Financial Planning

Year-End Tax Savings

This week, Angela discusses five tax savings strategies to consider before the end of 2025. She emphasizes the importance of planning and understanding tax implications for financial success. The topics include charitable gifting, itemized deductions, investment and retirement portfolios, business equipment purchases, and seeking professional advice.
Key Takeaways 💡
Charitable Gifting Strategies: Due to upcoming changes in 2026, individuals in higher tax brackets should consider accelerating charitable gifts to maximize tax benefits this year. Using a donor-advised fund allows for immediate tax deductions while distributing the funds to charities later. Gifting appreciated stocks or securities to a donor-advised fund offers a double benefit: a charitable deduction and avoidance of capital gains taxes.
Itemized Deduction Changes: State and local tax (SALT) deductions have increased to $40,000 this year, but limitations will apply next year for those in higher income tax brackets. Prepaying state and local taxes this year can help maximize deductions before the new limitations take effect. Consider prepaying property taxes or purchasing a vehicle this year to take advantage of the current deduction rules.
Investment Portfolio Tax Savings: It's important to understand the tax implications of different investment accounts, such as taxable, IRA, and Roth accounts, to avoid future tax burdens. Tax loss harvesting within investment portfolios can offset gains and reduce overall tax liability. Actively managing taxable portfolios to maximize returns, minimize fees, and optimize tax efficiency is crucial.
Retirement Savings and HSAs: Maximizing retirement savings contributions and utilizing vehicles like traditional and Roth IRAs can provide tax benefits and diversify retirement income. Contributing to a Health Savings Account (HSA) offers a triple tax advantage: tax deduction on contributions, tax-free growth, and tax-free withdrawals for qualified healthcare expenses. Reviewing health plans to ensure eligibility for an HSA can be a valuable retirement planning strategy.
Timing Income and Expenses: Instead of solely focusing on buying equipment for tax deductions, consider the timing of income and ordinary business expenses. Delaying income or prepaying rent, taxes, or other necessary expenses can provide tax benefits without acquiring depreciating assets. Prepaid rent strategies can offer ongoing tax deductions if consistently implemented.
Seeking Professional Tax Advice: Consulting with a tax planner, accountant, or tax preparer is essential to identify tax-saving opportunities and make informed business decisions. A tax professional can provide personalized advice based on individual financial situations and goals. Building a team of financial professionals should be a priority to ensure comprehensive financial planning.

Big Beautiful Tax Opportunities

This week, Angela joins the Slice Podcast to talk about the latest tax legislation and how it impacts families, business owners, and retirees. She discusses the extension of current tax rates, the SECURE Act 2.0, 529 plans, charitable giving, Roth conversions, estate tax exemptions, and Trump accounts. She also emphasizes the importance of planning and optimizing financial strategies to take advantage of available opportunities and achieve long-term financial confidence.
 
Key Takeaways 💡
The extension of current tax rates is a significant benefit, as reverting to old rates would have negatively impacted many, especially middle-class married couples. Under the old rates, a married couple with taxable income just under $80,000 would have faced a 25% tax bracket, whereas the current rate at that income level is 12%. Additionally, the standard deduction would have been lower, leading to higher tax burdens for many.
The SECURE Act 2.0 and expanded 529 plans offer new opportunities for financial planning. 529 plans can now be used more flexibly for online academies, tuition, books, and services for individuals with special needs. Grandparents can contribute to 529 plans without it affecting the student's eligibility for student aid, making it a valuable tool for generational educational funds.
Charitable giving strategies can be optimized by using donor-advised funds and gifting appreciated assets. Gifting appreciated assets allows individuals to avoid taxation on the gain and reset their portfolio. Additionally, the cash deduction to charity starts this year, and you get $1,000, which goes to $2,000 next year.
Roth conversions should be considered, especially during market downturns, to convert assets at a lower value and benefit from tax-free growth. By converting during a downturn, individuals pay taxes on a smaller amount and can see significant gains when the market recovers. Planning for Roth conversions should be done in advance to be ready to act when opportunities arise.
Estate tax exemptions are currently high, but nothing is permanent, and planning is essential to take advantage of the opportunity. With estate tax exemptions around $26 million for couples in 2026, families have a chance to transfer wealth without incurring estate taxes. However, it's crucial to stay informed about state estate tax laws and plan proactively, as estate tax laws can change.
Trump accounts, while offering some benefits like government contributions for newborns and employer contributions, require caution due to potential estate tax implications. Gifting to a Trump account requires using some of the lifetime gift exclusion, necessitating the filing of an estate tax return. Individuals with estates over $10 million should exercise caution and consider potential estate tax issues.
Planning is a continuous process that requires annual review to optimize financial strategies and adapt to changing laws. Changes to Trump accounts, 529s, charitable giving, standard deductions, and the SECURE Act all necessitate ongoing review and adjustments. Additionally, the rising costs of healthcare and potential changes to healthcare tax credits make planning more critical than ever.
High-income earners in the 37% tax bracket face caps on itemized deductions, impacting their ability to give back through charitable gifting. The cap on itemized deductions is calculated using a complex formula involving 2/37ths of $100,000 or 2/37ths of the excess over $650,000 of taxable income. Planning is essential to maximize charitable gifting within these limitations, and waiting until the last minute will make it impossible to take advantage of opportunities.

The Dirty Dozen of Long-Term Care Stats (Rebroadcast)

This week Angela discusses the importance of long-term health care planning. She shares statistics about the likelihood of needing long-term care and the associated costs, emphasizing the need to create a comprehensive plan that goes beyond just financial aspects.
Key Takeaways 💡
Medicare typically covers the first 90 days of long-term health care services, but after that, individuals are responsible for covering the costs. Medicaid is a welfare program that requires individuals to have limited income and assets, potentially putting a spouse at financial risk and forcing them to spend down their assets before qualifying for assistance.
Individuals who are 65 years old have a 48% chance of needing some type of paid long-term care services in their lifetime. Furthermore, there is a 70% chance that individuals over 65 will need some type of severe long-term health care services.
From 2013 to 2017, there was a 200% increase in early onset dementia or Alzheimer's for Americans aged 30 to 64. This statistic highlights the importance of planning for long-term care needs, as early onset Alzheimer's can be devastating for families that are unprepared.
The average length of a long-term care stay for women is 3.7 years, while for men it is 2.2 years. Medicaid pays for 42% of long-term care costs, which is less than half, meaning that individuals and families need to be prepared to cover a significant portion of these expenses.
The median annual cost for homemaker and health aide services in Texas is $115,544, while in Montana it is $193,336. The median annual cost for a private room in a nursing home facility nationwide is $116,800, so it is important to research the costs of care in your specific location.
In 2020, 41.8 million Americans provided care to a person over the age of 50, so many families are sacrificing their own well-being to support loved ones. It is important to have a plan in place so that your family has a blueprint to follow, rather than burdening them with making difficult decisions in a crisis.
When creating a long-term health care plan, it is important to address the questions of who, how, what, and where. This includes identifying who will provide care, coordinate care, and manage finances, as well as determining where care will be received and what resources will be available.
It is important to consider different situations that could arise, such as both spouses living and cognitively strong but physically unable to care for themselves, or one spouse living and not cognitively strong. Addressing these potential scenarios can help families be prepared for whatever comes.

AI and Retirement Planning

This week Angela discusses whether retirement planning is different today with the advent of artificial intelligence compared to the past. She shares her experiences from 2006 and emphasizes that while the tools and technology have evolved, the fundamental principles of successful retirement planning remain the same.
Key Takeaways 💡
Retirement planning software has evolved significantly since 2006, but advisors still need to understand the underlying principles and manually adjust the software's output to create accurate plans. Relying solely on software without understanding the fundamentals can lead to incorrect plans, highlighting the importance of hands-on experience and a deep understanding of financial mechanics.
Technology can aid in communication and problem-solving, but financial advisors must possess in-depth knowledge and troubleshooting skills, similar to a car mechanic who understands how all components work together. Advisors need to understand the intricacies of financial planning and be able to adapt to unforeseen circumstances.
A successful retirement plan requires a solid and truthful budget, clear goals, a healthy risk and income plan, a plan to address potential risks, and an understanding of economic cycles. While technology and tools evolve, these core elements remain constant and essential for achieving a successful and sustainable retirement.
A truthful budget is crucial for retirement planning, and a budget with rounded numbers is a red flag that the person doesn't know where their money is going. Understanding where your dollars are going is essential, as even a small miscalculation can significantly impact your retirement outcome.
While AI and technology offer an "easy button" for retirement planning, relying solely on these tools can be risky, as a successful retirement requires a comprehensive approach that considers individual circumstances and potential risks. Taking the time to develop a well-thought-out plan, even if it means foregoing the easy button, increases the chances of a successful and sustainable retirement.

Pocketbook Power Plays

Inflation has made everything feel tighter—but there are ways to put money back in your pocket. In this episode, Angela shares five practical strategies to help you stretch your dollars without sacrificing your lifestyle:
✅ Reevaluate home and auto insurance✅ Use credit card rewards wisely✅ Make your cash actually earn interest✅ Cut interest costs on existing debt✅ Adjust your tax planning before 2026 hits
Talk is cheap—action saves money. Tune in and start putting these ideas to work today!

Where Are You Getting Advice?

In this episode, Angela discusses the importance of seeking sound advice and avoiding common pitfalls. She shares humorous anecdotes of bad advice and emphasizes the need to be cautious about the voices influencing our decisions. Angela highlights the significance of having a trusted team of professionals to address various aspects of life planning, including business, finances, and legacy.
Key Takeaways 💡
It is important to be mindful of the sources of advice we receive and how they impact our decisions, not only in faith but also in relationships, raising children, business, and financial matters. There is a lot of advice available on every topic, but it's crucial to discern whether it's accurate and appropriate for your specific situation, especially with the rise of AI and readily available information on the internet.
Relying solely on a single professional, even a trusted one, can lead to gaps and overlaps in financial plans because they may not have a holistic view or the necessary expertise in all areas. It is important to ensure that the professional is equipped with the right tools and knowledge to provide comprehensive guidance, as even well-intentioned professionals can give bad advice if they lack expertise in a particular area.
Bad advice from even skilled professionals can stem from two main reasons: they may not know what they don't know, leading them to offer advice outside their expertise, or the right questions are not being asked, resulting in a limited or biased perspective. For instance, asking a banker how to pay for a business succession plan may lead to solutions involving banking products, while a broader approach might consider tax benefits, insurance, or alternative funding methods.
As financial situations grow more complex, individuals outgrow the need for a single professional and require a team of experts, with a quarterback to lead the charge and coordinate efforts. The role of a life planner is to help individuals define what it means for them to live life on purpose, understand their future goals, current situation, family dynamics, and feelings about risk and money, and then identify the right professionals to involve at the appropriate times.
When seeking advice for business, money, or legacy matters, it's beneficial to consult with a life planner first to help formulate the right questions and avoid costly mistakes down the road. Life planners can help identify holes in financial plans, determine which professionals need to be involved, and ultimately guide individuals towards living life on purpose.

One Big Beautiful Bill Act - Part 2

This week Angela continues the discussion on the One Big Beautiful Bill Act. This episode focuses on student loans, charitable gifting, new tax legislation for individuals, and new tax legislation for businesses and farmers. The aim is to provide a broad overview to prompt listeners to inquire about potential impacts on their financial situations.
Key Takeaways 💡
The One Big Beautiful Bill Act introduces a lifetime borrowing cap for student loans, with graduates capped at $100,000 and medical/law students at $200,000, and further limitations for part-time students. Parent Plus loans now have a cap of $65,000, and repayment options have been simplified to just two choices, making it crucial to understand the implications for financial aid planning.
The new tax legislation introduces a 0.5% income floor for charitable write-offs, impacting the ability to deduct charitable gifts, and this floor also applies to corporations. This change means that individuals must now exceed this income threshold before they can begin to deduct their charitable contributions, potentially reducing the tax benefits of charitable giving.
The "no tax on tips, overtime, and Social Security" claims are misleading, as the legislation only provides exemptions on some tips, some overtime, and some Social Security income. There's an above-the-line exemption of $25,000 for qualified tips, but this phases out for higher incomes, and overtime has a $12,500 exemption with the requirement of separate reporting on the W-2, both clauses being eligible for only three years.
The "no tax on Social Security" is more of a senior deduction of $6,000 for those over 65, but it phases out for individuals with incomes starting at $75,000 or $150,000 for married couples filing jointly. This means that the promised benefits may not be as substantial as initially perceived, especially for seniors with higher incomes.
The legislation allows for 100% depreciation and bonus depreciation in one year, increasing the limits around Section 179 expensing up to $2.5 million. Additionally, certain qualified property used for manufacturing, agriculture, chemical production, or refining can be expensed at 100% in one year, though there are strong recapture rules over 10 years to consider.
Environmental quality incentives programs, conservation steward programs, and the agriculture conservation easement program have been funded through 2031, with increased funding due to the redirection of Inflation Reduction Act funds. There is also renewed funding through 2031 for smaller initiatives like well water programs and incentivizing farmers to open land for hunting and recreation, plus a feral swine eradication program for Texas.
The bill includes $66 billion in new spending for farm programs, the largest infusion since 2002, covering commodity programs, crop insurance, conservation, trade promotion, research, education, rural development, energy programs, and support for specialty crops. This presents numerous opportunities for farmers and ranchers to tap into various resources and programs.
The qualified small business stock exemption has been expanded, reducing the holding period to three years for partial gain exemptions, with 50% of gains not taxed at three years, 75% at four years, and 100% at five years. The exemption cap has also been increased to $15 million or 10 times the owner's basis, offering significant benefits for small business owners planning their exit strategies.

Financial Literacy (Rebroadcast)

Here’s the reality: financial literacy should be a required class in school—but for most people, it never was. And because of that gap, many of us are fumbling through adulthood, reacting to financial crises instead of preparing for them. This week we discuss 10 questions to jumpstart your financial literacy.

Life Planning at 18

In this episode, Angela addresses 18-year-olds and their parents about essential financial and legal considerations as they transition into adulthood. She emphasizes the importance of financial literacy and proactive planning to secure a stable future. The discussion covers medical and financial powers of attorney, building excellent credit, planning for the future, and investing in oneself through financial education.
Key Takeaways 💡
Upon turning 18, parents no longer have automatic access to their child's medical information or the ability to make medical decisions on their behalf; therefore, it is crucial for 18-year-olds to establish a medical power of attorney with HIPAA privileges, allowing their parents (or chosen representative) to access medical information and make informed decisions if the young adult is unable to do so themselves.
Similar to medical information, financial information becomes private at 18, and parents lose the automatic right to manage their child's finances; to address this, a durable power of attorney is essential, enabling parents to assist with financial matters such as bills and loans without needing court intervention, while avoiding the complications and liabilities of being directly on their child's bank accounts.
Having excellent credit is crucial and can save a person six figures over their lifetime by securing better loan terms and lower insurance premiums; building good credit involves using credit responsibly, such as through revolving lines of credit (credit cards) and installment credit (loans), and resources like "Seven Steps to 720" can provide valuable credit education.
It is important to think about the future and not get caught up in only living in the present; young adults should research and align their education and career paths with their life goals and desired lifestyle, considering the financial implications of different choices to avoid costly reinventions later in life.
Investing in oneself through financial literacy is essential for long-term financial stability; young adults should prioritize paying themselves first by saving and investing 20% of their income, learning to live off the remaining 80%, which will help them avoid financial struggles and make informed decisions about housing and other obligations.

What is Your Relationship with Money? (Rebroadcast)

In this episode, Angela discusses the concept of "money scripts" and how our beliefs about money, often formed in childhood, can significantly impact our financial and overall health. Drawing from the work of Dr. Brad Klontz, a psychologist and certified financial planner, the episode explores four common money scripts and offers advice on how to identify and break free from negative patterns to achieve a healthier relationship with money.
Key Takeaways 💡
Money avoidance is a belief that money is inherently bad, leading to anxiety and disgust towards wealth and successful people. Individuals with this script often unconsciously sabotage their financial efforts, working long hours just to make ends meet, creating a miserable cycle where they believe their problems would be solved with more money, yet they actively avoid it.
Money worshipers believe that money is the key to true happiness and that one can never have enough. This can lead to compulsive shopping, hoarding, and prioritizing work over relationships in the relentless pursuit of wealth. This script, while seemingly opposite to money avoidance, is equally dangerous to one's health and relationships due to the stress and social issues it can cause.
Money status equates net worth with self-worth, leading individuals to believe that a higher net worth equals a higher self-worth. People with this script often live lavishly, trying to keep up with the Joneses and incurring extreme amounts of debt. They are also more likely to be compulsive gamblers or lie to their spouses about money, driven by the need to maintain a certain social standing.
Money vigilance involves being overly cautious and anxious about money, though these individuals typically live within their means, pay off credit cards monthly, and save for the future. However, they risk high levels of anxiety and may never fully enjoy the fruits of their labor, constantly feeling financially insecure. This script is often rooted in experiences like the Great Depression, leading to hoarding and an inability to spend money comfortably.
To break negative money scripts, the first step is telling yourself the truth about your problematic patterns and accepting them. Create a vision board with pictures and words representing what you want to accomplish in life, focusing on loved ones, causes, and enjoyable activities, to serve as a constant reminder of what is truly important and how money relates to those values.
To change engrained money scripts, cultivate good financial habits by increasing your financial literacy through resources like websites, webinars, and seminars. Keep a journal to write down negative thoughts about money and immediately counteract them with positive statements. Develop a financial plan or budget with the help of a mentor or advisor to stay on track and avoid feeling overwhelmed.
Millionaires spend an average of 8.4 hours per month managing and planning their finances, highlighting the importance of prioritizing financial health. Setting aside dedicated time for financial planning can serve as an outlet to avoid negative money scripts, allowing you to live life on purpose knowing that your finances are being taken care of.

Life After Graduation - What Your Kids Should Know

This week we discuss essential life planning advice for parents and graduates facing the transition after high school or college. The episode covers practical financial knowledge, legal considerations, and ongoing parental support to help young adults successfully launch and sustain their independence.

The Griever's To-Do List (Rebroadcast)

This episode focuses on the importance of life planning to prepare for unforeseen circumstances like illness or death. Through the story of Maria and her husband Tom, the episode highlights the emotional, financial, and logistical challenges faced by families without proper planning.
Key Takeaways 💡
The episode emphasizes the importance of taking action to prepare for unforeseen life events, such as illness or death, to reduce the burden on loved ones. Angela encourages listeners to reflect on their responsibilities and take proactive steps to care for their families.
Maria's story illustrates the challenges of navigating life after her husband Tom suffered a severe stroke, which left him physically impaired and behaviorally changed. Their retirement dreams were disrupted, and Maria had to manage alone, highlighting the unpredictability of life.
Maria faced a steep learning curve in managing financial and estate matters after Tom's passing, despite having a financial cushion from selling their business. This underscores the need for a comprehensive retirement and estate plan.
The episode discusses the limitations of Medicare and health insurance, which often do not cover long-term care needs. Maria had to navigate the complexities of Medicare, Medicaid, and out-of-pocket expenses during a health crisis.
Financial planning challenges included managing the proceeds from their business sale, understanding tax implications, and dealing with inflation's impact on savings. Maria also had to make difficult decisions about social security and her late husband's belongings.
The emotional and logistical burden of funeral planning and addressing her own future needs led Maria to realize the importance of having a plan in place. The episode stresses that planning is a gift that provides peace and allows survivors to thrive.
Angela encourages listeners to consider what should be on their 'griever's to-do list' to avoid placing unnecessary burdens on family members during difficult times. Proactive planning can ease the challenges faced by survivors.