Everything listed under: Tax Strategies and Analysis

  • Tax Cuts and Bitcoin Frenzy

    In an effort to inform our clients and our community, we have patiently waited to provide insight on the tax reform efforts likely to be passed this week. It appears the House and Senate have finally reconciled legislation that will be sent to the President for signature.Separately, it’s hard to ignore the meteoric rise of Bitcoin and the emergence of cryptocurrency as an asset class, or at least the investment world’s effort to try to turn it into an asset class. Accordingly, we tho...  Read More...

  • Welcome to Your 2016 Tax Season - Qualified Account Contributions

    Getting Started with this Important Piece of your Financial Puzzle…Once Again! Welcome to the beginning of a new tax season! While it may not be your favorite topic, taxes are an important aspect of our responsibility as citizens. Fulfilling that responsibility as prudently as possible is best accomplished by great teamwork among you, your Financial Advisor and your Tax Preparer.As you participate in the annual scramble to pull together requisite data to provide to tax preparers (or ...  Read More...

  • Trump Tax Look-Ahead

    As we enter into a new holiday season, we at Pauley Financial also enter into "Tax Planning Meeting Season". While you might be thinking, "Wow...I can hardly wait...", and it may sound like as much fun as going to the dentist (sorry Dentists!), we believe these meetings do provide substantive financial planning opportunities for our clients. And, while no one will argue that the family gatherings with eggnog and holiday cheer are indeed more fun, we have yet to hear any compl...  Read More...

  • September Volatility - A Reason to Panic?

    The answer to that question at least 99% of the time is resoundingly, "No!"  This time is no different. On Friday, the S&P 500 Index fell 2.4%; and, of course, we heard the usual exaggerations from the press about a possible “panic.” Perhaps, the media had merely been lulled into a sense of boredom as the markets have been relatively quiet over the summer and even into September – historically, the most volatile month for the markets. True, Friday w...  Read More...

  • Audit Triggers, Brackets, Phase-Outs: A Quick Guide to Some Key Numbers

    Is it tax season already? In truth, it’s always tax season. As we near the 4th quarter of the year, however, we are able to take a much closer look at the 2016 and 2017 tax picture for each of our clients.   Read More...

  • A Quick Look at the Presidential Candidates’ Tax Proposals

    As summer winds down and we head in to the final stretch of the 2016 presidential election, including the first one-on-one debate on September 26th, we thought we might provide some “facts-only” information regarding the candidates’ tax proposals. Though tax policies haven't received top billing in this year's presidential election dialogue, they are still part of the conversation. We all understand that promises and reality may not be conforming, however, what follows is at least what has been ...  Read More...

  • Tax Loss Harvesting - "Making Lemonade out of Lemons"

    When is the last time you cheered when the market dropped 5%?  At first blush, a market correction isn't intuitively a reason for a "Woohooo!"  Look again, however, to find that these downturns actually provide great opportunity.  While it's true that they offer an entry point for cash 'on the side' that may have been waiting to be invested, more importantly, they provide the conditions to aggressively Tax Loss Harvest (TLH) your portfolio.   Read More...

  • Case Study: Independent, Professional Woman Seeking Second Opinion

    Setting: Our client has been career focused since college. She set her sights on a leadership position within a software company, and has been working steadily to achieve that goal. Fortunately, she has made good decisions over time and has built a solid investment base as her career has progressed.   Read More...

  • Case Study: Original Owner of Healthcare Technology Company IPOs - Managing a Windfall

    Setting: Newly-married couple in their early 30’s originally met and worked in New York before moving to Austin where she joined a privately-held, healthcare technology company. She found the work to be both high energy and highly demanding. While the compensation was generous, they knew they wanted to build a home, start a family, and achieve financial freedom at an early age.   Read More...

  • Case Study: Cardiology Group Accepts Buyout Offer from Corporate Aggregator

    Setting: Our client is a mid- career Cardiologist that was a member and mid-level owner of a group practice in Texas. His group became the target of a corporate, practice aggregator (aided by the senior members of the group). Upon learning the terms, he presented the “deal” to us, (the option that was presented to his group practice), to help him evaluate the impact on the financial freedom plan we’d developed and that we were already implementing.   Read More...

  • Case Study: Software Company Takes on Strategic Investor - Planning for Liquidity Events

    Setting: Our involvement with this partial sale (~$40 million) of a software company began by building a defined contribution plan which improved their company’s talent recruitment and provided a tax optimized investment opportunity for both the business owners and employees. The positive result of these efforts resulted in the owners seeking personal finance integration and business planning as they contemplated a partial liquidity event by taking on a strategic investor. How Did We Help? As t...  Read More...

  • Case Study: All in the Family - Inter-generational Planning for Oil and Gas Legacy

    Setting: We were approached by a family seeking help to build an inter-generational plan given the substantial monthly oil royalty proceeds from their property in Texas. We partnered with their estate planning attorney and helped them engage an experienced tax firm as we analyzed their new-found wealth. How Did We Help?   Read More...

  • Is the IRS Calling?

    It’s that time of year again; spring flowers, spring cleaning and tax returns. We can now add to this seasonal list IRS phishing phone calls. We at Pauley Financial would like to bring your attention to a scam that a few of our clients and friends have directly experienced.   Read More...

  • Proposed Tax Increases and Optimizing Healthcare Dollars

    Proposed Tax Increases and Optimizing Healthcare Dollars In the wake of the East Coast’s most recent bout with old man winter and following a holiday season that seems like it was months ago, we have decided to take a quick “tactical” pause to pass on a few thoughts on some of recent news coverage of various tax increase proposals in President Obama’s State of the Union, and offer some insights on how to optimize your healthcare dollars. As always, we look forward to your feedback and hope you f...  Read More...

  • Food for Thought this Thanksgiving Week: Roth Conversions

    Food for Thought this Thanksgiving Week:  Roth Conversions Should you find yourself with some thinking time over the next week beyond the time gratefully spent with family, friends, food and football, the conversion discussion that follows may provide “food for thought” as a welcome break from more eating! The discussion? Roth Conversions.   Read More...

  • A Report on Social Security's Projected Solvency

    A Report on Social Security's Projected Solvency Communicating important financial matters that impact our clients and communities is a priority for our firm and is one of the primary focuses of our periodic thought pieces. As such, we have reviewed the recent report released by the Trustees of the Social Security Trust Funds for 2014. We will, of course, remain focused on this important planning factor, and adjust our clients’ financial plans as required to reflect the questionable solvency of ...  Read More...

  • Our Perspective on a Market Correction and the Emergence of the “Robo” Financial Advisor Service Model

    Our Perspective on a Market Correction and the Emergence of the “Robo” Financial Advisor Service Model Given the pedagogical origins of our firm, as our Managing Principal taught at both West Point and the University of Texas-Austin, we enjoy educating our community in the areas of financial planning and investments. We are monitoring and watching indicators climbing to new highs this year, volatility picking up, and technological advances challenging the financial planning industry and individu...  Read More...

  • Retirement's Social Experiment and Summertime Market Thoughts

    For those who have engaged with our firm in the last couple of years, it’s likely we have exchanged ideas about how the concept of retirement, as it was defined in the post-World War II era, is experiencing its own make-over. In the following text, we will walk through some of our thoughts on the topic, and then separately try to get in front of some of the market worries that may be catalysts for the inevitable market volatility that we are likely to see in the year ahead. With deference to Mit...  Read More...

  • Background on “myRA” – A New Federal Retirement Savings Program

    For those who chose to listen to or watch President Obama’s State of the Union Speech last month, you may recall his mentioning of the new “myRA” retirement savings program.  We thought it might be helpful to expound on what this program is, and how it relates to the array of other retirement savings options you already have--including, of course, traditional and Roth IRAs, 401(k) and/or 403(b) plans, etc. While many of you will not meet the eligibility requirements for th...  Read More...

  • Our Perspective on the Government Shutdown and its Consequences

    As you have undoubtedly heard by now, a U.S. government shutdown started on October 1st. The question for an increasingly skeptical investing public is: how will this affect the U.S.   Read More...

  • Market Glitches and Tax Efficient Retirement

    As we have been thinking through and putting the finishing edits on our periodic thought piece, the news of the NASDAQ market exchange’s halt in trading for 3 hours starting at 12:14 pm yesterday was unfolding. The industry, and NASDAQ in particular, has been grappling with the vulnerabilities of an increasingly digital world, and the incident is another black eye for the NASDAQ market, which you may recall botched the initial public offering of Facebook (ironically one of the companies that has...  Read More...

  • Tax Harvesting and the Fiscal Cliff

    Tax Harvesting and the Fiscal Cliff As we continue to follow our passion for helping others, we respectfully submit this article that sheds light on the strategy of actively taking investment gains and paying taxes (i.e. tax harvesting) in the face of the "fiscal cliff". Per our November 20th newsletter, the "fiscal cliff" refers to the series of tax and budget provisions that are all scheduled to take effect on midnight, December 31st.   Read More...

  • Year-End Planning Checklist

    2012 Year-End Planning Checklist The challenges of end-of-year planning have rarely been as complicated as they are this year due to the number of possibilities of what tax rates may look like next year. We may very well publish a 2012 v2.0 once the election outcome is known, and possibly even a 2012 v3.0 once the “lame duck” session of Congress has met. As 2012 begins to wind down, we look forward to tax planning meetings with each of our clients (and their accountants when appropriate) to exam...  Read More...

  • Retirement Readiness and Optimizing Social Security Benefits

    Retirement Readiness and Optimizing Social Security Benefits In the current Presidential election cycle, Social Security is a topic that has been central to the national dialogue. At Pauley Financial, we understand that most people who are planning for retirement are concerned about the stability of the Social Security program, and how they might make up for the shortfall it has the potential to leave behind. We typically trial a number of scenarios to help you plan in advance for, and optimize ...  Read More...

  • Market Rules to Remember

    As you know, at Pauley Financial we don't subscribe to the sensationalism of the financial press or prognostications about future market returns. We happened upon two of Bob Farrell's rules recently that reinforce some of the rationale behind this philosophy and approach. These rules may help to rationalize volatile sentiments that are increasingly rampant in investor behavior.  Additionally, new tax planning opportunities await us as "Obamacare" moves ahead (new Medicare tax).   Read More...

  • A Focus on IRAs

    Focus on IRAs Individual Retirement Arrangement is the technical IRS term for what most investors have come to call Individual Retirement Accounts or (“IRAs”). [Note: this article does not address SEP-IRAs – simplified retirement plans for the self-employed.] As the tax deadline of April 17th for 2011’s calendar year contributions approaches, we are writing to ask our clients and friends to focus on this annual opportunity before it passes again. Below are some lesser known attributes and compon...  Read More...