Gilbert Wealth Articles

Should You Use a Debit Card or Credit Card?

Debit Cards and Credit Cards are two easy ways to pay for everyday expenses. Nearly all businesses accept both in similar fashion but is there one that shines above the other? This article will explore the reasons why credit cards often provide more advantages than debit cards, making them a preferable choice for many consumers. Fraud Protection Debit Cards A fraudster who gets access to your debit card has access to spend all of the money in your checking account. While banks will typically reverse these charges, it can take some time to do so leaving you low or out…
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What is the IRA Aggregation Rule

The IRA aggregation rule is an IRS rule that stipulates that all traditional, SEP, and SIMPLE IRAs owned by an individual to be treated as one for tax purposes when calculating the taxable amount of an IRA distribution or conversion to a Roth IRA. This rule becomes particularly important during the Roth conversion process, as it dictates how the pre-tax and after-tax amounts in your IRAs are considered.The IRA Aggregation Rule has two primary implications:All Traditional, SEP, and SIMPLE IRA's are totaled for the purposes of distributions.Each distribution is a pro-rata distribution of pre-tax funds and basis. Cream in the…
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How to Pay Estimated Taxes

Paying estimated taxes is a crucial responsibility for self-employed individuals, freelancers, and those with income not subject to withholding taxes. Estimated taxes are typically paid quarterly to the IRS (Internal Revenue Service) and, in some cases, to state tax authorities to cover income tax and self-employment tax liabilities. Here's a guide on how to pay estimated taxes:  Who Must Pay Quarterly Taxes In most cases, you must pay estimated tax if both of the following apply. 1. You expect to owe at least $1,000 in tax (for 2024), after subtracting your withholding and refundable credits. 2. You expect your withholding and refundable…
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Charitable Lead Trust Basics

Charitable Lead Trusts (CLTs) are sophisticated financial instruments that serve dual purposes: supporting philanthropic endeavors and managing estate or gift taxes. As an estate planning tool, CLTs are particularly appealing to financially affluent individuals who are also committed to making significant charitable contributions.This article reviews the common uses, considerations, and pros and cons of implementing Charitable Lead Trust strategies. CLT strategies are complex and should involve a trusted attorney, accountant, and financial advisor. What is a Charitable Lead Trust? A Charitable Lead Trust is an irrevocable trust where the grantor (the person or persons who created the trust) donates assets…
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7 Reasons Your Group Disability Benefit Might Be Less Valuable Than It Seems

Disability insurance is a critical component of a comprehensive financial safety net, providing income protection in the event of an illness or injury that prevents one from working. Group disability insurance policies are a common benefit offered by employers, particularly larger employers.However, these policies often contain limitations and shortfalls that may not fully meet the needs of higher earners or those in upper management. Here, we explore key issues such as benefit caps, tax implications, occupation-specific coverage limitations, income covered, and portability concerns. 1) Benefit Caps Group disability insurance is typically structured as percent of income with the most often…
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How Much You Should Have in an Emergency Fund

Imagine you walk into a party and you see two groups of people deep in conversation. The first group is in a spirited conversation about the latest financial trend or fad that could lead to massive profits. The second group is talking about how much to have in an emergency fund.Which group would you join?If I were to guess, most people would likely choose the first group. But let's be honest, how many times is there a group of people talking about their emergency fund outside of a Dave Ramsey course. Not many.Despite its lack of pizazz, an emergency fund…
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29 Ways to Reduce Expenses without Reducing Lifestyle

Whenever a conversation about reducing expenses comes up, it inevitably leads to discussions around how many lattes you should drink, times you eat out per week, or other ways to reduce expenses by cutting costs. While that part of the conversation can have its place, the first place I like to start when reducing expenses are in those area's that don't impact your lifestyle one bit!Here is a list of 29 ways to reduce your expenses without reducing your lifestyle! Eliminating Junk Expenses 1. Stop Paying for Things You Don't Use!​ Take a look at each charge on your credit…
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Maximizing Your Wealth: The Importance of Understanding Pre-Tax and After-Tax Differences

When crafting a financial strategy, understanding the difference between pre-tax and after-tax net wealth is crucial. This knowledge not only impacts how you plan for retirement but also affects your current financial decision-making and tax planning. This article aims to demystify these concepts for beginners, providing a clear framework for comparing pre-tax and after-tax scenarios and their implications on personal wealth management. Understanding Pre-Tax and After-Tax Net WealthPre-Tax Net Wealth refers to the total value of all financial assets before any taxes are deducted. Taxes are calculated based on the type of asset and the person, or entity, recognizing the income…
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Mastering Tax Brackets for Better Financial Planning: How Progressive Tax Bracket Work

Understanding how the US tax system works is a critical component of providing effective advice as taxes play a notable role in many areas of your financial picture. Tax planning is one of those topics that is interwoven into many other financial planning topics. From understanding the tax implications of various savings strategies to the tax implications of estate distributions, having a solid understanding of how taxes work can help make better decisions.While nearly everyone files taxes every year (yes, there are a few who might not need to), many do not have an understanding of basic, foundational tax concepts. This…
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The Cardinal Rules of Travel Hacking and Other Guidelines

Maximizing the benefits of credits cards, aka Travel Hacking, can be an alluring activity. From the large sign on bonus' to the promises of free flights, free hotel nights, exclusive access to lounges, and more has spawned a generation of those looking to take every last opportunity to maximize the benefits they get through their credit cards. While there are certainly some benefits of travel hacking, it can also be done incorrectly leading to a worse financial situation. Credit cards lead to certain behaviors that, if not controlled, can leave people indebted at high rates jeopardizing their financial futures.  Cardinal Rule…
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