Behavioral Biases and Other Pitfalls to Beware of

Behavioral Biases

Nobel laureate Daniel Kahneman is arguably the world’s leading authority on human decision-making and cognitive biases that exist due to irrational judgement.  As part of his research on the mind, he created a list of the five variables that lead to suboptimal decision-making as follows: A complex problem Incomplete and changing information Changing and competing […]

What Can March Madness Teach us about Survivorship Bias: Luck vs. Skill


As I write this post, it is the second round of the 2023 NCAA tournament.  I proudly boast a near perfect bracket – having selected the winner of 29 of the first 32 games correctly. I check my bracket’s ranking; it sits at #845 in the world – out of the roughly 17.3 million brackets […]

What is the Mega Backdoor Roth 401(k)?

What is the Mega Backdoor Roth 401k

When it comes to making 401(k) contributions there are two sets of limits that an individual must be aware of – the first being the maximum deferral limit and the second being the total contribution (or 415) limit. The maximum deferral limit represents the total amount that you as an individual can contribute to your […]

What is a Roth Conversion and Why Should I do One?

What is a Roth Conversion and Why Should I Do One

Retirement Account Types When saving in a retirement account an investor has two options, to save money pre-tax or Roth. Pre-tax savings result in a tax deduction of the amount contributed each year (assuming you are not over any applicable income limits), tax-deferred growth of the investments, and an income tax bill each year as […]

What is the Augusta Rule and How can I use it as a Business Owner?

Augusta Rule

IRS Section 280A(g), better known as the “Augusta Rule”, is a special rule in the tax code that allows for the rental of a personal dwelling for less than 15 days without being taxed on the rental income.  Utilization of this rule in conjunction with a legitimate expense to your business can allow you to […]

401(k) Planning: How Maxing out your 401(k) too early Could Cost You


For most people, the biggest challenge in retirement saving is maxing out their 401(k) plan.  That said, for some – typically highly compensated employees – front-loading their 401(k) contributions can cost them some of their employer match. For context, let’s first examine the maximum deferral limits into a 401(k) in 2021: Maximum Contribution Limit: $23,000 […]

What are Required Minimum Distributions?

Required Minimum Distributions

As you embark on your journey toward financial independence and a secure retirement, it’s crucial to understand the intricacies of various retirement account rules. One such rule that comes into play is the Required Minimum Distribution (RMD). In this guide, we’ll unravel the mystery behind RMDs, explaining what they are, who they apply to, and […]

5 Smart Strategies to Reduce RMDs: A Guide to Optimizing Your Retirement Distributions

As investors approach the age of 73, the IRS mandates that they initiate Required Minimum Distributions (RMDs) from their retirement accounts, irrespective of their financial needs. For those who have diligently saved and find themselves facing larger distributions than necessary, exploring strategies to mitigate this impact becomes crucial. In this guide, we’ll delve into five […]

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