ThimbleberryU

Today, Amy Walls of Thimbleberry Financial sits down with Jag to talk about tracking basis on your residence, and why it's important.   Simply put, the basis is what you paid for a property.  More complex, you'll want to track changes, such as improvements and depreciations.  This will have a tax impact when the property sells.

As a property owner, you have an exemption on the gain in basis between your purchase and your sale of a property.  That's $250,000 for single and $500,000 for joint.  Here's an example for a single person.  If you bought a home for $344,000 but sold i for $565,000, that's a gain of $221,000.  That's within the $250k limit- no tax implications.

This math can be complicated by other scenarios, including:

• Staying in your home longer than expected
• DIY improvements vs. using a contractor vs. somewhere in between
• Passing of a spouse (you have two years from date of death to use the joint $500k exemption)

Amy and Jag cover what the IRS defines as capital improvements to a home (that would change the basis) and dive into another specific example.

For a married couple, a home is purchased by a married couple for $650,000 and sold for $1,300,000.

• Without tracking the change in basis, that's a gain of $650,000, over the limit of $500k. The remaining $150k would be subject to capital gains taxes.
• If they did $220,000 of improvements to the house, the original $650k basis is now $870k.  The $1.3 million sale price is only $430k in gains, within the exemption, no capital gains taxes due.

It's important to track any and all capital improvements to your home.  And track them with your taxes every year, so you're not scrambling to find  years - or decades - worth of records when you're ready to sell your property.  

For questions about  anything related to your financial future, reach Amy Walls and her team at Thimbleberry Financial at (503) 610-6510, or on the web at https://thimbleberryfinancial.com/

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

The ThimbleberryU Podcast is produced by JAG Podcast Productions - https://jagpodcastproductions.com/

Today, Amy Walls of Thimbleberry Financial sits down with Jag to talk about sabbaticals.  This is something she's seeing more often, particularly with her tech clients.  We cover the A-Z of taking a sabbatical in this episode, including:

1. Is it really possible to create your own sabbatical? 
2. What should be considered in deciding to create your own sabbaticals?
3.  What does the financial impact of a sabbatical look like?
4. If you take a sabbatical, how do you explain a 6 month breaks in your employment history?

For questions about  anything related to your financial future, reach Amy Walls and her team at Thimbleberry Financial at (503) 610-6510, or on the web at https://thimbleberryfinancial.com/

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

The ThimbleberryU Podcast is produced by JAG Podcast Productions - https://jagpodcastproductions.com/

Discussing aging is not an easy conversation to have, but it's an important one.  Today, Amy Walls of Thimbleberry Financial joins JAG to jump into this topic.

Are these questions for the retirement years, or for earlier?

How do you define aging and the parameters of the discussion?

What do I need to know to talk about this with my spouse/partner?

Once you sort through these ideas, what's next?

What resources are available to folks struggling with these conversations?

For questions about  anything related to your financial future, reach Amy Walls and her team at Thimbleberry Financial at (503) 610-6510, or on the web at https://thimbleberryfinancial.com/

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

The ThimbleberryU Podcast is produced by JAG Podcast Productions - https://jagpodcastproductions.com/

Amy Walls is just back from a family vacation to Florida, and her time there really got her thinking about what she'd like her retirement to look like some day.

It's no secret that Americans spend much more time planning out our vacations than our retirement.  But you can take aspects of your vacation and see if it has long-term appeal for you in the longest vacation of your life - retirement.   For example, Amy's not a fan of Florida's alligators, but there's appeal in living in a place with no state income tax.

There are other more practical considerations too.  Do you want to live in a 55+ community with other retirees? Do you want to live near the ocean? Would a lake suffice? Amy and Jag break down some of the variables you cant think about while on vacation.

For questions about  anything related to your financial future, reach Amy Walls and her team at Thimbleberry Financial at (503) 610-6510, or on the web at https://thimbleberryfinancial.com/

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

The ThimbleberryU Podcast is produced by JAG Podcast Productions - https://jagpodcastproductions.com/

For Amy Walls, life insurance is personal.  Today, she explains what she went through as a child that informs her feelings on the topic today.

For many, life insurance can be complicated.  We break it all down for you today, starting with temporary (term) insurance and permanent life insurance - and the different categories within it.

As with most types of insurance, we'll have needs at different points in our lives, depending on income, assets, and what needs to be protected.

Within permanent types of insurance, Amy explains the differences between Whole Life Insurance, Universal Life Insurance, and Variable Universal Life Insurance policies.  They can all be great tools, but very dangerous if used improperly.

Remember, a life insurance policy isn't about taking care of yourself.  It's about taking care of those you care about.

Finally, Jag asks Amy about those who may not need life insurance.

For questions about  anything related to your financial future, reach Amy Walls and her team at Thimbleberry Financial at (503) 610-6510, or on the web at https://thimbleberryfinancial.com/

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

The ThimbleberryU Podcast is produced by JAG Podcast Productions - https://jagpodcastproductions.com/

It's hard to believe Amy and Jag have been doing this podcast for two and a half years!  We've spent countless episodes talking about your financial future, and the psychology behind investing.

Today, we wanted to take a moment to introduce the Thimbleberry Financial team, and how they will work with you to manage your money.

Amy and her team focus on six core values.  She explains what each means and translates to.

1. Integrity
2. Personal
3. Predictable
4. Simplicity
5. Focused
6. Control

While not intentionally created this way, the Thimbleberry team is all female.  It starts with Amy as the advisor (although we will have a second taking her CFP exam soon).  As the firm grows, we will develop service teams to deal with clients in specific sectors, including a paraplanner, operations specialist, and of course our office manager. This will enable us to super-serve our clients, while not overwhelming them with too many people to talk to.   We meet almost all our clients virtually and that will likely continue. 

As a CFP (Certified Financial Planner), Amy also is held to a fiduciary standard and must act in the best interest of her clients.  She clears up some confusion around this term and explains what it means for you.

Finally, Jag asks a question that's been on his mind for the last 30 months.  Where did the name Thimbleberry Financial come from?  You'll like Amy's answer.

For questions about  anything related to your financial future, reach Amy Walls and her team at Thimbleberry Financial at (503) 610-6510, or on the web at https://thimbleberryfinancial.com/

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

The ThimbleberryU Podcast is produced by JAG Podcast Productions - https://jagpodcastproductions.com/

Roth accounts are an excellent vehicle for tax diversification and planning your financial future.  However, there are some changes to these laws being discussed in Congress.  Today, Amy Walls of Thimbleberry Financial breaks down current Roth options, and what might change.

First, we look at the tax triangle - and the three "corners" of assets, based on tax status.  Next Amy explains the  5 ways to contribute to a Roth account:

• Direct contributions
• Employer sponsored Roth plans (401k, 403b, and 457 plans)
• Converting Pre-Tax money to a Roth IRA
• Converting After-Tax money to a Roth IRA (back door Roth)
• Converting After-tax 401k money to Roth 401k (Mega back-door Roth)

Amy explains which of these strategies are could to be protected, which could change, and which could be eliminated altogether. If these changes happen, what options will we have available?  Finally, Amy explains why she's advising to hold off on Roth conversions at present.

For questions about  anything related to your financial future, reach Amy Walls and her team at Thimbleberry Financial at (503) 610-6510, or on the web at https://thimbleberryfinancial.com/

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

The ThimbleberryU Podcast is produced by JAG Podcast Productions - https://jagpodcastproductions.com/

Amy and Jag have talked in previous episodes about the importance of saving money.  But a recent conversation that Amy had with her 14-year-old daughter prompted us to re-examine this idea.

Previously. Amy's daughter hasn't been concerned with money. She's always enjoyed artistic pursuits, but a recent interest in quilting had her needing supplies.  So Amy started breaking down what investing could look like, if her daughter got a part time job and saved money in addition to spending money.  Wait until you hear these numbers!

Now, it's not always the right time to save and invest.  This of course depends on your individual situation and time horizon. 

For questions about  anything related to your financial future, reach Amy Walls and her team at Thimbleberry Financial at (503) 610-6510, or on the web at https://thimbleberryfinancial.com/

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

The ThimbleberryU Podcast is produced by JAG Podcast Productions - https://jagpodcastproductions.com/

Horrible things are happening in Ukraine, and we aren't about to lose sight of that.  But, given that this is a financial podcast, today Amy Walls from Thimbleberry Financial breaks down what your level of financial worry should be over this conflict.

We look at the criteria involved for you to actually worry about something, and how much of that applies here, depending on your individual situation. 

Next, Amy talks about what the war in Ukraine could mean for the future of the market. And while we don't have a crystal ball, Amy provides some historical data that can inform opinions and predictions.  This includes what the market did after Pearl Harbor and 9/11.

Before you worry, know your status - be sure to have a clear picture of your financial situation. And if you don't know, find out!

Differentiate between what you can control and what you can't.  And please avoid "market-tainment" shows - designed to play on your emotions.

Finally, there may be opportunities here, from rebalancing, to Roth conversions, to defense and energy stocks.

For questions about any of this, or anything related to your financial future, reach Amy Walls and her team at Thimbleberry Financial at (503) 610-6510, or on the web at https://thimbleberryfinancial.com/

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

The ThimbleberryU Podcast is produced by JAG Podcast Productions - https://jagpodcastproductions.com/

Yes, "mindfulness" has become a buzzword in today's society.  But mindfulness is an important piece of managing your money.  It involves observing yourself and your habits without judgement.  Today, Amy and Jag dig a little deeper into mindfulness and money.

Amy doesn't want to manage budgets for her clients. She wants to create spending plans. The difference? Mindfulness. To borrow a page from Marie Kondo, spending should be focused around what creates joy.

In a previous episode, we discussed the Aesop's Fable about the ant and the grasshopper.  Ants are savers, and grasshoppers are spenders.  Which are you?  Amy discusses mindful strategies for both sets of personalities. And Jag shares a story about how he (the grasshopper) and his wife (the ant) have found ways to help each other and compromise.  And Amy shares some additional tips as well.

Finally, mindfulness can expand into your investing - we look at socially responsible investing, ESG investing, and impact investing.

For questions about mindfulness and money, or anything related to your financial future, reach Amy Walls and her team at Thimbleberry Financial at (503) 610-6510, or on the web at https://thimbleberryfinancial.com/

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

The ThimbleberryU Podcast is produced by JAG Podcast Productions - https://jagpodcastproductions.com/