Around this time of year, taxes are near the top of just about everyone’s to-do list. At Hill Investment Group, we think about taxes every day of the year, working to maximize our clients’ after-tax returns. That means we not only try to maximize the returns in our clients’ portfolios but also limit the amount of money they have to pay in taxes.

Some of you may have already filed your taxes, and good for you. For those that have not already filed, below we share a few tips you can use to hopefully reduce the amount you send to Uncle Sam for 2021.

Contribute to your IRA: Saving in a traditional IRA is one of the simplest ways to reduce taxes. You can contribute up to $7,000 to a traditional IRA (if you are over age 50) and count it as a 2021 contribution to potentially reduce your income.

Contribute to a Health Savings Account: If you are covered under a high-deductible healthcare plan, a family can contribute up to $8,200 (if the owner is over age 55) to a Health Savings Account (HSA) and count it as a 2021 contribution. This is an often-missed opportunity. We were told by one CPA that if you can only contribute to your HSA or 401(k), they would pick the HSA for the tax benefits – quite an endorsement.

Charitable Contributions: Married couples can deduct up to $600 of cash charitable contributions even if they take the standard deduction. So, although you may not have other deductions, be sure to keep track of those cash gifts you made in 2021.

As with all tax planning, we recommend you connect with your accountant or CPA to get more information on your specific situation.

When tackling big, audacious goals, you don’t need big, audacious actions. All you need is the contagious magic of micro-actions.

Let me give you an example.

When I travel, I often don’t feel like exercising, even though I know I’ll feel way better if I
do. So, in the morning, I don’t commit to a program to lose 12 pounds in twelve days or promise myself to run for 40 minutes. I just put on my gym clothes.

That’s it.

And then, since my gym clothes are on, I almost always decide to just walk to the gym and take a look.

What happens next is what almost always happens when I step into a gym: I see the bikes and think, “I bet it will feel good to get on one of those for a few minutes.” So I do.

And other exercises naturally follow that.

After I exercise, I think, “Man, it would feel great to stretch,” so I do that, too. And then, since I’m on a roll, I decide to eat a healthy breakfast instead of sugary garbage. Later at work, I’m extra productive since my body feels great.

See what I mean about contagious?

There’s a reason 80% of New Year’s Resolutions fail. The problem isn’t the goals, it’s the way we go about trying to tackle them. We try to go big and burn out, forgetting that “slow and steady wins the race.”

The magic here is in breaking down big, hard, sometimes even scary goals into attainable pieces. Find something small and attainable you can do, start there, and let the contagious magic of micro-actions do the rest.

This time of year, people are buzzing about New Year’s resolutions, guessing what the tax changes will be, and all sorts of anxiety-provoking topics.

But you, you’re different. Give yourself a huge pat on the back. You can congratulate yourself on checking the box on most, if not all, of your financial resolutions –  for this year and next! Why?

You’re a Hill Investment Group client. With that single decision, you get to delegate your worry to us, benefitting from:

• A long-term, low-cost, tax-efficient, and globally diversified investment portfolio
• A financial plan grounded in your personal goals, your family, the causes, and organizations that you genuinely care about
• A disciplined, evidence-based investment strategy
• Tax-aware investment moves made throughout the year
• Planning strategies that maximize the value of vehicles and benefits available to you
• Proactive strategies that guide you towards the legacy you hope to leave
• And the list goes on!

So. Now what? By checking off all of the above, take a few minutes and think about those long-term goals, your family, your health.  What will you resolve to start doing or stop doing with this freedom? What can you do that will enhance your health span, your relationships, the odds that you’ll check off some bucket list items. Do that.

And while you do that, the Hill Investment Group team will continue to do our part to eliminate worry and deliver peace of mind. Our mission is to walk you towards a higher level of financial freedom. We thank you for making us part of your family. It’s great company to be in!

If you’re not a client and want to check off a few items on your New Year’s resolution list, call us or set up a time to get together…face to face or virtually. Cheers!