balance sheet can soften the blow.  Our personal balance sheet is a barometer of our financial strength and it also provides very important clues about risk and financial vulnerability.  

​​We are passionate about helping our clients grow and preserve their assets.  In the course of our financial planning* for clients we are noticing an absence of umbrella policies, particularly for those who fall into the affluent or business owner buckets.  Hence we have prepared a short summary about umbrella policies including what it is, how to determine your coverage needs and why it is important to your financial security. 

​One of the biggest milestones in a person’s life is the decision to start a family (or not).  With the arrival of that cute bundle of joy comes a whole host of other experiences and adventures.  But in the back of almost every parent’s mind is ‘how am I going to save for college’?  And while it usually feels like it is an eternity away - we all know the saying ‘the days drag and the years fly’.  Before you know it they are taking SATs and doing college tours.  There is good reason that this concern is one of the many, many issues we worry about as parents; college can be extremely expensive, and the costs continue to increase dramatically over time.