The Investor Taxation Lifecycle
We are not CPAs nor are we tax preparers, but a great deal of our time is spent working with clients and their professionals honing a financial plan that is tax efficient. We advise our clients to hire a CPA with whom we can work together to manage their financial plans. The financial plan and […]
Evaluation of a Job Offer
Key Takeaways – The following considerations must be made when reviewing an opportunity to take a new job or leave a W2 salary to start a business. Nearly 93% of Americans earn income outside their primary job1. What are all the aspects of my compensation package? This includes salary and other benefits such as […]
Employee Stock Ownership & Options
Key Takeaways: Company stock plans & stock options have many customizable details Employees should understand their stock plan’s features & tax consequences With correct utilization, employee stock can meaningfully increase compensation When evaluating a job offer, it is best not to focus only on salary or an hourly wage. We have the […]
Cash Flow Autopilot
The Ballast Atheneum has focused on many aspects of cash flow planning, including budgeting, retirement savings vs. paying down debt, costs of vehicle ownership, and cash flow planning vs. long-term care. This article shares a case study that we try to create for working clients. We have implemented this Retirement Autopilot for many people and […]
Should Business Owners Raise Their Salary to Earn More Social Security?
Key Takeaways: Pass-through entity owners can choose to take profits as wages or distributions Increasing owner salary raises payroll tax liability but also increases future Social Security benefits Older owners and owners with non-working spouses and/or incomplete earnings records stand to benefit the most from increasing their salaries Lower taxes are better, […]
Alternative Uses of Social Security Income
Key Takeaways: Many unique situations could justify taking Social Security earlier. The psychological benefits of a new income stream can relieve anxiety around a new planning strategy. To take Social Security before age 70, the financial and non-financial benefits of claiming Social Security early should outweigh the benefits of deferral. If you […]
When Too Much Tax Deferral Becomes Counterproductive
Most of us have been told from early on in our careers to defer as much income as possible to ensure we’ll be properly prepared for retirement. While not bad advice, most of these strategies involve only qualified deferrals, meaning all income tax gets punted until the distribution phase. Now, if you end up in […]
Student Loan Forgiveness Best Practices
Key Takeaways: Federal student debt cancellation up to $10,000 ($20,000 for Pell grant recipients) Cancellation limited by income ($125,000 single, $250,000 for married couples) Limited PSLF Waiver ends October 31, 2022; review your eligibility This past Wednesday, the President announced a student debt cancellation plan. Unfortunately for borrowers hopeful to log in to their […]
Most Couples Shouldn’t BOTH Delay Social Security
Key Takeaways: Two-income households have more complex Social Security timing decisions The higher-earning spouse generally benefits from delaying payments The lower-earning spouse generally benefits from starting payments early We’ve written a previous breakdown on the Social Security timing decision. Briefly, between ages 62-70, if you delay taking income, your monthly benefit grows. We discussed that […]
Tax Savings on Company Stock
If you work for a publicly traded company, chances are you can own company stock inside your 401(k) retirement plan. We’ve seen many workers nearing retirement who have accumulated substantial shares of company stock. These workers are often unaware that they have an option with the tax treatment of these shares that could potentially result […]
Putting a Value on Your Social Security Benefits
Key Takeaways: Most retirees don’t think of Social Security as an asset and therefore exclude it from their balance sheet. The present value of Social Security payments over an average life expectancy can easily be several hundred thousand dollars. We can’t predict what will happen with Social Security down the road, so it is important […]
Evaluating the Benefits of Flex Spending and Health Savings Accounts
Most employees face countless and confounding options each year when they select their benefits. There is no unanimous choice in any benefit area, it really comes down to what the employee needs and will benefit from most, particularly long-term. Flex spending accounts and health savings accounts are very common options these days, particularly as employers […]