Let me be clear – I don’t think tax rates will go down soon. But, I think it’s an important exercise to consider the other side of your beliefs. What if tax rates go down? I feel confident tax rates will go higher in my lifetime, but what if they don’t? How would that impact the … Read more
Many people like to complain about taxes, but how are your tax dollars spent? You’ll hear too much is spent on defense. Or, you’ll hear too much is spent on social safety net programs. Social Security is going bankrupt. We need to reduce our debt. We pay too much in interest. Eventually, you’ll start to … Read more
One of the most common types of questions I receive revolves around how different types of accounts are taxed. With a patchwork of legislation over the years, our tax code is complex. You receive a tax deduction when you contribute to certain accounts. You don’t receive it in others, and future distributions are tax-free. Meanwhile, … Read more
There is talk about rising tax rates. While most of it has focused on people earning more than $400,000, it’s important to know how to prepare for rising tax rates in case it ever affects you. There are many ways to prepare for rising tax rates: selecting which retirement accounts to make contributions to, contributing … Read more
I know, I know. You must be thinking, “Taxes! Two weeks in a row?” Yes, two weeks in a row. You should know how to read your tax return. I understand taxes are boring for most people, and trying to understand the tax code is a little like trying to do your own open-heart surgery … Read more
Do you know how much you pay in taxes? When is the last time you looked at your pay stub? Do you understand it? If you have not looked at your pay stub recently, tax season is a good time to review it. Most people only look at their net pay, but understanding where your money … Read more
It’s that time of year – tax season. You start hearing about people receiving refunds, owing money, and saying things like, “I should really start working on my tax return.” Nobody likes filing taxes. In the US, we have a plethora of rules and records we need to track to properly file our taxes. Our … Read more
I talked in the past about how to spend money to increase happiness, but you can also increase happiness by giving to charity. Studies have shown giving, instead of spending on yourself, can boost your happiness. Although you can increase your happiness by giving to friends or family, I want to spend time talking about … Read more
A Health Savings Accounts, or HSA, is a powerful account to save for medical expenses, but many people use it in a way that is less than optimal. Tip 1: Understand the Powerful Tax Advantage of an HSA What is an HSA? An HSA is a triple tax advantaged account for people who have qualifying … Read more