Since “money doesn’t grow on trees”, we all need to develop a specific plan for accumulating the funds needed to live the lifestyle we choose. How and where we save for each goal needs to be appropriate based on the timeline. For example, we need to be more conservative with money we need short-term access to such as an emergency fund or upcoming purchases. Conversely, we can invest more aggressively for long-term goals such as retirement or a dream trip…
2020 HSA Limits Increase
The IRS has announced that Health Savings Account (HSA) contribution limits will rise in 2020 to $3,550 for individual plans and $7,100 for family plans (up from $3,500 and $7,000 respectively for 2019). There is no change to the allowable $1,000 annual catch-up limit for those age 55 or older. Additionally, the IRS has raised the deductible requirements for a health insurance plan to qualify as a HDHP (High Deductible Health Plan) making it HSA eligible in a given year….
Paying Down Mortgage Debt
I’m a huge fan of paying down debt. Nothing feels as free as knowing that you don’t owe a penny to anyone! Given the current investment environment and the 2018 tax law changes, paying off your mortgage (or substantially paying it down) can make a lot of investment sense as well. Assume you are worried about future market returns and are holding a large amount of cash in your investment account. What’s the best rate of return you can earn…
Stacking Charitable Contributions and Medical Expenses to Reduce Taxes
The Tax Cuts and Jobs Act of 2017 which went into effect 2018 is probably best known for lowering the marginal federal tax rates on earned income. What is less talked about are several other changes included in this legislation that could have a significant impact on the way Americans utilize Itemized Deductions. By making multiple years of charitable contributions or planning several medical procedures in a single calendar year (stacking), some households may be able to increase their Itemized…
Home Equity Loan Interest Tax Deduction Changes
Using a home equity loan or home equity line of credit (HELOC) are popular ways for individuals to borrow, often at lower interest rates than would be available on unsecured loans. This month we wanted to take time to highlight a change in the tax treatment of home equity interest that was included as part of the Tax Cuts and Jobs Act of 2017 (last year’s income tax changes). In 2017 and prior, the interest paid on home equity…
Direct Student Loans Interest
Each year, thousands of students and parents rely on Federal Direct loans to assist them with paying for higher education costs. The interest rates on these loans are fixed for the life of the loan but the interest rate on newly issued loans adjusts annually based upon the yield of the last 10-year Treasury auction in May. On May 9, 2018 the 10-year Treasury note had a yield of 2.995% which is up from 2.40% from a year ago. Use…
Welcome to our new website and blog!
In the beginning of 2015, we decided to question everything we were doing to determine how we could further evolve. The industry is almost unrecognizable compared to how it was when I first started in this profession almost three decades ago. So many more tools and options have become available for delivering excellent services to clients while at the same time, providing a very satisfying career for those of us in the firm. After a year and a half of…