Blog Posts

By Marc C. Shaffer

With a few short days left in my 30s, I’ve been reflecting on the choices young adults make in their 20s and 30s that can either set them up for success in their mid-life decades or could potentially set them up for failure. Here are a few potential mistakes I would talk about with people in this age group.

There are lots of important numbers that relate to your financial affairs, and they come from many sources. In some cases, those numbers are annual limits that change each year. Other times, the figures do not often change, but are used frequently or you want to be able to easily access them when needed.

By Marc C. Shaffer

With a new year peeking around the corner, now is a good time to review the financial strategies that are working well for you, your goals for the future, and take inventory of where you stand financially.

Did you recently add a second comma to your bank balance? Has a recent financial event raised your net worth to the next level? It's an exciting time, whether it's the result of your long-term goals such as diligent saving and investing, the sale of a business, a windfall transfer of wealth, or a key promotion.

You're probably already considering how to protect and manage your wealth.

The federal estate tax threshold rose to $24.12 million in 2022 for married couples and $12.06 million for individuals, as part of the Tax Cuts and Jobs Act (TCJA). Like several TCJA provisions, the higher estate tax limit is due to sunset in 2025. Barring congressional action, the exemption amount will return to about $6.2 million, adjusted for inflation, in 2026. Similarly, the current 40% maximum gift and estate tax rate will increase to 45%.

For high-net worth individuals, this could influence wealth transfer strategies. Although this sunset is coming, the good news is that it's still a few years away.