Debunking Social Security Misconceptions

Debunking Social Security Misconceptions
Taking full advantage of Social Security benefits is an important part of any retirement income strategy. Yet how best to do so is often difficult due to the federal program being complicated and difficult to understand. Misconceptions are common and widespread, and competing points of view also exist as to when Social Security should be taken, but don’t get confused – below we explain what’s true and what is a myth.
Myth 1: Social Security benefits won’t be there when I retire.
The solvency/insolvency of the Social Security program is an ongoing topic of conversation these days. Insolvency means that the trust fund is unable to pay 100% benefits. It does not mean that Social Security will be completely eliminated and unable to pay any benefits, and pay them on time. Future benefits may only be paid from taxes collected, rather than reserves, which would cover roughly 80% of benefits.
Myth 2: Social Security will be a major source of retirement income.
Social Security benefits are just one piece of the puzzle when planning for retirement. Social Security alone is not likely to provide enough income for most people, especially taking into account escalating medical bills. Social Security benefits should be incorporated into your overall planning and budgeting, just like RMDs, and can be a helpful supplement to other income sources.
Myth 3: Social Security benefits don’t keep up with inflation.
Social Security payments are actually designed to keep pace with the rise in cost of living. Every year the Social Security Administration evaluates inflation data and responds accordingly. You may have received a notice regarding the new cost of living adjustment – which was 2.5% – which became effective in for 2025.
Myth 4: You will outlive Social Security.
It is not possible to outlive Social Security. Once you choose to start benefits, you will receive a payment every month until your passing. If your spouse survives you, and receives their own benefits, they will receive the higher of the two amounts, but cannot receive both. Generally, if you are the surviving spouse and don’t have your own Social Security retirement benefit, you could be eligible to receive a spousal benefit of 50%. More here: https://www.ssa.gov/survivor
Myth 5: I should claim my Social Security benefits as soon as possible.
Depending on your birthday, the “Full Retirement Age,” or the point at which you’re eligible for your full, unreduced retirement benefit, will fluctuate. You are allowed to begin taking Social Security as early as age 62, or as late as 70. However, the longer you wait, the higher your monthly benefit payments will be. The maximum benefit amount will be reached if you hold off until age 70, and this is what many retirees choose to do. But this may not be the best choice for everyone, so talk with your TFG Financial Advisor to determine the best time to begin taking benefits.
Myth 6: Social Security income isn’t subject to taxes.
You may need to pay taxes on your benefits, even though they are paid out by a government program. Up to 85% of your Social Security benefits may be taxable, depending on whether you are still working, or you receive income from other sources. If this is the case, your monthly Social Security benefits can be temporarily reduced if you are working and receiving benefits before your full retirement age (FRA), if your earnings exceed a certain annual limit.
Contact us: Misinformation is everywhere, especially on the internet. Whether retirement is close at hand or far into the future, be sure to have a conversation with your TFG Financial Advisor to create a sound strategy for your retirement, which includes when to take your Social Security benefits. Reach out to us at 561-209-1120.
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TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. It is not affiliated with or endorsed by the Social Security Administration or Medicare. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment and insurance strategies have the potential for profit or loss. Information presented is believed to be current. Photos and videos are used for the singular purpose of enhancing the website. None of them are photographs of current or former clients. Hyperlinks on this website are provided as a convenience. We cannot be held responsible for information, services or products found on websites linked to ours.
Safeguards to Stabilize Your Portfolio in a Volatile Market

Safeguards to Stabilize Your Portfolio in a Volatile Market
Turbulent market conditions can make any investor nervous, but the stock market is constantly fluctuating, which is quite normal over periods of time. Any number of factors may cause its rise or fall: global issues, economic news, industry up-turns (or down-turns). So, in the ever changing financial landscape that long-term investors face, what are some things you can do to help increase the likelihood of maintaining your portfolio’s earning stability? Here’s some suggestions:
- Keep your portfolio diversified.
Managing risk by spreading it out over different types of assets is one of the best strategies. Diversifying based on asset class and market sector are two ways to do this. It is important to note that every investment includes risk, and diversifying will not eliminate risk entirely, but it can help to cushion the blow when markets dip. Stocks, bonds, commodities, and other asset classes each play a unique role in your portfolio. Rebalance your portfolio as needed when market changes skew your allocation from its original target.
- Assess your risk tolerance on a regular basis.
At different stages of your life, the amount of risk you can tolerate or afford to take will shift. Generally, folks are willing to take more risk investing when they are younger, and as retirement approaches, this risk tolerance will decrease. Periodically assessing your risk tolerance and adjusting your portfolio accordingly can help you to transition through various phases of life, as well as protect your nest egg as you grow older. Consider including defensive assets for more stability as time goes on.
- Focus on the long-term perspective.
When it comes to the stock market fluctuations, avoid panic selling. Downturns happen, and bear markets are often short lived. Selling during a downturn can lock in losses. Depending on your investment goals, investing in quality companies with strong financial statements and consistent performances can add a layer of protection.
- Tap into tax efficiency.
There are a number of tax-efficient investment strategies you can employ, and tax-loss harvesting is a good option. This allows you to offset gains with losses to minimize your tax liability by selling investments that are down in value to offset profit from other investments. There are rules and exceptions, so have your TFG Financial Advisor guide you.
Reach Out to Us: Concerned investors can ease their worry during market turbulence by understanding asset allocation, diversification, cash flow needs, and risk tolerance before making any changes to their portfolio. Talk with a TFG Financial Advisor about revisiting their financial goals or asset allocation. Every investment includes risk; an advisor can educate you about strategies to minimize risk and tax, how to set up a portfolio from a long term perspective, and what makes sense in regards to your unique situation. Call 561-209-1120 to set up an appointment today.
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TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. It is not affiliated with or endorsed by the Social Security Administration or Medicare. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment and insurance strategies have the potential for profit or loss. Information presented is believed to be current. Photos and videos are used for the singular purpose of enhancing the website. None of them are photographs of current or former clients. Hyperlinks on this website are provided as a convenience. We cannot be held responsible for information, services or products found on websites linked to ours.
Savvy Financial Strategies for Your Sixties

Savvy Financial Strategies for Your Sixties
Did your Sixties sneak up on you? No matter where you are in your financial journey, there are ways to turbo charge your investment strategy to provide for your retirement years. Whether you completely retire to pursue your passions and spend time with Grandkids, or continue to work on a full or part time basis to continue contributing to your nest egg and fund your pastimes and pursuits, you should have a retirement plan in place. You may be an empty nester ready to downsize or relocate, or a successful entrepreneur who just sold their business with money to burn on a vacation home or expensive car, either way it is never too late to draft a retirement plan or improve the one you already have in place.
Just Getting Started In Your Early 60s?
- Working in Your Retirement Years: With longevity increasing for both men and women, it is never too late to create a retirement plan, and the sooner the better if you have nothing already in place. Age limits and thresholds for retirement plans have changed recently and RMDs are delayed, which encourage folks to continue to work if they are able. The longer you keep working and earning a paycheck, the easier it is to start a savings plan and stick to it. More information on the pros and cons, tax risks and Social Security effects of working during retirement age here.
- Stay Debt Free: Debt and loan payments are going to decrease how much you are able to put away for retirement, getting these out of the way as soon as possible will be very important. Come up with a monthly plan to minimize expenses, and pay off high interest debt first. Consider downsizing your home and lifestyle in order to have more funds available to save and invest.
- Ask an Expert for Help: No matter how close you are to retirement, you can still prioritize saving for it. Don’t waste valuable time and assets making mistakes, talk to a financial advisor who can help you calculate your savings goal and create a customized, realistic savings plan and investment strategy. Get educated on the right choice for you, whether stocks, bonds, CDs, or annuities, etc.
Have a Nice Nest Egg but Worried if it Will Last?
- Plan for Longevity: Use a range of financial options to help you grow your wealth while also protecting you from common risks like taxes, market volatility, inflation, and even the risk that you will live longer than expected.
- Using a mix of Roth and traditional accounts can help you manage your taxes, both as you’re saving for retirement and when you withdraw funds in retirement. Be sure to make allowed catch-up contributions. Look at a Roth Conversion with the help of your TFG Financial Advisors professional to time the conversion so it occurs in the most tax-efficient way possible.
- Whole Life Insurance can help protect your family and also accumulate cash value that can become an important part of your retirement plan. The cash value is guaranteed to grow and is unaffected by the markets, protecting against market volatility. (Remember that using cash value to supplement retirement income will reduce the death benefit.)
- Review Your Investment Strategy: As you approach retirement, the allocation of your assets may need to change. You may need more diversification, making sure your portfolio isn’t overly weighted in company stock. You may want to re-allocate your portfolio and shift the balance to more conservative assets can help protect against the risk of market downturns. Your TFG Financial Advisors professional can help you balance the need for long-term growth with the need for income generation and stability.
- Be Smart About Social Security: You are allowed to delay taking Social Security benefits up until age 70. By waiting, you can increase your benefit amount up to 8% a year. Just because you’re eligible to collect Social Security doesn’t mean you should. Receiving Social Security before you reach “full retirement age” results in a reduced benefit for life, BUT delaying payments increases your payout permanently.
- Review Tax Liabilities: Make sure that as you take RMDs or other withdrawals from retirement accounts as needed, they are done in the most tax efficient way possible. Time Social Security advantageously, and tax-loss harvesting techniques, use capital losses to offset gains. Explore options to further minimize taxes such as charitable giving, gifting to loved ones, using trusts to minimize estate taxes, 1031 exchanges etc.
Reach Out to Us: Our wealth managers and financial advisors work with you to develop a retirement plan that makes the most of your hard-earned money. We can help you minimize your tax liability, prepare for cost of living increases, navigate required minimum distributions (RMDs), update your estate plan, protect wealth for future generations and much more. We realize your retirement plan will need to change as your life and priorities change, so we’ll communicate often, and review it with you to adjust your portfolio and investment strategy as needed.
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TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. It is not affiliated with or endorsed by the Social Security Administration or Medicare. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment and insurance strategies have the potential for profit or loss. Information presented is believed to be current. Photos and videos are used for the singular purpose of enhancing the website. None of them are photographs of current or former clients. Hyperlinks on this website are provided as a convenience. We cannot be held responsible for information, services or products found on websites linked to ours.
Financial Essentials for Mid-Life Men and Women

Financial Essentials for Mid-Life Men and Women
Whether male or female, folks in their 40s and 50s are likely well-established in their careers, with college bound children on the horizon, and maybe a vacation home in their sights. Retirement planning starts to take on some urgency during this period, and long-term goals should be revisited for relevancy.
Make sure your 40s and 50s are full of memories and milestones. To avoid a mid-life financial crisis, here are a few suggestions to help navigate financial waters during this period:
Protect Your Family: Look into short term and long term disability insurance, and check the status of your emergency fund. When you have others that depend on you, consider life insurance which can be an important addition to your financial plan. Certain types of life insurance also build cash value, which can help you grow funds that you can access throughout your life.
Prioritize Retirement Planning: Maximize your contributions to any workplace retirement plan or IRA. Take advantage of catch-up contributions when you can. Know the benefits of a Roth vs a regular retirement plan, and the circumstances under which it would benefit you most. For more information, read our past article about these differences here. Look into a cash balance plan if you are a small business owner. Also consider a health savings account if you have access to one, contributions grow triple tax free.
Build a Portfolio: If you haven’t already, it may be time to turn accrued cash sitting idle, or in a short term account tied to interest rates, into an investment account which would support the growth of long term goals and wealth accumulation. Did you know portfolios can be custom tailored for your needs? Talk to a TFG Financial Advisors professional about your options, asset allocation, diversification and risk tolerance.
Save for College and Higher Education: 529 Plans are the best vehicles for funding your children’s education, the earlier you start the better. A 529 plan can be set up for a beneficiary of any age and anyone can contribute to this account. Earnings grow tax free. When used for qualified education expenses, distributions are federally tax free. TFG Financial Advisors can easily help you set up a plan. More info here.
Consider Estate Planning: Now is an ideal time to figure out who you would like to name as your Power of Attorney and what kind of legacy you’d like to leave behind. Consider both current and projected needs for your family. Working up an estate plan will ensure that your wishes for your money and your health are carried out. Your loved ones will need to know where financial accounts are and how to access them if needed. It is important to your will and beneficiaries up to date, review annually. If you own a business, be sure there is a “buy/sell” agreement in place and create a business exit strategy to preserve the wealth within your business and transfer it to your family.
Longevity’s Unique Impact on Women: With longer lifespans comes the increased risk of widowhood, and possibilities of divorce, many women will find themselves navigating the financial complexities of aging alone, and with reduced income on which to draw. The seeds of financial independence need to be planted now to prevent outliving your nest egg in later years. Proactive financial planning for women has never been more important, here are a few suggestions for this stage of your life:
- Plan to Live to 100: To be sure your nest egg is adequate, work with an advisor to assess lifestyle needs through age 100, and be proactive. If you are still working, maximize contributions to retirement accounts, and ensure you have incorporated health care planning, medical spending, long term care and life insurance into your plan.
- Protect Your Future Income: Work with your TFG team to examine what sources of income you could tap for retirement. This could include your IRA, 401(k), investment accounts, annuities, the cash value of any life insurance policies or other assets that could produce income in retirement.
- Be Tax Efficient: A financial advisor can help you determine how to draw down from your assets in a tax-efficient way. They can look at your entire retirement portfolio and create a drawdown strategy that takes your goals, taxes and other retirement risks into account.
Reach Out to Us: A financial strategy demands ongoing care; it’s not a one-time arrangement. With the guidance of TFG Financial Advisors professional, you can continually adapt and refine your financial plan to accommodate shifting priorities and circumstances as you age, ensuring you remain on course to achieve your goals and financial security later on.
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TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. It is not affiliated with or endorsed by the Social Security Administration or Medicare. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment and insurance strategies have the potential for profit or loss. Information presented is believed to be current. Photos and videos are used for the singular purpose of enhancing the website. None of them are photographs of current or former clients. Hyperlinks on this website are provided as a convenience. We cannot be held responsible for information, services or products found on websites linked to ours.
Financial Focus for Young Professionals

Financial Focus for Young Professionals
Your 20s and 30s can be an exciting time! College is behind you, you’re working full time, learning on-the-job skills, and the thought has probably crossed your mind that it might be time to learn some financial skills as well.
In your 20s, you are beginning to build a life on your own, in your own place, and become financially independent from your parents. What should your primary focus be? Here are some steps to follow today on your journey to building a firm financial foundation tomorrow:
- Establish a Budget: You have probably heard this one a thousand times by now, from just about everyone you know. But one more time never hurts. Having a budget will help you identify income and expenses, and better monitor your cash flow. A simple spreadsheet will show where your money goes, allowing you to direct funds to necessities and needs vs. impulsive purchases. It will also allow you plan ahead, and put a little aside in an emergency fund for unexpected circumstances.
- Repay Debts on a Monthly Basis: Nothing racks up more debt than interest charges you have to pay on obligations you already have. If you have student loans from school, or large credit card payments not fulfilled, now is a good time to set up a payment plan. Even monthly payments that reduce the debt will help you make significant progress. Take advantage of balance transfer deals when you can to significantly lower an interest rate. To avoid late charges, pay minimums on all your loans, but devote extra payment to the highest interest rate loan. Be careful taking on new debt before you put a big dent in what you already owe. You need to monitor your credit rating.
- Contribute to Workplace Retirement Plans: Now that you have a full time position, see if your employer offers a 401(k) or other retirement plan, take advantage of it, even if it is just a small portion of your paycheck. If there is no workplace plan, open an IRA for yourself and contribute every paycheck. Compounding will snowball over the years and give you a head start on retirement saving. (Compounding is the process in which an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings over time).
- Get Health Insurance: You may develop health issues even at a young age; making sure you are covered by health insurance may save you from drowning in medical debt. Check with your employer to see what the company offers as far as health benefits go, and if the plan does not fit your needs, visit the health care marketplace for options.
For people in their 30s, your goals will be changing as you move ahead in your career, start a family, or look to buy your first home. By now you should have established good financial habits to build on (see above). Here are some suggestions to help you continue to plan for the future, and make your goals a reality:
- Understand Your Net Worth: After you begin to formulate your goals, it is important to understand what your current financial snapshot looks like. Add up your income and assets and subtract your liabilities and fixed expenses. Now is the time to continue saving and growing your money to help meet those goals.
- Increase Savings as Wages Increase: When you receive a promotion, or transition to a higher paying job, make sure that you are increasing how much money you save. Use a portion of your new wages to continue to reduce bad debt which will help grow your net worth. Good debt tends to involve lower interest rates and is typically used to reach a major goal or milestone, a mortgage is an example of good debt. Bad debt carries higher interest rates and is often used to finance purchases that don’t provide much value back to you, high credit card balances are an example of bad debt.
- Consider an Investment Strategy: By now you have begun saving for retirement through a workplace 401(k) or an IRA. Perhaps it is time to start putting money into an investment account to save for big, long-term goals. Like a retirement account, an investment account will help your money grow over time. Now is a good time to learn investing basics and fundamentals to make sure that you’re putting away the right amount in the right places based on your goals. TFG Financial Advisors can help you
- Establish an “Important Financial Papers” file: Proper record keeping is very important as your family grows and your investments do too. Pick a safe location for a digital file containing important records, accessible in case of emergency. Be sure in include: Wills, Trusts, Estate Plans, Power of Attorney, Life insurance, Retirement Accounts, Real Estate Deeds, Investment and Bank Statements, 529 Plans. etc. Remember to review documents and beneficiaries regularly, especially after any milestones or important life changing events.
Reach Out to Us: Financial planning is about prioritizing what is most important to you and making a plan to get there. No matter what your age, it’s essential to review your current financial situation, including your savings, investments, insurance coverage, and assets as well as any outstanding debts. After you’ve gathered all your financial details, a TFG Financial Advisors professional can help pinpoint areas that require attention, and help you create a plan in order for you to reach your goals.
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TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. It is not affiliated with or endorsed by the Social Security Administration or Medicare. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment and insurance strategies have the potential for profit or loss. Information presented is believed to be current. Photos and videos are used for the singular purpose of enhancing the website. None of them are photographs of current or former clients. Hyperlinks on this website are provided as a convenience. We cannot be held responsible for information, services or products found on websites linked to ours.
A Changing Tax Landscape May Impact Your Portfolio Strategy!

A Changing Tax Landscape May Impact Your Portfolio Strategy!
A Republican majority in Washington may bring an extension of key provisions of the Tax Cuts and Jobs Act, but further tax cuts may be difficult in light of fiscal concerns such as a burgeoning budget and shrinking revenue.
Due to significant financial impact should certain provisions “sunset,” we are urging clients to have a conversation with their Financial Advisor regarding estate planning in the year ahead as well as for the future. A “wait-and-see” approach runs a significant wealth-preservation risk: loss of the $14 million additional exemption for married couples or $7 million for individuals that is available today.
To mitigate that risk, and to avoid any rushed planning towards the end of 2025, clients looking for flexibility as the deadline approaches may wish to do their planning now and ready any necessary documents for transfers of property towards the end of 2025, when the fate of the TCJA may be more apparent.
The Internal Revenue Service has issued an “anti-claw-back” regulation that protects taxpayers from being penalized for using their exemption during their lifetime. Under this regulation, any exemption used during life will be viewed as final. Thus, if the exemption were to decrease in subsequent years, the IRS would not impose a tax on the prior gifts, nor claw assets back into the taxpayer’s estate.
Current exemption levels for estate, gift, and GST taxes may remain at $14 million for each spouse and double that per couple, the question is, how will the government pay for this? Elimination of green energy tax credits? Tariffs on imported goods? Most likely a “claw back” of recently committed IRS funds. Any choice will have a ripple effect and change where you might look to invest as well as the dollars in your pocketbook. FYI – the corporate income tax rate was reduced by the TCJA, from 29% to 21%, and is a permanent change not subject to sunset.
Ideas floated on the campaign trail included elimination of tax on Social Security, tipped wages, and a reduction of the corporate tax to 15%. Again, how would the government make up that revenue, when already suffering from an increase in debt that is now 124% of GDP? Taxes may actually have to be increased to curb annual deficits and growth of the national debt.
Wealth planning strategies we suggest:
- Annual gifting as part of an annual plan of “lifetime giving.” When gifting an asset with appreciation potential to an individual or trust, like stock or investment real estate, you remove the appreciation and income from your tax base for the year of the gift, as well as future years.
- Tax loss harvesting to offset gains that would be taxed at current rates, (or potentially higher ones).
- Postpone sales of capital assets to later years that would be taxed at potentially lower capital gain tax rates.
- Strategically manage income tax brackets overtime by increasing portions of your income while tax rates are still low,
- Review deferred compensation elections,
- Consider partial or total conversions of IRAs to Roth IRAs.
- Look for more tax diversification for future income sources, and
- Accelerate the purchase of imports for personal/business use to avoid higher prices due to tariffs.
Reach Out to Us: The current estate and gift tax exemption amount offers a unique window of opportunity for estate planning, but it may sunset, and then a significant portion of it may be lost. The first step is to contact your TFG Financial Advisors’ professional as soon as possible to discuss your existing estate plan and unique circumstances. At the very least, be sure revocable and irrevocable trust documents account for estate taxes, and the future growth and appreciation of assets. Those with larger estates may wish to take advantage of advanced planning strategies that remove assets from the taxable estate, or deploy discounting strategies to reduce the taxable value of their estate. When giving annual tax free gifts, be sure to consider the beneficiary’s tax liability; the benefit to you comes at the cost of the recipient receiving the asset with your cost basis.
TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment strategies have the potential for profit or loss.
Site Map:
TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. It is not affiliated with or endorsed by the Social Security Administration or Medicare. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment and insurance strategies have the potential for profit or loss. Information presented is believed to be current. Photos and videos are used for the singular purpose of enhancing the website. None of them are photographs of current or former clients. Hyperlinks on this website are provided as a convenience. We cannot be held responsible for information, services or products found on websites linked to ours.
Election Year 2024 Portfolio Planning

Election Year 2024 Portfolio Planning
It’s October, and it’s time to think about how the outcome of the election could impact our economy, our markets and, of course, YOUR money. Even if the election doesn’t go your way, your financial success is in your hands. Here’s a few ideas to help you make the most of the financial opportunities that might present themselves over the next few months:
- Protect investments from market volatility traditionally surrounding elections, both before and after;
- Utilize tax minimization techniques on retirement accounts while tax rates are still low;
- Don’t wait to make needed portfolio adjustments in the hopes the market will be higher just before or after the election in November; and
- Remember not to overreact to the tax proposals floated by the candidates!
But first, be sure you are familiar with the fundamentals:
- THE FED:
The biggest question in the markets in September was whether the Fed would cut rates. Well, it did, and the rate cut made big news since it was the first and the biggest cut since March 2020 when COVID-19 was hammering the economy. The cut celebrated a victory over inflation, which peaked at 9.1% in June 2022, and fell to 2.5%. And there may be another (smaller) cut on the tail of this one later in the Fall.
Keep in mind, Fed policy has more influence over short-term rates than long-term rates. With debt and deficits likely to remain high under either party, and the Fed reducing its footprint in the Treasury market, the government will need to find buyers for its debt.
With the Federal Reserve expected to lower interest rates again later this Fall, many investors are facing renewal rate risk. If you’ve been benefiting from the current high-interest-rate environment, those same returns may not be available to you toward the end of the year. You may have bought a CD that’s been performing well, but it’s maturing this Fall – be sure to work proactively with your TFG Financial Advisor to find a way to help you lock in an attractive rate of return for future months.
Looking long term, the age of fiscal austerity may be over regardless of which party wins in November and occupies the White House in January of 2025. Spending priorities between infrastructure, social services and defense will vary depending on the election results, but it appears unlikely that fiscal restraint will be a priority in Washington for the future.
- THE ELECTION:
You also may want to consider rebalancing your portfolio if you’re taking on more risk than necessary. While Wall Street tends to perform well in the long term following election years, investors may experience some volatility in the short term leading up to November. Now is a great time to look at your portfolio and make sure you have a long-term strategy designed to withstand market fluctuations.
There is an old saying that “markets are not red or blue, they are green.” It doesn’t matter who’s in office, markets care only about what the legislative policies will be. This is reflected in the market performance leading up to Election Day rather than market performance post-election. In every election year since 1980, except for two, markets moved higher after Election Day. The two exceptions were 2000 and 2008, remember what was happening then? Sectors typically perform based on the stage of the economic cycle we are in, as well as other macro factors. Buying real estate because you think either Trump or Kamala is going to win or lose may not be wise.
- CANDIDATE TAX POLICIES:
Traditionally, we think of Democrats as spending more and taxing more. We assume Republicans want to tax less and spend less. Often the reality is quite different. Most of the proposals we have seen to date from both sides are spend more and tax less.
A key issue for voters and the markets is taxes. The Tax Cuts and Jobs Act (TCJA) that went into effect in 2018 has two components: corporate and individual. The corporate side is permanent. The individual side is temporary because making it permanent would have created too big a deficit to pass the bill. Trump is in favor of making the tax cuts permanent. Democrats want to do the same thing for those taxpayers making less than $400,000. In both cases, the taxes would be lower than they would be if those provisions of the TCJA are allowed to expire.
- ELECTION HISTORY IS ON YOUR SIDE:
It can be tempting to sell stocks and move to the sidelines until election results are finalized. Historically, giving in to that temptation has been unwise. The S&P 500 has generated positive returns in 20 of the 24 election years since the beginning of the index. Of course, we must point out, past performance is not a reliable indicator of future performance.
- GOVERNMENT POLICY CAN HELP OR HURT SECTORS, BUT FUNDAMENTALS STILL MATTER FOR STOCKS:
Energy policy is a clear area of distinction between both presidential candidates. Donald Trump is likely to be more friendly to domestic oil and gas production, with Kamala Harris will be more likely to favor additional spending on renewable energy. Industrial companies may benefit under either party, as both candidates prioritize bringing manufacturing back to the United States.
China will be a target of tariffs and trade restrictions regardless of the election outcome. China has ample room to retaliate, creating elevated risk for multinational companies and those in the US with substantial revenues from China as well as US companies relying on China-based supply chains and resources.
Don’t overreact to the tax proposals suggested by the candidates. Tax policy may be more influenced by control of Congress than by who wins the presidential election. Major changes in tax policy would require a clean sweep by one party, which is a possibility but not likely at this time.
Reach Out To Us: Do elections really influence the direction of markets? Some pundits think so, but investors should resist the impulse to make major changes solely in response to the latest polls or policy pronouncements. Successful investors consider elections alongside a wide variety of factors that influence markets while staying focused on maintaining a sound long-term asset allocation and investment strategy. You can’t control the election outcomes or what the market may or may not do. But you can work with TFG Financial Advisors to build your own retirement strategy and create a portfolio that revolves around the lifestyle you want.
TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment strategies have the potential for profit or loss.
Site Map:
TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. It is not affiliated with or endorsed by the Social Security Administration or Medicare. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment and insurance strategies have the potential for profit or loss. Information presented is believed to be current. Photos and videos are used for the singular purpose of enhancing the website. None of them are photographs of current or former clients. Hyperlinks on this website are provided as a convenience. We cannot be held responsible for information, services or products found on websites linked to ours.
When is "ROTH" the Best Choice for Your IRA or 401(k)?

When is "ROTH" the Best Choice for Your IRA or 401(k)?
The most common and powerful tools to help individuals save for retirement are IRA and 401(k) accounts. Both types also offer a “Roth” option, but most folks are not familiar with the similarities or differences between them, or know when a Roth is more advantageous tax wise for different stages of life. You might even want to set up a combination of accounts depending on your financial situation. Confused? We offer a straightforward comparison below of the similarities and differences between a Roth IRA and Roth 401(k):
Tax treatment: Roth 401(k)s and Roth IRAs let you save and invest dollars you’ve already paid taxes on and potentially make tax-free withdrawals (including any investment earnings) once you’re 59½ or older. With traditional IRAs and 401(k)s, you typically make contributions with pre-tax dollars, or you may be able to deduct your contributions from your taxable income. Then investments can grow tax-deferred, and you may pay income taxes on what you withdraw in retirement.
Income restrictions: Roth IRAs have strict income limits for eligibility based on your modified adjusted gross income. Roth 401(k)s, meanwhile, have no formal income limits. If your employer offers a Roth option, you can contribute no matter your income up to the greater of the plan’s limits or the 401(k) deferral limit.
Contribution limits: You can save much more per year using a Roth 401(k) than a Roth IRA. Here’s how the contribution limits compare for 2024:
Roth IRA
- Under age 50: $7,000
- Age 50+: $8,000
Roth 401(k)
- Under age 50: $23,000
- Age 50+: $30,500
With Roth IRAs, you cannot contribute more than your earned income each year. If you have a Roth 401(k), you cannot contribute more than what you earn at the company that holds your plan.
Note: Starting in 2026, the SECURE Act 2.0 will require catch-up contributions to be Roth for those who made more than $145,000 (adjusted for inflation) in the prior year.
Withdrawals before retirement: With most retirement accounts, you can’t access the money you contribute or any investment earnings before retirement age without incurring a 10% early withdrawal penalty, plus any applicable income taxes.
A Roth IRA lets you access your contributions before retirement without penalty according to certain rules. If you want to withdraw investment earnings without tax or penalty before age 59½, at least 5 years must elapse between the beginning of the tax year of your first contribution, and you must also meet one of the approved exceptions. Otherwise, you are subject to the standard 10% early withdrawal penalty plus any applicable income taxes on previously untaxed dollars (your investment earnings).
For a Roth 401(k), you may be able to avoid early withdrawal penalties if the withdrawals qualify as a hardship withdrawal. If your plan allows you to make a non-hardship early withdrawal from your Roth 401(k), you’ll likely need to make a “pro-rata” withdrawal that combines contributions and earnings and represents a proportion of earnings each contributed dollar has made. This means a withdrawal that includes your previously untaxed earnings, which might be taxed or penalized, depending on the situation for your withdrawal.
Withdrawals during retirement: You may have to pay income taxes on the earnings you take out if you’ve made your first contribution within the last 5 tax years. However, you will not have to pay a 10% early withdrawal penalty on any earnings withdrawn after age 59½.
Employer contributions and matches: With employer-sponsored retirement plans, like Roth 401(k)s, your company may make contributions on your behalf, known as matching contributions, which require you to contribute a certain amount yourself that your employer then matches as a preset percentage or amount.
It’s important to note that currently employer contributions and matches can only be made to pre-tax accounts. So if you are contributing to a Roth 401(k), your employer would have to make its matching contribution on a pre-tax basis. Once the contributions are fully vested and if your plan allows, you could move them to a Roth account later, though you might have to pay income taxes on the amount rolled over.
Investment selection: Only you can contribute to a Roth IRA. You may find a wide range of investment options when you invest with a Roth IRA over a Roth 401(k). With a Roth 401(k), you’re limited to the investments your employer chooses to include in its plan’s investment lineup. But because you have options with a Roth IRA, you can choose what you prefer to invest in.
Plan loans: While not all employers offer the option, your Roth 401(k) could give you the ability to borrow from your account through a 401(k) loan. If this option is available, you could borrow up to 50% of your balance up to $50,000. In most cases, if you don’t pay the loan back within 5 years or you are unable to repay within a preset amount of time when you leave your company, your loan counts as a withdrawal and could be subject to taxes and penalties. Roth IRAs do not offer a similar feature, though you do have the option of withdrawing contributions tax-free at any time (rules apply).
Required minimum distributions (RMDs): Almost all retirement accounts are subject to forced distributions called required minimum distributions, or RMDs. These kick in when you turn 73 or stop working at the job offering the plan, whichever comes later, and they must be withdrawn whether you need the money or not. Otherwise, you may owe a tax penalty equal to 25% of the amount you were supposed to have withdrawn. If, however, you correct your mistake and take your RMD within 2 years of when you were intended to, then the penalty is further reduced to 10%.
Roth IRAs are not subject to RMDs, and starting in 2024, neither are Roth 401(k)s. This could make Roth accounts more popular in estate planning, as they could benefit from potential compound growth by remaining undisturbed for a longer period, and can be inherited without requiring the beneficiary to pay taxes on withdrawals.
Can you have a Roth 401(k) and Roth IRA? YES, you can have both. If you have a Roth 401(k) at work and you meet the income requirements to contribute to a Roth IRA, you can contribute to both. How you plan contributions to each depends on your financial goals. Be sure to consider the benefits and limitations of each type of account, detailed above, when deciding how much to save in each.
Helpful IRS Comparison chart for Roth 401(k), Roth IRA, and pre-tax 401(k) retirement accounts: https://www.irs.gov/retirement-plans/roth-comparison-chart
Reach Out to Us: It’s never too early to start planning for retirement! TFG Financial Advisors wants to make sure you are aware of the different financial vehicles you can use to save your hard earned money now, in order to be able to live the life you want later. Despite both being called “Roth,” Roth IRAs and Roth 401(k)s offer very different pathways to tax-free withdrawals in retirement. Our TFG Financial Advisors can provide a road map for retirement planning, and educate you as to which of these 2 accounts fits best with your goals. The earlier you contribute, the more time your money has to grow. We have other great ideas to help grow your nest egg. Contact Cory Lyon, TFG Financial Advisor, at 561-209-1120 or clyon@tfgfa.com.
TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment strategies have the potential for profit or loss.
Site Map:
TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. It is not affiliated with or endorsed by the Social Security Administration or Medicare. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment and insurance strategies have the potential for profit or loss. Information presented is believed to be current. Photos and videos are used for the singular purpose of enhancing the website. None of them are photographs of current or former clients. Hyperlinks on this website are provided as a convenience. We cannot be held responsible for information, services or products found on websites linked to ours.
Yours, Mine & Ours: Investing for a Blended Family

Yours, Mine, & Ours: Investing for a Blended Family
You may have noticed that multiple marriages, divorces, step-parents, bonus parents, single parents, and life partners make up numerous households across the country, and provide a second chance for happiness for many. However, navigating the unique financial needs of blended families can be a challenge. There may be children from a previous marriage, stepchildren from a spouse’s previous marriage, and new children together. Having discussions with a trusted advisor regarding investments, estate planning, and the possibility of joining finances is a crucial step toward successfully reaching your goals. Here are a few topics TFG Financial Advisors urges you to consider for financial as well as family harmony:
- Precautions: Take proper precautions with property like the family home, as well as other large and important assets. Generally, a “pre-nup” executed before marriage defines which assets are characterized as the separate property of one spouse, which becomes communal property, and what happens to the property of either spouse upon divorce or death. Prenuptial agreements are often used to preserve wealth for the children of a first marriage before an individual enters into a second union. It can also include other directives to preserve ownership of future assets, tax elections, and protect income, including future income, that would occur if the marriage dissolved.
- Trusts: Deciding how to divide assets in your estate plan takes careful thought. A trust holds assets on behalf of one or more beneficiaries and can specify exactly how and when the assets pass to those beneficiaries. Trusts tend to avoid probate, and beneficiaries may receive assets more quickly than when transferred through a will. With a revocable living trust you retain the right to change beneficiaries and distribution amounts. You might transfer assets to a living trust and designate members of your blended family as beneficiaries. A trust does not replace a will, rather it can be used in conjunction with a will. For blended families, certain types of properly established trusts can provide financial support for your spouse while making sure something is left for your children. A TFG Financial Advisor can help you make the decision regarding which kind of trust may be right for your situation.
- Beneficiaries: Some of the biggest mistakes people can make when determining who will inherit their assets relate to the beneficiary designations of their retirement accounts, other financial accounts and annuities, as well as insurance policies. Regardless of what a will or trust says, the asset goes directly to the designated primary beneficiaries. Leaving a prior spouse listed as a designated beneficiary can cause issues! Be sure to properly update your beneficiaries on important financial documents, and yes, you are allowed to name more than one.
Be sure to have open and honest conversations about money as you merge your households. Your actions will have financial consequences as well as tax implications. Other important issues for you to consider are:
- Where will you locate your new domicile? Will you sell your prior homes and property and buy a new one? Will you rent out your current home? Will you relocate to a different state?
- How will you handle your bank accounts, and financial accounts? Will you combine them, maintain separate ones, or use a combination of the two choices for certain assets?
- How will you manage investment accounts and retirement accounts? You may have different ideas about risk or financial goals, even charitable giving.
- Handling powers of attorney and living wills will need to be addressed.
- Is more insurance needed?
Reach Out To Us: Working with a TFG Financial Advisor can help to make the challenges associated with a blended family easier to navigate. We can educate you on your options and help you choose the best solutions for your individual situation, so your new blended family is as financially supported and protected as possible. Please contact Cory Lyon at clyon@TFGFA.com or at 561-209-1120.
TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment strategies have the potential for profit or loss.
Site Map:
TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. It is not affiliated with or endorsed by the Social Security Administration or Medicare. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment and insurance strategies have the potential for profit or loss. Information presented is believed to be current. Photos and videos are used for the singular purpose of enhancing the website. None of them are photographs of current or former clients. Hyperlinks on this website are provided as a convenience. We cannot be held responsible for information, services or products found on websites linked to ours.
Mid Year Financial Wellness Checklist

Mid Year Financial Wellness Checklist
Your health is important, so you don’t delay that mid-year trip to the doctor for a check-up. Well your financial health is just as important! And July is the perfect time for you and your family to have a mid-year financial check-up. Not sure how to review your goals and update your financial plan? Here’s some ideas to get you started on the road to financial wellness.
FINANCIALLY IMPACTFUL IDEAS FOR INDIVIDUALS:
- Be Charitable. Consider this for that special graduate, or newly married child or grandchild, or your favorite non-profit. Fewer taxpayers will claim charitable deductions over the next few years due to tax reform, but remember your favorite charity when trying to avoid capital gains tax and gift them appreciated stock. If you are feeling generous towards family members, you can make annual exclusion gifts of up to $18,000 per individual each year.
- Make the Most of Employee Benefits. Mid-year is a good time to maximize 401(k) contributions, and if you get a bonus or expect extra commissions, consider putting it into your 401(k). 2024 Defined Contribution Plan Limits for 401(k) plans have risen slightly, the 2024 IRA contribution limit is $7000 for those under 50, and $8000 for those age 50 or over. Double check to see if your current health insurance plan is the most cost effective plan for you and if not, make a change at open enrollment. Be sure to shore up healthcare accounts like your FSA and HSA.
- Recalculate Retirement. While lounging by the pool, recheck your retirement goals, timeline, and savings so far this year. We mentioned 401(k) contributions above, but also make contributions where appropriate to a traditional IRA which are immediately tax-deductible, or contributions to a Roth IRA that are tax-favored at retirement. If you are an employer with a small staff consider setting up a cash balance plan!
- Think About Succession Planning. Want to make Summer vacation last all year long? If you own a business, and retirement is 3-5 years away, inquire about Business Exit Planning to build value today to make your business attractive to buyers tomorrow. You want get the most $$$$ possible when you sell your business for your retirement fund. Estate planning is not always enough to guarantee a secure financial future for your family. If you have a partner in a business, always be sure there is a buy/sell agreement in place.
- Leave a Legacy. Put an estate plan in place or revisit your existing wills, beneficiaries, gifting options, insurance and trust documents in light of tax reform and its “sunset” date of 2025. Transferring assets to a trust or other entity has potential tax consequences to consider, and things have changed dramatically this year. Since the lifetime gift tax exemption has been increased to over $13 Million (double for couples), historically high amounts of assets can be transferred often without incurring any estate tax. Assets like stocks, real estate and other holdings are passed on at their market value at the time of death, so if they have appreciated they may be sold and no tax may need to be paid on those gains.
- Monitor Investments and the Markets. Keep in mind that capital losses offset capital gains. Consider selling stocks or securities with losses and offsetting your current year gains. If your losses exceed your gains, you can deduct the difference on your tax return, up to $3,000 per year, and carry over any excess to future years. Long-term capital gains are taxed more favorably than short-term gains, and even though the tax brackets have changed for 2024, the long-term capital gains tax structure has stayed the same. In 2024 you’ll pay a capital gains tax rate of either 0%, 15% or 20% for assets you held for more than a year. Capital gains tax rates on assets held for less than a year correspond to your income tax bracket. Some investors may owe an additional 3.8% in Net Investment Income Tax – keeping an eye on your portfolio to evaluate the recognition of losses to offset gains may mitigate the NIIT. Revisit the fees you are paying to your wealth managers, the amount adds up overtime and may surprise you.
- Avoid Paycheck Surprises and Underpayment Penalties. Take a good look at current withholding, don’t get caught short if you got a raise this year. And beware the significant impact of taxes on that year-end bonus; depending on how it is reported it could significantly affect your tax bill. If your situation has changed and you are no longer subject to withholding, you may need to make estimated tax payments!
- Negotiate Reimbursable Business Expenses. If you’re a dependable employee, chances are that your employer won’t want to lose you over the cost of a cell phone, home computer and printer, or mileage that’s deductible for 2024. Consider asking your employer to reimburse lost expenses directly to you (non-taxable), or boost your salary to make up the difference (taxable).
- Get an Insurance Audit Where Appropriate. Life happens, things change. Divorce, marriage, more income, less income, new boat or new baby, so be sure you enough insurance and the right kind of insurance, and are not paying for what you no longer need..
- Got Real Estate? Consider a 1031 Exchange. Tax reform limits this capital gains deferral strategy to real estate assets only. You roll all the capital gains from the property you’re selling into a new property, which takes on the old property’s low basis, keeping money working for you that would have gone to pay taxes.
- Is Your Budget Busted? Examine your income and expenses over the last 6 months to see if you are following your budget. Do you have excess cash that could be put to better use with an appropriate investment or used to pay down credit card debt, student loans, or debt with high interest rates? We can help you crunch the numbers and compare your options.
- Use the Power of the 529! If you are saving to pay for college tuition for your kids, don’t discount the benefit of saving through a 529 plan. As tuition costs climb they are valuable as savings accounts that grow, but are exempt from federal taxes. Thanks to tax reform, 529 plans can now also be used for private elementary and high school tuition. Plans may vary by state. If you or a dependent is disabled, use an ABLE account to pay for approved expenses.
- Examine Medical Expenses. The good news is that medical and dental expenses survived tax reform and for 2024 the magic number is 7.5% of your adjusted gross income (AGI). The increase of the standard deduction in 2024 means that fewer taxpayers will have an incentive to itemize. But by “bundling” your deductions together – you can take advantage of them in the year that it makes the best tax sense. So if you know that you have a big medical expense coming up later in 2024, why not get those visits to the dermatologist, dentist, eye doctor and general practitioner scheduled over the Summer months?
- Brush up on Changes in Home Related Tax Breaks. For 2024 the rules have remained the same regarding caps on mortgage interest deduction and eligibility for home equity debt interest deduction. In other words, think twice about the tax consequences of paying down debt with a home equity loan or buying a second home for vacations. The total deduction for all state and local taxes, including both property taxes and either income taxes or sales taxes, is capped at $10,000. Taxpayers who suffer storm or other damage may lose, so your homeowner’s insurance should probably be reviewed.
- Work from Home. Consider the simplified home office deduction. Taxpayers can elect a simplified deduction for the business use of their home. Tax reform dictates that you cannot deduct home office expenses if you are an employee, but the rules for self-employed persons remain unchanged. If you are self-employed, you can continue to deduct qualifying home office expenses.
Turn Your Hobby into a Business. If your Summer hobby makes consistent income, turning it into a business will allow you to deduct losses if you keep good records for the IRS to show you are engaging in the activity to generate a profit.
Reach Out To Us: There are 6 months left in the year to make changes that could improve your financial wellness and save you tax dollars you could invest instead in your portfolio instead! Let’s get started and take those first steps by scheduling a meeting to discuss customized financial planning for your individual situation. Call Paul Wieseneck, CPA, RSSA, TFG Financial Advisor at 561-209-1102, or email him at PWieseneck@fuoco.com.
TFG Financial Advisors, LLC, is registered as an investment adviser with the SEC. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Tax rules and regulations are subject to change at any time. All investment strategies have the potential for profit or loss.