Another way to fund a Roth

Mega back-door Roth IRA

Last week we discussed how to complete a back-door Roth IRA contribution. For many, this strategy is a slow and boring way to do it. Fortunately, there is another option, which can lead to larger Roth contributions when you earn too much. The ability to use this strategy is relatively new. In September 2014, the IRS released Notice 2014-54 to grant . . . 

Should you buy that house?

Should I buy a house?

The American ideal. Owning a home, a nice pension, and social security. You were set for life. After the 2008 housing crisis the desirability of home ownership changed. Many people lost everything because they bought too much house. Pensions are going extinct. Social security has changes on the horizon. The American ideal isn’t the same . . . 

Financial Independence

Financial Independence

On July 4, 1776, the Declaration of Independence was signed separating the thirteen American colonies as a new nation. The dawn of the United States of America! Since then Independence Day is commonly celebrated with fireworks, parades, and parties. While a group of states celebrate with a bang, finding your personal financial independence can be . . . 

Best Charitable Contribution Strategy in 2017


Now that we understand in tax planning it is all about timing, let’s look at a strategy to maximize your 2017 charitable contribution deduction. Under proposed tax reform, it is clear that itemized deductions will change significantly.  For many people this means using the itemized deduction will go away completely. This does not automatically make . . . 

How to pay less tax

Tax strategy

Most people I know do not like paying taxes. Some do not like paying their fair share while most people are fine paying their fair share of taxes. To those who are not interested in paying their fair share… be careful because that can lead to tax evasion. Tax avoidance is cool. Tax evasion is . . . 

Choosing between a Roth IRA or Traditional IRA

Roth IRA or Traditional IRA

The past two weeks we looked at why a Roth Account is the best and why a Tax-Deferred Account is the best. While the last two articles hit on both 401(k) and IRAs, this week we are focusing on choosing between a Roth IRA or a Traditional IRA. The decision matrix behind these two choices . . . 

When to contribute to tax deferred accounts

Traditional IRA

Last week we discussed when to contribute to a Roth account. This week we will look at the counter part… tax deferred accounts. These are known as Traditional IRA, 401(k), 403(b), SIMPLE IRA, and SEP to name a few popular versions. As you can see, there are many more tax-deferred account options than Roth options. . . . 

Why you should contribute to a Roth account

Roth IRA Contribution

When it comes to saving the question of “where should I save my money” is a popular and important question. Typically the showdown of best account is between the Roth and Pre-Tax (traditional) accounts. While each account has its merits and if you still aren’t sure after reading this plus don’t want to seek professional . . .