If you underpay estimated taxes, you may be subject to penalty. IRS Form 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts is the form that you use to report this.With proper planning, all penalties can be avoided, but in order to do this you need to understand the rules of Estimated vs Withholding […]
Just because you ‘can’ doesn’t mean you are allowed to
Working in the tax and finance space, I’ve noticed a recurring theme. People tend to put trust in the fact that because they ‘can’ do something, it is allowed. Some examples: S Corp Self Employed Health InsuranceA self employed person who operates an S Corp deducts their health insurance. Tax software allows you to do it, but […]
Social Security Benefits Chart
In 2017 the Social Security salary limit increased from $118,500 to $127,200. Social Security is taxed to the Employee and the Employer at a rate of 6.2% up to this cap. Wages over this amount are not subject to this tax. Some BackgroundThe cap is just one way that the fund balances the need for […]
Finally fixing my asset allocation
You may have heard the classic story of the Shoemaker’s children having no shoes, or the phase Physician, heal thyself. But who is wurs shod, than the shoemakers wyfe, With shops full of newe shapen shoes all hir lyfe? [1546 J. Heywood Dialogue of Proverbs i. xi. E1V]It is a very real phenomenon that dedicated professionals are […]
Should you have a Roth 401(k) or Traditional 401(k)?
I saw this topic today over at Nerdwallet, and wanted to share some insight on the matter. Note the standard disclaimer that everyone is unique, and to pay a professional if you want to do anything involving your money.In order to understand this decision, you need to first understand the basic difference between a Roth and […]
Smarter questions to ask your financial advisor
Last night, on Twitter, I suggested a few questions that you should ask your Financial Advisor, let’s explore them a bit more closely here, along with a few more pearlers.Note that this is an advanced series of questions, most other lists focus on just the fiduciary vs suitability standard, and encourage people towards a fee only […]
Guiding your way through Long Term Care
Long Term Care refers to the period of time in which loved ones will require additional assistance to complete the routines of daily living. Importantly, it isn’t just about money, or finding a facility that will be able to accommodate them in their retirement, but that is a part of it. This post will explore […]
Intentionally disqualifying Employee Stock Purchase Plans
Employee stock purchase plans (ESPPs) are, in short, amazing. If you have access to one and your are not maximising it, you should take a second look. They come with one giant downside, which is mitigated somewhat by intentionally disqualifying them. In simple terms, this means pulling out your money as fast as possible.The downside […]
Big Picture, Little Picture #Brexit
So the ‘Brexit’ vote happened. The markets weren’t expecting it, and they are about to show their disappointment. Big picture, the actual leaving of the EU might be a good thing for Britain, but to a US based investor, that doesn’t mean much.Markets are driven by speculation, and people and organizations are able to move […]
Should you use a personal credit card for business purchases?
Conventional advice is to put business purchases onto a business credit card. I myself have done this for many years. However, we might want to explore the ‘why’ of that, and perhaps make some adjustments.The logic behind using a business credit card is that it helps in two ways: Your expenses are neat, and reconciling […]