FINANCIaL

FIELd NOTES

Tax Strategy Alex Voorhees Tax Strategy Alex Voorhees

Tax-Wise Giving Strategies, Part 1 – Bunching Gifts & Donor-Advised Funds

Most people begin to think about charitable giving strategies at the end of the year. However, I think January is the time to plan for the year ahead because there are many strategies that if implemented would change the way you give throughout the year.

Tax savings is not the reason we give to the charities we value. However, if you are planning to give, let’s not leave Uncle Sam a tip! Bunching gifts is a great way to do that…

Read More
Tax Strategy, Personal Finance Alex Voorhees Tax Strategy, Personal Finance Alex Voorhees

Is Saving In a 529 Plan a Mistake?

529 plans have long been the go-to for college savings. And for good reason - all the growth is tax-free if used for qualified educational expenses. But in recent years they have come under question as parents and grandparents wonder if all that college savings is for waste.

After all, many expect the education system to have some type of reform as the cost of college has ballooned over the past 40 years…

Read More
Tax Strategy, Investment Strategy Alex Voorhees Tax Strategy, Investment Strategy Alex Voorhees

How to Pay 0% Capital Gains Tax

When you sell an investment for a gain outside of a retirement account, you typically pay “capital gains tax.” For example, if you bought an index fund for $10,000 and sold it for $15,000, you would have to report the $5,000 gain as income on your tax return.

There are only 3 main federal tax brackets for capital gains. You are either taxed at 20%, 15%, or even 0%…

Read More
Tax Strategy, Retirement Planning Alex Voorhees Tax Strategy, Retirement Planning Alex Voorhees

Roth Conversion Ladder Strategy

Roth conversions are the process of transferring money from tax-deferred accounts, such as 401ks or IRAs, to tax-free accounts like Roth 401ks or Roth IRAs.

When you move money from one account to the other, you generally pay taxes on the full amount converted. The money then grows tax-free from there on out.  

One strategy to consider is to implement small Roth conversions, a little at a time, over multiple years…

Read More