Dollar Wise Podcast

Welcome back to the Dollar Wise Podcast. Jason Gabrieli is joined by Andrew Barnhardt from the HFM team as they explore tax strategies related to charitable giving, focusing on the benefits of Qualified Charitable Distributions (QCDs) from IRAs. The discussion covers how changes in the tax code impact charitable deductions, who can benefit from QCDs, and key considerations when planning your charitable contributions. This episode is designed to help listeners optimize their charitable giving while maximizing tax benefits.

Tune into this episode to also learn:

• How changes in the standard deduction impact your charitable contributions.
• The eligibility criteria and benefits of making a Qualified Charitable Distribution.
• Strategic planning for minimizing required minimum distributions (RMDs) through charitable giving.
• Common pitfalls and best practices when executing QCDs.

What we discussed

• [00:02:00] The impact of the Tax Cuts and Jobs Act of 2017 on charitable contributions and tax deductions.
• [00:03:00] Introduction to Qualified Charitable Distributions (QCDs) and their benefits.
• [00:05:00] Eligibility for QCDs and the age requirements for taking RMDs.
• [00:07:38] How QCDs can satisfy RMDs and reduce taxable income.
• [00:09:00] Planning strategies for using QCDs to reduce future RMDs.
• [00:11:16] Important considerations and limitations when using QCDs.

3 Things To Remember

1. Qualified Charitable Distributions (QCDs) allow you to give to charity while avoiding the taxes typically associated with IRA withdrawals.
2. QCDs can be used to fulfill required minimum distributions (RMDs) without increasing your taxable income.
3. Always ensure QCDs are sent directly to the qualified charity to satisfy IRS requirements and keep detailed records for tax purposes.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Connect with Andrew Barnhardt: LinkedIn

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• Key steps to take immediately after a loved one passes away.
• The role of a funeral representative in estate planning.
• Differences between probate and non-probate assets.
• Practical tips for managing estate accounts and distributions.

• [00:02:00] Immediate steps to take after a death, including waiting periods and obtaining death certificates.
• [00:04:13] Essential documents for estate planning: wills, powers of attorney, and HIPAA releases.
• [00:07:56] Differentiating between probate and non-probate assets and their impact on estate administration.
• [00:10:38] Opening an estate account and managing the deceased's assets.
• [00:13:22] Filing inheritance tax returns and handling the estate's financial obligations.
• [00:16:44] Preparing executors for their roles and ensuring open communication with beneficiaries.
• [00:19:22] The importance of updating beneficiary information and having detailed records.

1. Always have essential estate planning documents in place, including a will and powers of attorney.
2. Understand the difference between probate and non-probate assets to streamline the estate process.
3. Open communication with your executor and family members can significantly ease the estate administration process.

Useful Links

Connect with Jason Gabrieli: LinkedIn

Connect with Brittany Tedesco : [email protected]

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• The critical steps in the probate process and why timely action is crucial.
• How to manage and minimize estate and inheritance taxes.
• The role and responsibilities of an executor in estate management.
• Tips for preparing and organizing financial documents before death.

• [00:01:19] Introduction to the sensitive topic of financial steps after death.
• [00:02:38] The role of an accountant in managing estates.
• [00:06:37] The probate process overview and key documentation needed.
• [00:10:43] Handling ongoing expenses and income after someone passes away.
• [00:16:09] Differences between estate and inheritance taxes.
• [00:24:07] Best practices for preparing and organizing financial documents.

1. Understanding the probate process helps in managing estate complexities efficiently.
2. Proper documentation and early involvement of professionals can save significant tax expenses.
3. Executors must be diligent in their fiduciary responsibilities to ensure fair and legal asset distribution.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Connect with Brian Masessa: LinkedIn

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• The inspiration and development behind the GravyStack app
• Practical steps for parents to teach their kids about money
• The importance of creating a family mission statement and financial values

• [00:02:27] Financial education and entrepreneurship for kids
• [00:04:29] Teaching kids about money at home vs. school
• [00:06:03] Practical tips: No allowance, earning through chores
• [00:09:11] Integrating GravyStack methodologies into family life
• [00:11:07] Starting financial education early
• [00:12:01] Long-term vision for GravyStack and financial literacy impact
• [00:14:13] Practical steps for parents to get started

1. Kids learn about money through observation and practical experience.
2. Stop giving allowances; instead, offer opportunities to earn.
3. Create a family mission statement and discuss financial values regularly.

Useful Links

Connect with Jason Gabrieli: LinkedIn

Connect with Chad Willardson: LinkedIn

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• Why retirement planning is highly personalized and varies significantly from one individual to another.
• The impact of personal spending and lifestyle choices on retirement needs.
• Strategic approaches to reduce overhead costs and enhance financial readiness for retirement.

• [00:01:01] The complexity of determining the necessary retirement savings.
• [00:03:43] Strategies to reduce overhead and prepare financially for retirement
• [00:06:22] Implications of early retirement and maintaining lifestyle with reduced income.
• [00:09:57] The importance of a detailed personal budget or spending plan when planning for retirement.

1. Retirement needs are highly personalized—what works for one might not work for another.
2. Reducing monthly overhead can significantly impact the amount needed for a comfortable retirement.
3. A detailed and realistic spending plan is crucial for effective retirement planning.

Useful Links

Connect with Jason Gabrieli: | LinkedIn

Connect with Catherine Allen-Carlozo | LinkedIn

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• The psychological factors influencing our financial decisions.
• The historical returns of cash, bonds, and stocks over 30 years.
• The potential risks of relying on high-yield savings accounts for long-term goals.

• [00:01:17] The current trend of keeping money in high-yield savings accounts.
• [00:04:07] Behavioral finance and the fear of losses over potential gains.
• [00:07:21] Historical returns of cash, bonds, and stocks over 30 years.
• [00:10:50] The importance of aligning cash holdings with financial goals.
• [00:14:40] How to balance short-term and long-term financial objectives.

1. High-yield savings accounts offer short-term benefits but might not be ideal for long-term goals.
2. Investing in diversified assets, like bonds and stocks, has historically provided better returns over time.
3. Aligning cash holdings with financial objectives is crucial for effective financial planning.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Listen to EP.39 “Let’s Talk About Cash” - Apple | Spotify

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Jason Gabrieli and Tyler Reedman, both CERTIFIED FINANCIAL PLANNERS at HFM Investment Advisors, dispel common misconceptions about 401(k) contributions. They dissect the difference between matching the employer’s contribution and maxing out a 401(k). They discuss contribution limits and strategies to increase contributions incrementally so you can optimize your savings. This episode is a must-listen for anyone looking to take full advantage of their 401(k) potential.

• The real meaning of 'maxing out' your 401(k) and common misconceptions.
• How automatic escalation can effortlessly boost your 401(k) savings.
• The impact of choosing between Roth and pre-tax contributions on your take-home pay.

• [00:01:22] Misconceptions about maxing out 401(k) contributions and the actual limits.
• [00:06:09] Insights from Vanguard's 'How America Saves' report and average saving rates.
• [00:08:41] The concept of reverse budgeting and its impact on savings habits.
• [00:11:00] The benefits of automatic escalation in 401(k) contributions.
• [00:13:32] The importance of focusing on contribution rates over market performance.

1. Maxing out your 401(k) involves understanding and utilizing the actual dollar limits, not just the employer match.
2. Incremental increases in contributions can significantly impact your retirement savings without overwhelming your current finances.
3. Understanding the nuances between Roth and pre-tax contributions can optimize your long-term savings and tax benefits.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

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Check out our Financial Wellness Program – HFM Ignite

When you retire, do you want to stay in New Jersey? Jason delves into the common concerns about retiring in New Jersey, such as the state’s reputation for high taxes and living costs. He also covers recent changes and programs like the Senior Tax Freeze and the Stay NJ program that make New Jersey a more appealing retirement destination. Lastly, he discusses the nuances of property and income taxes, providing valuable insights for those considering retirement in the Garden State.

• How recent tax reforms in New Jersey benefit retirees, particularly concerning property taxes.
• The implications of the Senior Tax Freeze and Stay NJ program for property tax relief.
• Key facts about New Jersey's income tax exclusions for retirement income.

• [00:01:00] Debunking myths about retiring in New Jersey due to high costs.
• [00:02:15] Understanding the Senior Tax Freeze program benefits for retirees.
• [00:04:23] Introduction to the Stay NJ program and its potential for senior citizens.
• [00:06:28] Insights into New Jersey's income tax benefits for retirement income.
• [00:10:02] The significant shift in New Jersey’s estate tax laws and its impact.

1. New Jersey has made significant strides in becoming a more retirement-friendly state through various tax benefits.
2. Programs like the Senior Tax Freeze and Stay NJ aim to alleviate the property tax burden for seniors.
3. Understanding New Jersey’s unique tax exclusions and laws can benefit retirees financially.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

Home improvements, purchasing electric vehicles, and installing a qualified vehicle refueling and recharging apparatus at your home could entitle you to a tax credit. Jason reviews the different types of credits, their requirements, and the importance of consulting a tax advisor to optimize these opportunities to integrate them into your financial plan.

• Specifics of energy-efficient home improvement credits for installations like doors, windows, and HVAC systems.
• Details of the residential clean energy credit for adding renewable energy sources to your home.
• Insights into tax credits for purchasing new and used clean vehicles, including EVs and hybrids.
• Understanding the alternative fuel refueling property tax credit for installing EV charging stations.

• [00:00:24] Introduction to clean energy tax credits
• [00:01:39] Home energy improvements and applicable tax credits
• [00:03:15] Residential clean energy credits for renewable energy installations
• [00:05:07] Tax credits for purchasing new and used clean vehicles
• [00:09:26] Credits for installing vehicle refueling and recharging stations

1. Clean energy tax credits offer financial incentives for eco-friendly home improvements and vehicle purchases.
2. Understanding the specifics of these credits is crucial for maximizing benefits.
3. Consultation with a tax advisor is essential for integrating these credits into your financial strategy.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

Are you enrolled in a Health Savings Account? (HSA) In addition to being used for immediate medical expenses, it provides tax advantages and can be used as an additional retirement tool. Jason reviews the requirements for an HSA, such as enrolling in a high-deductible health plan and the potential to invest contributions for long-term growth. He also introduces the concept of a Limited Purpose Flexible Spending Account (FSA), which can complement an HSA by covering specific health expenses like dental and vision care.

• How HSAs can be strategically used for both immediate and long-term health expenses
• The criteria and benefits of enrolling in a high-deductible health plan to qualify for an HSA
• The advantages of investing in HSA contributions to build additional retirement savings
• Understanding the role and benefits of limited-purpose FSAs in conjunction with HSAs, specifically for dental and vision expenses

• [00:01:14] Eligibility criteria for HSAs
• [00:02:12] Using HSAs as an investment tool for retirement.
• [00:03:16] Strategy for utilizing HSAs for future health expenses.
• [00:05:07] Eligibility and usage of Limited Purpose FSAs

1. HSAs offer tax advantages and can be used for immediate and future health expenses.
2. Investing in HSA contributions can provide additional retirement savings.
3. Limited Purpose FSAs are valuable for covering specific health costs, complementing HSAs.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite