U.S. Income Tax History: How Tax Rates and Revenue Have Changed Since 1862
The history of income tax in America reveals a fascinating story of economic policy, war financing, and evolving government revenue strategies. From President Lincoln’s first income tax in 1862 to the Tax Cuts and Jobs Act of 2017, federal tax rates have ranged from as low as 1% to as high as 94%. Understanding this […]
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 […]
A History of the Individual Income Tax in America
Key Takeaways: Individual income taxes are the largest source of revenue for the government The 16th Amendment gave Congress “the power to lay and collect taxes on incomes” History has shown that tax revenues increase when rates are cut Taxes have been part of our country’s history from the very beginning – No […]
Taxes in Retirement – Case Studies
Key Takeaways: Your sources of income will change, but you will still owe taxes in retirement. In general, your principal (or “cost basis”) will be returned to you tax-free. A diversified portfolio protects in down markets and provides flexibility when planning for taxes. When you’ve spent your adult life working and saving, retirement […]
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 […]
When Too Much Tax Deferral Becomes Counterproductive
Click here to watch video in new window. 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 […]
Tax Management in Bull Markets
How do we manage accounts when everything is up? With cooperative markets, many investors have accumulated substantial capital gains in their investment accounts. We analyze the trade-off between ideal allocation & paying tax to achieve it. In general, we advocate paying tax along the way to avoid over-concentration. When I was growing up, my granddad […]
Upcoming Child Tax Credit Checks: Not Free Money
Max Child Tax Credit now $3,600/child under 6; $3,000 ages 6-17 Even high-income families will receive 50% advances on these credits Advance payments can increase your tax bill next year, all else equal If you take a vacation in the middle of this month, you may come home to a surprise check in the mail. […]
WATCH: Charitable Giving Webinar with Lisa Adkins of BGCF and Andy Reynolds
In this episode, Ballast COO Andy Reynolds sits down with Lisa Adkins, CEO of the Blue Grass Community Foundation, to explore how charitable giving can become a powerful tool for tax planning, legacy building, and family values. Lisa shares current trends in philanthropy, including the growing popularity of donor-advised funds, charitable “bunching” strategies, and […]
Beyond the Luxury Car: Avoiding the Costliest Financial Mistakes in Medicine
Physicians spend years mastering medicine, but many receive little formal education on personal finance. As a result, some of the most common physician financial mistakes occur during major career transitions from becoming an attending physician to preparing for retirement. The good news is that most of these mistakes are predictable and avoidable with thoughtful planning. […]
Physicians, Treat Yourself Like a Professional Athlete
Medical professionals, particularly surgeons, should think about their careers much like professional athletes think about theirs. Both operate in environments where performance matters, the margin for error is thin, and the demands on the body and mind are relentless. A professional athlete understands that their earning years are finite and that one injury, one loss […]
What Are Trump Accounts? Understanding the Proposed 530A Investment Account for Children
With the recent attention surrounding Trump Accounts, we wanted to provide some clarity on how these accounts are structured and where they may or may not fit within a broader financial plan. For those considering ways to start saving and investing for a child early, a Trump Account, formally referred to as a 530A account, […]