California has long been called the state that previews where America goes next. Stricter car emissions standards started in California in the 1960s and eventually shaped what every American can buy on a dealer lot. The push for a $15 minimum wage that began in California in 2016 became national Democratic policy within a few years. Things start in Sacramento and migrate east. If that pattern holds, America is about to experience the biggest change in how we tax citizens…
Category: Taxes
The $15,500 Mistake: Why You Shouldn’t Leave Your HSA to Your Kids
Your HSA might seem like the perfect inheritance for your kids, but there’s a nasty tax surprise waiting for them. Here’s what you probably don’t know: When you leave your HSA to anyone except your spouse, it stops being an HSA the moment you die. That entire balance becomes taxable income to your non-spouse beneficiary, and the account turns into a taxable investment account. Say you have $50,000 in your HSA, $50,000 in a Roth IRA, and your child makes…
Trump’s New Tax Law 2025: Key Provisions That Could Affect Your Finances
President Trump signed the “One Big Beautiful Bill Act” into law on July 4, 2025. The law had a number of provisions, with some of them not getting the attention they deserve. In this post, I’ll breakdown the key provisions that could impact your taxes and your finances. Tax Brackets Made Permanent The legislation permanently extends the seven-bracket tax structure established by the 2017 Tax Cuts and Jobs Act, with rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%….
Why I’m More Certain Than Ever That Taxes Will Rise…Eventually
I wrote The Retirement Tax Bomb back in 2019 because I believed taxes were bound to rise—and now, I’m more convinced than ever that something drastic will have to change. At the time, I hoped our elected officials would take action before we reached a true crisis point. But here we are, years later, and meaningful reform still hasn’t happened. Frankly, I don’t see the political will appearing anytime soon. That’s the unfortunate part. The fortunate part—for those paying attention—is…
Using The ‘Gap Years’ Effectively for Retirement Tax Planning
Did you know you could save thousands of dollars in taxes just by planning your retirement timeline strategically? For many retirees, the years between leaving the workforce and beginning major retirement income sources—like Social Security or Required Minimum Distributions (RMDs)—offer a unique and often overlooked opportunity: the “gap years.” These years can be a golden window for smart tax planning that lowers your lifetime tax burden and increases long-term financial security. In this article, we’ll break down what gap years…
5 Facts and 3 Myths About The Tax Cuts and Jobs Act (ie, The Trump Tax Cuts)
The Tax Cuts and Jobs Act (TCJA, also known as the Trump Tax Cuts) was signed into law in December of 2017 by President Trump. Because of the way that tax law is structured (it is usually not permanent), it leads to frequent conversations about what to do with this or that aspect of tax laws. I expect that this year will be no different as our politicians decide what to do with it. While it’s likely that Republicans (who…
Huge Tax Bills Caused By Poor Asset Location
Last week we talked about the Essentials of Asset Location; basically, what investments we should put in different account types. In today’s episode, we go through a real life example of how very poor asset location ended up costing investors thousands (and in one case hundreds of thousands) on their tax bill.
Tune in to learn from their mistake and not end up with a nasty tax surprise.
3 Charitable Strategies For Retirees in 2021
If you’re looking for ways to give money to charity in a tax efficient way, this episode is for you. It’s based on a great article I read by Christine Benz over at Morningstar, and it highlights three ways you can give to charity this year, including one really easy one that anyone can take advantage of.
5 Reasons NOT To Do A Roth Conversion
While Roth Conversions can be a great financial planning tool, they are not suitable for everyone. And there may be times when you should avoid them altogether. In today’s episode, I discuss 5 reasons why you should not do a Roth Conversion. Make sure to tune in so that you can be as smart with your taxes as possible, and set yourself up for the best retirement possible.
Should You Do A Giant Roth Conversion?
I received a great question from someone recently: Should he do a giant (and I mean giant) Roth Conversion in light of potential tax increases as well as future legislation potentially ending Roth Conversions?
Tune in to listen to my answer as well as 5 things to think about if you want to make a big Roth Conversion.