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Author: Hill Investment Group
Can You Imagine Your Future Self?
One of the big problems with setting goals is that we’re really bad at imagining our future selves. Remember what you imagined you’d be as an adult when you were a kid? I’m guessing there are some gaps between that dream and your current reality.
In the same way, there will be gaps between your current reality and your future self. And that’s partially because when we talk about goals, we’re often talking about long time frames. Consider retirement, for example. That could be upwards of 20 or 30 years from now. You can’t even imagine yourself at that age, let alone plan for it. That’s your parents, not you!
When we start talking about our distant future self, it’s easy to rationalize the decision to not do anything. Something 30 years down the road sounds an awful lot like something that can be started tomorrow.
In fact, our future self can often feel like some other annoying person constantly stealing heaps of fun from our current self. You may feel like you’re still 30, but if you just celebrated (or mourned) turning 60, it’s time to get real. Our future self will be here faster than we think. So how do we vividly connect with our future self to make better decisions today? Listen to the latest episode of TLV and consider writing a letter to your future self here.
Image of the Month
The Intersection of Longview & True North = Destiny. The newest HIG team member, Charles Kafoglis, took this image in Antioch, Illinois. Follow us on Instagram to see more shared images from our team, or tag us in your own.
The Good, The Bad, and The Ugly of Projected Tax Implications
There has been a lot of talk about the House Ways and Means Committee’s tax proposal. Whether in The Wall Street Journal or from Take the Long View podcast guest, John Jennings’ break down of the good, the bad, and the ugly, speculation is all over the place. As a client of Hill Investment Group, you can rest assured that we are planning for all of the potential iterations.
Below we’ve reviewed the most relevant points for our clients. Have questions? Feel free to reach out to us to discuss how the potential changes may affect you. Set up a time to talk here.
| House Ways and Means Tax Proposals | Current Law | |
| Top Income Tax Bracket | Increase the top individual income tax bracket to 39.6 percent. This new top bracket would start at taxable income levels of $400,000 for single filers, $450,000 for joint filers. Effective 1/1/2022. | The current top tax rate is 37 percent on taxable income over $523,600 for single filers and $628,300 for joint filers. |
| Capital Gains | Increase the statutory capital gains rate to 25 percent. Effective 9/13/2021, subject to a binding contract exception. | The current top statutory capital gains rate is 20 percent. |
| Estate and Gift Tax | Reduce to an inflation-adjusted $5 million. Effective 1/1/2022. | Inflation-adjusted $10 million ($11.7 million in 2021). |
| Roth Conversion | Eliminate Roth conversions for both IRAs and employer-sponsored plans for single filers with taxable income over $400,000 and joint filers with taxable income over $450,000. | A person can convert their eligible IRA assets to a Roth IRA regardless of income. |
Have questions? Feel free to reach out to us to discuss how the potential changes may affect you. Set up a time to talk here.
