Author Archives: Megan Russell

I have difficultly imagining a likely outcome where I would regret a Roth conversion.

If you made a Roth contribution this year, here is a reminder to update your contribution basis records.

While there can be a lot of uncertainty, the conclusion is normally anticlimactic.

This is only a good idea if your financial advisor is covered under the fiduciary duty and is fee-only.

By discounting portfolio returns to only real returns, we have already considered inflation in the planning targets.

This quarter, we saw that in 1-year returns ending April 30, 2023, Developed Freedom Investing had a -2.99% disadvantage, Emerging Market Freedom Investing had a +1.85% advantage, and Overall Freedom Investing had a -0.4% disadvantage.

Last year, thirteen countries made our cut-off. This year, eleven do.

We recommend waiting for the final guidance but being prepared for some sort of required distribution this year.

If you are expecting high inflation, it may be stocks which offer the greatest security against the diminishing dollar.

The incongruity between feeling like we are in a bear market for 61.66% of trading days and actually being in a bear market for only 24.81% of those days unfortunately makes bear markets feel longer than they really are.

This amendment applies to 401(k) plans, 403(b) plans, SIMPLE IRAs, and governmental 457(b) plans.

While our 2022 update saw a number of changes, this year we only have one change.

This past year, our 2022 Gone-Fishing Portfolio beat its benchmarks.

Form ADJ of the 760 lines 8a – 8c are where you report miscellaneous deductions.

Why create tax rules which expire so soon after they are made? The answers are as frustrating as the uncertainty the sunsets create.

How do our current tax brackets compare to historical ones? Are our taxes higher than the past? When was the most expensive time period for the U.S. income tax?

Malcolm Gladwell establishes two opposing types of problems: a strong-link problem and a weak-link problem. Which type of problem can charitable giving solve?

This is a summary of the six steps required to create a well-crafted investment plan.

This amendment raises the ABLE account age to 46 starting in 2026.

Seniors born between 1962 and 1965 will be the first to be able to take advantage of these plus-sized limits.

For those who run a retirement plan, the next step for implementing this change is to email your plan provider.

Hopefully over all this amendment encourages employer plans to offer Roth options, which will be good for taxpayers, even if this additional wealthy discrimination is unwelcome.

In a designated Roth account like a Roth 401(k), each early distribution is treated as coming part from contribution basis and part from earnings.

This update amends the Roth-side of employer retirement plans to behave more like Roth IRAs prior to death.

Here is a review of the performance of Freedom Investing in 2022.

The class will be held April 13 through May 4, 2023 each Thursday from noon to 1:00 PM on Zoom.

This quarter, we saw that in 1-year returns ending December 31, 2022, Developed Freedom Investing had a +0.13% advantage, Emerging Market Freedom Investing had a +0.45% advantage, and Overall Freedom Investing had a +0.77% advantage.

Biotechnology’s low correlation, the very thing that makes you dislike it, is specifically what gives it a place in efficient portfolios.

Tax planning is very different than tax return preparation. The goal of tax preparation is to minimize your tax owed this year. The goal of tax planning is to maximize your after-tax net worth by minimizing your taxes owed over your lifetime.

Later required beginning dates are generally advantageous to seniors, although the complexity surrounding RMD rules is nothing to celebrate.

For those over age 59 1/2, you would need to withdraw all funds attributable to basis before your withdrawal would be sourced from Roth IRA earnings and the age of your Roth IRA would matter for taxation.

While you may think that the account owner needs to stay the same, you can easily change the account owner.

You can tell a lot from the expense ratio of an advisor’s preferred funds.

A reader asks: When you are issued an IRMAA, does the IRMAA stay for one year only or does it stay that way for life?

There are different tables and formulas used to calculate your RMD divisor based on your particular circumstances. This is a calculator for the three most common.

A savings waterfall is a tool to help investors prioritize savings goals and allocate funds appropriately.

We do our best work when we are a lifelong financial advisor to the client.

This 2016 article reminds us that “there is a very simple place to start the process of changing our destiny: Each day notice the things that make you happy and try experiencing more of them.”

Sophisticated tax planning can be effective at any age. However, with great complexity comes great opportunity.

Social Security has a number of flaws, to which these static tax brackets can be added.

What does Schwab do when your Donor Advised Fund has insufficient funds for a recurring grant?

To avoid getting issued an IRMAA, you can proactively tell the SSA of any changes your income has seen in the past two years using a “Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event” form.

Did you know David wrote a Christmas novel? This 2020 book by David John Marotta and Brendon Marotta makes you rethink what is happening in Charles Dickens’ A Christmas Carol.

With the help of Yahoo Finance and a one-cell formula, you barely need to do any work.

This 2014 article changed the way we enjoy our Thanksgiving turkeys. Turkeys have always been an interesting study for economics. Because of the consistency of their demand in America, the price of a Thanksgiving turkey can be used as an indicator of inflation. This article should give you something fun to discuss this year.

The IRS has very limited case law on what constitutes a substantially different fund. However, here is what we do in our own trading.

As the season of holiday shopping approaches, this 2018 article reminds us, “Before you throw your money at various companies, squirrel some savings away for your future self.”

You may be surprised by the amount of subsidies you can receive.

A wishlist is a force of thrift both for you to defer your consumption and for your family and friends to ensure that all the value of their gift makes it to your heart.

Twelve-month inflation for all items ending in September 2022 has been 8.2%, so it is not surprising that the 2022 contribution limits have seen more increases than normal.