Details Are Part of Our Difference
Embracing the Evidence at Anheuser-Busch – Mid 1980s
529 Best Practices
David Booth on How to Choose an Advisor
The One Minute Audio Clip You Need to Hear
The Good, The Bad, and The Ugly of Projected Tax Implications
There has been a lot of talk about the House Ways and Means Committee’s tax proposal. Whether in The Wall Street Journal or from Take the Long View podcast guest, John Jennings’ break down of the good, the bad, and the ugly, speculation is all over the place. As a client of Hill Investment Group, you can rest assured that we are planning for all of the potential iterations.
Below we’ve reviewed the most relevant points for our clients. Have questions? Feel free to reach out to us to discuss how the potential changes may affect you. Set up a time to talk here.
| House Ways and Means Tax Proposals | Current Law | |
| Top Income Tax Bracket | Increase the top individual income tax bracket to 39.6 percent. This new top bracket would start at taxable income levels of $400,000 for single filers, $450,000 for joint filers. Effective 1/1/2022. | The current top tax rate is 37 percent on taxable income over $523,600 for single filers and $628,300 for joint filers. |
| Capital Gains | Increase the statutory capital gains rate to 25 percent. Effective 9/13/2021, subject to a binding contract exception. | The current top statutory capital gains rate is 20 percent. |
| Estate and Gift Tax | Reduce to an inflation-adjusted $5 million. Effective 1/1/2022. | Inflation-adjusted $10 million ($11.7 million in 2021). |
| Roth Conversion | Eliminate Roth conversions for both IRAs and employer-sponsored plans for single filers with taxable income over $400,000 and joint filers with taxable income over $450,000. | A person can convert their eligible IRA assets to a Roth IRA regardless of income. |
Have questions? Feel free to reach out to us to discuss how the potential changes may affect you. Set up a time to talk here.
Is Financial Infidelity a Strategy?
“What’s clear… is that competing ways of spending—where one partner spends freely and the other doesn’t spend freely enough—can lead to serious conflict.” Hal Hershfield
At HIG, a considerable part of our job is helping couples discuss their finances openly and create their family’s plan together. Sounds simple – but we have seen the benefits firsthand. Our clients say having a third party help navigate this tricky topic can have a massive impact on their self-reported relationship satisfaction, as well as the likelihood of achieving their financial goals.
If you’re curious how you can level up your financial harmony at home, check out this piece by Hal Hershfield, courtesy of our friends at Avantis (an evidence-based mutual fund and ETF investment firm). Hal is a Professor of Marketing and Behavioral Decision Making at UCLA’s Anderson School.
Quote of the Month – Jason Gay
Long-term readers know we read The Wall Street Journal regularly. Those same readers know we are after something more than the earnings reports and IPO news – enduring wisdom when we can find it. In particular, we’re fans of columnist Jason Gay. His latest piece is a masterful application of satire. In it, he’s poking fun at how frenetic today’s world is training us to become. The subtext? Be a contrarian. Slow down. Pay close attention. Reflect. Then respond. In short, take the long view. See what you think.
“Freaking out—as in freaaaaaaaking ouuuuttt!!!—is now an industry and national pastime, as routine as a lakeside sunrise over Door County. Perspective, equilibrium, inner calm—those are the habits of suckers. Today we freak out about the slightest disruptions to our daily routines; We freak out about cynical provocations on social media; We freak out over a daily buffet of micro-controversies so meaningless they’re usually forgotten within 36 hours… Nobody gets clicks and famous for taking a long view; hell has to be served in a handbasket, preferably with a clever baiting headline. If you haven’t freaked out about at least three things you’ve read by 9 a.m., you’re not doing it correctly.”
