Each year, tax season brings with it a flurry of decisions and calculations, particularly regarding how to reduce one's overall taxable income. Among these decisions is whether to itemize or take the standard deduction. This can be a critical choice for many taxpayers, but especially high-income earners as they tend to have more complex financial situations that create a larger tax liability.

Whether high-income earners should take the standard deduction depends on their specific financial circumstances, including the amount and type of deductions available to them. And while this group of taxpayers is generally more likely to benefit from itemizing deductions, this is not always the case.

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When you think of an estate plan, you likely envision a list of assets to be distributed among your heirs upon your passing. But this outdated viewpoint may be why so few Americans have a formal estate plan. Presumably, drafting an estate plan is viewed as a concern only the wealthy consider.

However, the significance of having a well-structured estate plan cannot be overstated, regardless of income or net worth. An estate plan goes beyond the sheer allocation of assets. It is a comprehensive blueprint that not only safeguards your financial assets from potential legal entanglements and unnecessary taxation, but it can also provide your family with instructions for ensuring the well-being of any minor children in your absence.

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For many, Tax Day can be one of great distress and anxiety. Whether it is remembering an entire years’ worth of financial transactions, tracking down receipts, or simply the fear of having to write a big check to the IRS, many taxpayers experience a sense of dread as the April 15 deadline approaches.

The apprehension commonly associated with tax season, however, can be significantly reduced with effective tax planning throughout the year. By adopting a proactive approach, which includes regular reviews and adjustments, the Tax Day deadline becomes less stressful and more routine.

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For many high-earners workers in stressful, demanding positions, owning a real estate portfolio that supplements income and allows you to retire early seems ideal. Whether through house hacking, multifamily buildings, short-term vacation, or single-family rentals, the allure of generating passive income through real estate can sometimes be a mirage.

Owning real estate has long been the cornerstone of wealth creation in the United States. However, it does not happen overnight, and what online influencers and message boards often neglect to mention is the actual amount of time and energy required to manage a property. From screening tenants to collecting rent, performing maintenance, and managing online listings, the demands of owning real estate are a significant undertaking.

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As retirement approaches, the checklist of financial preparations often includes bolstering savings accounts, fine-tuning investment strategies, and choosing the right healthcare plan. However, one financial strategy that can significantly influence your lifestyle in retirement is paying off your home mortgage.

It is presumably common knowledge that maximizing one’s retirement contributions while in their 50s and 60s is the most sensible thing a pre-retiree can do to prepare for their third act. However, less is said about the impact of being debt free prior to retirement.

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When it comes to estate planning, many people make the assumption that their last will and testament has the final word over how their assets will be distributed once they pass. And although it is a reasonable assumption, it is important to recognize that a will, while an integral component of an estate plan, may not be enough to ensure the seamless transfer of assets to your intended beneficiaries.

One often overlooked yet pivotal aspect of estate planning is the significance of keeping beneficiary designations current. Failing to regularly review and update these designations can lead to unintended consequences, potentially cancelling out the entire plan.

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If you work for a living, your most valuable asset is not your house, vehicle, or even what’s in your bank account; it is your ability to continue generating income. And for high-income earners who are typically knowledge workers, this asset is even more vital.

Your specialized skills, expertise, and experience are not easily replaceable, and a temporary or permanent work stoppage can not only disrupt your income but can also affect your long-term financial security. As a high earner, your income influences your lifestyle. Disability insurance ensures that you can cover most of or all your monthly expenses without draining your savings or incurring debt.

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Quite often, when it comes to saving for retirement, most people think about owning traditional investment options such as stocks, bonds, mutual funds, and ETFs. And while those traditional investment vehicles certainly have their merits, other investors are increasingly turning to alternative options that provide greater control, potential for higher returns, and increased diversification, such as private real estate and privately held businesses.

Though it is certainly possible to own such an investment outright by writing a check and using “cash,” a potentially more favorable avenue gaining prominence is the self-directed Individual Retirement Account (IRA). A self-directed IRA is a type of IRA that can hold various alternative investments typically prohibited from regular IRAs.

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Despite the myriad of articles, white papers, and academic research pointing to the issue of Americans saving too little for retirement, it is quite common for some retirees to accumulate significantly more savings than they will ever need in their lifetime. This phenomenon can be attributed to several factors, one of the most significant reasons being that retirees often spend less as they age. If addressed in advance, this can present an incredible opportunity to create a lasting financial legacy for their heirs.

For older retirees who have managed to save more than they will likely spend, strategic Roth conversions can be an effective strategy to maximize the wealth passed on to the next generation. By taking advantage of the unique tax benefits offered by Roth IRAs, you can ensure that your hard-earned dollars continue to benefit your loved ones for years to come.

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Older Americans continue to roll the dice in the stock market, ignoring the conventional wisdom to protect their nest eggs by moving more of their investments to bonds and other income-producing assets. This is one of the most common oversights among investors approaching retirement, and it could also be the costliest.

According to a recent study by Fidelity Investments, Baby Boomers are more likely to employ a hands-on approach to managing their money than other generations. Among Baby Boomers with retirement accounts at Fidelity, 53% pick their own investments entirely, compared to 42% of Generation X and 25% of Millennials. What’s more, nearly half of those older investors managing their own money held more than 70% of their portfolio in stocks.

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You may have heard of the financial maneuver colloquially referred to as the Backdoor Roth IRA which allows high earners who make above IRS-established income limits to make contributions to a Roth IRA as long as they follow some strict guidelines. There is, however, a similar—albeit lesser known—strategy available to many of those same high earners known as the Mega Backdoor Roth. This allows individuals to contribute larger amounts to a Roth 401(k) than the standard contribution limit, which in 2023 is $22,500 (or $30,000 if you are 50 years of age or older).

While both options ultimately allow you to convert your savings to Roth, the Mega Backdoor Roth is more valuable because it enables contributions well beyond the $6,500 limits (or $7,500 if you are 50 years of age or older) of a Roth IRA. And since the Mega Backdoor Roth is essentially the 401(k)-plan equivalent of the Backdoor Roth IRA, these two strategies can be used contemporaneously.

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For those who maintain a full-time job while also performing side work such as consulting, deciding what to do with the extra money can be complicated—especially if that additional income isn’t necessary to cover monthly living expenses. For those who manage to find themselves in this enviable position, the solo 401(k) plan emerges as an ideal solution.

Typically seen as only a retirement savings plan, the solo 401(k) also acts as a unique savings vehicle that offers significant tax advantages. This plan operates similarly to a traditionaal 401(k) plan offered by larger companies but with a key difference: since a self-employed individual is both the employer and the employee, they can make contributions in both capacities.

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Investing in the stock market can be an exciting and potentially lucrative way to grow your wealth over time. But with an endless supply of stocks, cryptocurrencies, and other flashy new investment opportunities being promoted via social media every day, it can be tempting to jump on the bandwagon and buy up the latest thing everyone else seems to already know about.

However, success in investing hinges on distinguishing between genuine investing and speculative buying. Despite often being used interchangeably, investing and speculating are distinctively different approaches, often with very different outcomes. True investing involves buying assets with the expectation of generating meaningful returns over time, often based on the asset's intrinsic value and underlying business fundamentals. On the other hand, speculating involves buying into assets with higher-than-average risks, based solely on market trends or rumors, with the expectation of making above average short-term profits.

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While few working age Americans expect to receive a pension during their golden years, many are tasked with saving for their eventual retirements on their own. Knowing just how much money will be needed to retire comfortably 30, 40, or even 50 years down the line presents a seemingly impossible challenge, and uncertainty surrounding retirement saving and expenses can lead some to expect that they need far more than they actually will.

When planning for retirement, most people focus on how much they need to save, where they will live, and how they will maintain their standard of living. But one aspect of retirement planning that is often overlooked is the importance of spending money on activities that bring joy and fulfillment.

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Traditionally, we are taught from a young age that anyone who fails to pay their bills on time and in full is either irresponsible, lazy, or otherwise bad with money. By the time a person reaches young adulthood, they have essentially learned rule #1 of managing your personal finances: pay every bill on time, no matter what.

The reality though is that the importance of paying yourself supersedes paying anyone else. As cliché as it sounds, paying yourself first is an important financial lesson to learn and one that will serve you well in the long run.

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For every Life Insurance policy, there is an owner (which is usually the insured) and a beneficiary. At death, the proceeds are included in the owner’s estate for Estate Tax consideration.

If proceeds pass to the spouse, they could become estate taxable in the spouse’s estate. The Life Insurance Trust is irrevocable and non-amendable, and thus is an entity unto itself.

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If you are like most working professionals, you are probably looking for ways to grow your savings on your way to building a secure retirement. And while cryptocurrency can be a risky investment, it also has the potential to add significant returns to any portfolio. So, it is natural to wonder whether you too should invest in crypto. But with the latest string of bankruptcies and indictments related to some of the most vaunted crypto brokerages and custodians, confidence in the industry seems quite fragile right now.

2022 was a rough year for crypto investors to say the least. And so far, 2023 isn’t shaping up to be any better. But rather than focus on whether investing in crypto is right for you, or which token is best to own, the focus of this article is solely on the best place to safely hold your crypto, should you decide to own it.

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