“Should I contribute to a Roth IRA? How can I contribute to a Roth IRA?” Before answering those questions, we need to define what Roth assets are. The difference between a Roth IRA and traditional IRA is that Roth contributions are made with after-tax assets, and any growth on assets inside the Roth is tax-free. … Continued
The carefree days of summer camp for my children seem like long ago. My children, now teenagers, have summer jobs—and earned income—so the conversations around the dinner table range from saving, investing, and/or spending their earnings and taxes. TAXES, “gulp”, what? Many parents assume that children are exempt from tax obligations, but this is not … Continued
The start of a new year is a great time to revisit on your existing financial plan and to determine if there are opportunities to make changes. For example, with the rise in the S&P 500 over the last couple of years, you may find yourself in a position to be more generous with your … Continued
In many parts of the country—including the Bay Area—house prices have increased dramatically over the past few decades, leading to significant wealth accumulation. Many people have been nicely rewarded by simply owning a house for a long time while often raising a family and staying put in the same neighborhood and local schools. But at … Continued
“What’s the best way to use our money to maximize our happiness?” Harvard Business School professor, Dr. Michael Norton, sought to answer this question in a 2013 research study and found “people who spend money on others report greater happiness.”1 When it comes to our children, small gifts over time can make a significant impact. … Continued
In an age where philanthropy plays a crucial role in supporting communities, understanding the nuances of charitable giving is essential. Qualified charitable distributions (QCDs) offer unique tax advantages, making them an attractive option for many donors. As we move into the holidays and the season of giving, it’s a great time to explore the benefits … Continued
While you are probably familiar with the term cost basis, it is not likely something you think about very often. In fact, you may only think about cost basis information when asked for it by your Sand Hill Wealth Manager or CPA. Cost basis—also known as tax basis—is necessary to determine the capital gain or … Continued
If you’re a fan of Albert Brooks like I am, you’ve no doubt seen the 1985 movie classic Lost in America in which the protagonists sell all their belongings and purchase a Winnebago where they plan to live out the rest of their post-retirement days traveling the open road and living off their nest egg. … Continued
Donor-advised funds (DAF) have become increasingly popular in recent years for individuals supporting various ongoing philanthropic causes, especially given their ease of achieving a potentially large tax-deductible contribution in any one given year but then allowing for the payout of possibly many different underlying charitable donations to occur over time (see “Hassle–Free Philanthropy”). For example, … Continued
A donor-advised fund (DAF) is a charitable giving vehicle administered by a public charity that allows a donor to contribute, receive an immediate tax deduction, and recommend grants to charitable 501(c)3 organizations from the fund over time. There are several considerations when using a DAF that will help you make the most of their benefits. … Continued