Personal Finances

Year End Financial Chores – 2020 Edition

It’s the end of another year. Here are some end-of-year financial “chores” that you might consider as we close out 2020 and head into 2021. Adjust W2 Withholdings I track my expected tax burden in a custom spreadsheet and tailor my withholdings to be as close to zero as possible. I’m okay with underwithholding, but… Continue reading Year End Financial Chores – 2020 Edition

Tax Avoidance · Tax Loss Harvesting

Tax Loss Harvesting Update – October 2020

A couple of years ago, I closed my Wealthfront account. After closing my account, I set out to DIY a tax loss harvesting system, modeled after Wealthfront. I’m tempted to call it my level 5 asset allocation strategy.  Building my own tax loss harvesting system has a few advantages, including: Avoid Wealthfront’s .25% management fee… Continue reading Tax Loss Harvesting Update – October 2020

Tax Avoidance

Bunching Charitable Contributions For Lower Taxes

Reviewing the 2017 changes to the federal income tax laws brought me back to a conversation I had years ago with a coworker, who I’ll call Jason. Jason suggested that alternating between taking the standard deduction and itemizing my deductions could reduce my taxes. Come again? To understand this tax optimization, let’s take a look… Continue reading Bunching Charitable Contributions For Lower Taxes