Category Archives: Financial Planning

Practical Planning: Understanding 401(k) Loans

A recent survey of millennials has been making the rounds on news sites, with particular attention focused on 401(k) loans used to finance home purchases. The survey found that two in ten Millennials who plan to buy a home expect to dip into retirement accounts to fund their purchase and that three in ten who are currently homeowners have already done so.

Although 401(k) loans have some advantages, there are also several important factors to keep in mind before borrowing from your future. Read more »

The Estate of Anthony Bourdain: Probate = Public

The recent tragic death of celebrity chef Anthony Bourdain was followed by a number of news stories that have become commonplace in this day and age of internet “reporting” on celebrities stories about the celebrity’s net worth based on documents filed in the probate court and not thoroughly researched. In Mr. Bourdain’s case, the headlines noted that the chef, whose net worth was recently estimated to be over $15 million, was only worth $1.2 million when he died.  Read more »

The Marital Penalty in the Tax Code

The U.S. Tax Code has included subtle penalties (and occasional benefits) for married couples for as long as there have been tax tables, phase-outs, and deductions — sometimes two people are better off filing as separate taxpayers, while sometimes couples get a little bit of a break when they tie the knot. The penalties are hidden in various places throughout the tax code and are most easily spotted when looking at the tax brackets a married couple filing jointly uses versus the same two incomes applied to the single filing table.  Read more »

What Does the Baby Boom Mean for Your Future?

One of the more frustrating aspects of the political climate in 2018 is that no one seems to be comfortable discussing the elephant in the room: Americans are living longer and having fewer babies. As a result, the commitment the United States has made to healthcare and retirement benefits for baby boomers is likely to lead to substantially higher taxes and/or significant cuts to entitlement programs in the United States over the next few decades. Read more »

The Power of Compounding

Albert Einstein once (allegedly) called compounding interest the most powerful force in the universe. While claims that the famous scientist uttered these words are dubious at best, what is not in question is that compounding interest is an incredibly powerful tool that all investors can leverage. Read more »

Building Walls of Financial Protection

There has been a lot of talk about building walls lately. Regardless of whether you are in favor of building physical ones, you ought to consider building some legal and financial ones, as we are each surrounded by potential liability threats. While the odds of any of these liability threats becoming a liability claim are incredibly low (the odds are about 1 in 2,000 that someone will have a serious slip and fall in the shower, for example), the impact these events have when they do happen can be profound (especially if that person fell in a shower at an apartment that you rented to them). Properly constructed walls can shield assets and provide a level of protection from claims. Read more »

Practical Planning: Review Your Withholdings for 2018

Even though we are knee-deep in the 2017 tax season, it’s not too early to start thinking about 2018 taxes. Given tax reforms in the Tax Cuts and Jobs Act, wage earners should be sure to review and, if necessary, adjust their tax withholding. You can start this process using the IRS 2018 Withholding Calculator to do a “paycheck checkup” and help you determine whether your tax withholdings are appropriate. Read more »