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The Once-in-a-Lifetime IRA Transfer to an HSA

By Keith Taxguy / April 28, 2019 / 9 Comments

The concept is rather simple. The benefits are fairly small, but worth it if your situation dictates. Those facing large RMDs and those seeking to turn a small portion of their tax-deferred tIRA into tax-free growth in an HSA will find the most value.

Now I need to make a confession. When I first saw the question in the private Facebook group I thought the person posting was smoking something. I never heard of such a tax strategy (or it went in this ear and out the other.) I had to look it up to believe.

If you plan on using this strategy don’t get mad at your tax professional if they never heard of this. Just tell them to go to their software’s Special Situations tab on the 1099-R screen. All they need to do is add one simple number (the amount transferred to the HSA up to the contribution limit).

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High Interest Savings Account Few Use

By Keith Taxguy / April 21, 2019 / 18 Comments

Whenever I attend a conference I look for things the crowds miss. The mainstream information is still absorbed, but there always seems to be something most people pass that contains a lot of potential.

Last year at FinCon such an opportunity screamed to me. Several companies were offering 5% on savings with few strings attached. One was geared toward military people, but had some fees and restrictions I felt uncomfortable with.

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Finding Under-Valued Stocks

By Keith Taxguy / April 14, 2019 / 11 Comments

Jack Bogle gave us the index fund. Warren Buffett has said most people should put their money into index funds.Personal finance bloggers—especially in the FIRE* community—spout “index fund” like it’s a nervous tick. And you might have noticed this blog has the same nervous tick.Some are worried about all this index fund investing. The concern is index funds will control so much of the market that it will lose its efficiency. I remember the same concerns in the 1990s when I was a stock broker about mutual funds in general, most of which were actively managed.Index funds will not break the market any more than actively managed mutual funds did. For one, there will still be plenty of people investing in individual stocks. And the hedge fund guys will do their share providing liquidity.

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How to Use this Blog to Earn a Quick $1 Million

By Keith Taxguy / April 7, 2019 / 6 Comments

You might notice the bloggers spouting the same gibberish get picked up by mass media outlets while your favorite blog (that had better be this one!) gets nary a mention. The reason for this is people prefer the familiar to an honest answer that could make a real difference.

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When Adding to Your Retirement Plan is a Bad Idea

By Keith Taxguy / March 31, 2019 / 35 Comments

Because a lot (most) of your gains are deferred anyway with an index fund and the tax rate is lower when you do sell (compared to traditional retirement accounts) and there are no RMDs or early withdrawal penalties, non-qualified accounts should play a central role in the portfolio of most investors.

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The Benefits and Pitfalls of Tax Outsourcing

By Keith Taxguy / March 24, 2019 / 21 Comments

The tax profession is aging. Attracting new people to the profession is difficult because it lacks the glamour of other professions. But sit in any public forum and mention you are a tax professional and you will be inundated with tax questions and offers to take them on as new clients. The tax profession is a good field with ample opportunity to do good, but few even consider accounting or tax as a career option.

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Recovering From Financial Mistakes Like the Wealthy

By Keith Taxguy / March 17, 2019 / 9 Comments

Regardless how experienced or educated you are you will still make financial mistakes, some of them humdingers. Personal finance blogs and media outlets frequently share basis financial mistakes to avoid: spend less than you earn, invest in index funds, avoid debt and so forth. All this is good advice, but it goes a lot deeper than this.

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