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tax law changes

Tax Proposals: Big Changes to Come

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On September 13, the House of Representatives Ways and Means Committee released a set of proposals as part of a $3.5 trillion spending and tax bill that Democrats hope to pass in the fall. If passed, the legislation would advance many of President Biden’s economic and social policies. Many of the details will likely change as the bill makes its way through a series of deliberations and votes. But the initial draft provides a good deal of insight about what we can expect. Below is a summary of the proposed changes and some key take-aways for clients: Income and Investments Increases the top individual tax bracket to…
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executive order small business

Brief Update: New Executive Order May Help Small Businesses

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Last week, President Biden announced an executive order aimed at accelerating the country’s path out of the pandemic. There are three elements in the “Protecting Our Economic Recovery” portion of the plan, each of which is expected to be fleshed out more in the future. The most notable change is an increase in the maximum amount of funding small businesses can borrow through the COVID Economic Injury Disaster Loan (EIDL) program, from $500,000 to $2 million. This program provides long-term loans from the Small Business Administration at low interest rates – 3.75% fixed for businesses; 2.75% for private nonprofits –…
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family finances

What Everyone Should Know About Their Family Finances

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I work with many clients who have lost a spouse, gone through a divorce, or are wondering what they should do if something happens to their significant other who has been managing the money and finances. We also work with many clients who find themselves in a position of having to manage their parent’s finances. No matter the situation, it is important for each person to be involved in the family finances – knowing where things are, who to call, and what to do in case an unforeseen event occurs. Maintaining transparency and having candid conversations about finances can also…
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backdoor roth contribution

The Benefits of a Backdoor Roth Contribution

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The most popular retirement account of the past decade is the Roth IRA. It offers tax-free growth, tax-free withdrawals after age 59.5, and no minimum distribution requirements. Unlike traditional IRAs, Roths are funded with after-tax dollars, which means there is no deduction for a contribution. Evaluating whether to contribute to a pre-tax or Roth IRA is a common exercise. Many are drawn to the upfront benefit because of the tax savings and/or they expect their rate will decline in retirement. However, if your time horizon is decades, Roth savers are much more likely to end up with more after-tax money.…
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Solo 401k

Why the Self-Employed Should Consider a Solo 401k

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Self-employed individuals have multiple options to save for retirement and invest in a tax-efficient manner. One of those options, the Solo 401(k), can be particularly attractive to entrepreneurs running their own business, including those with both a 9-to-5 corporate employer and a “side-hustle” that earns them additional income. What is a Solo 401(k)? A Solo 401(k) plan, also commonly referred to as a solo-k or uni-k, is just like any other 401(k) plan, but is designed to cover a self-employed person with no employees other than his or her spouse. Because it covers only one employee, there is no burdensome…
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roth ira

What is a Mega Backdoor Roth IRA?

By Blog
Most people have heard of Roth IRAs. Those who qualify typically contribute and those who do not qualify can sometimes find a way to do so, as we explain here. In either case, you can do MORE. Take a Step Back and Understand Plan Types and Limits 2021 Retirement Plan Limits Account Type 2021 Limits IRA $6,000 50+ Catch-Up Limit $1,000 Simple IRA $13,500 50+ Catch-Up Limit $3,000 SEP IRA $58,000 401(k) $19,500 50+ Catch-Up Limit $6,500 Profit Sharing Plan $58,000 Defined Benefit Plan (Annual Limit) $230,000 Depending on your current occupational status and business structure, you may or may…
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Thinking of Engagement? 15 Financial Questions to Ask Before Getting Married

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When two people who are both professionals consider getting engaged and married, it is imperative that they first consider their finances. Some entrepreneurs, business owners, and high earners (or their parents) will want a pre-nuptial agreement. Whether you are in a position of wealth or just starting out, there are many questions that should be discussed before walking down the aisle. The first set of questions involves current finances: How much do each of you make? How much have each of you saved? Do you both have retirement plans? Are you contributing to 401(k) plans at work? Are each of…
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risk tolerance

Understanding Risk Tolerance

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There is always something to be uncertain about and one does not have to look very hard to find negative headlines. This is part of why investing can seem so difficult, even in periods of relative calm. It becomes even more challenging during times of elevated turmoil. Having a well thought out investment plan and portfolio that aligns with your goals can help you stay the course. Part of this preparation includes understanding and accepting that a certain level of risk must be taken. Those who have the discipline to stick with their plan tend to be the most successful…
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summer reading list

Summer Reading List 2021

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Now that school is out and a holiday weekend is just around the corner, some may be looking to brush up on their summer reading. This set of recommendations comes from three of our advisors who found these books to be enjoyable, edifying, and well worth the read. Enjoy! “Uncharted – How to Navigate the Future” by Margaret Heffernan Recommended by Laura Barry, CFP® Uncharted: How to Navigate the Future is a great read for those who experience worry about their future, especially for those who constantly seek certainty. In her book, former CEO and TED speaker Margaret Heffernan gives…
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divorce

Why You Shouldn’t Wait Until After Your Divorce to Meet with a Financial Advisor

By Blog
You are divorcing. You have a million things to think and worry about. Your divorce professional (whether it be a matrimonial attorney, mediator, or collaborative lawyer) is asking for all kinds of information and documentation. You are worried about your kids and custody. You are worried about whether you will stay in your home. You are emotionally raw and trying to hold it all together. The last thing you want to think about is your financial plan. But that is one of the most important aspects of divorce. Aside from custody, divorce is often about the money. Going through a…
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