At Hill Investment Group, we’ve always believed that financial success is more than just numbers on a spreadsheet—it’s about creating a life of order, focus, and peace of mind. Years ago, we commissioned a graphic that powerfully encapsulates this transformation. On the left, you see a person overwhelmed by chaotic systems, piles of disorganized papers, and a lack of clear direction—a visual metaphor for the financial stress that many people endure every day. On the right, that same person is calm, collected, and confident, having achieved clarity, order, and control over their financial life. Peace of mind. At last.

This transformation is at the heart of what we do every day for our clients. We help them move from financial chaos to financial freedom by focusing on what we call the 4 C’s, the cornerstones of our advice:

1. Competence: Our expertise in evidence-based investing, financial planning, holistic asset allocation, investment selection and monitoring, and risk management ensures that every decision is informed and every strategy is sound.
2. Coaching: We guide our clients to set realistic expectations, manage emotions and biases, and stick to their long-term goals, providing objective feedback and a trusted second opinion.
3. Convenience: We save our clients time with personalized service, coordinated efforts with trusted professionals, and secure technology that integrates every aspect of their financial life.
4. Continuity: Our approach is designed to support clients through life’s transitions, ensuring that their plans are adaptable and their legacy is preserved across generations.

At Hill Investment Group, we believe in helping you take the long view—transforming the complexities of your financial life into something simple, clear, and manageable. We strive to replace stress with confidence, uncertainty with clarity, and disorder with harmony.

This before-and-after image isn’t just a reflection of what we do—it’s a reminder of the peace of mind that comes with working with a firm that’s committed to your financial well-being, both now and in the future.

The Power of Personal Service

At Hill Investment Group, exceptional service is more than just a hallmark of our brand— it is the foundation upon which we have built our firm. While “service” can often be ambiguous, we have made it our mission to define, hire for, and reward this essential aspect of our business. Like all organizations, we are not perfect. Still, we strive to be intentional in building on our core service values: fast (be available), friendly (be warm and upbeat), and ownership (take responsibility).

Fast: Be Available

In today’s fast-paced world, being available and responsive is crucial. One small example: when you call our offices during regular business hours, a human being will answer the phone in two rings or less. Our entire team is committed to being accessible and ensuring that we provide timely and practical support when you need us. This level of availability is not just about promptly answering calls or emails; it’s about anticipating and proactively addressing your needs.

Friendly: Be Warm and Upbeat

A friendly demeanor goes a long way in building trust and long-lasting relationships. At Hill Investment Group, we hire individuals who naturally exude warmth and positivity. A welcoming attitude can make all the difference, especially during moments of uncertainty or stress. We aim to create an environment where you feel comfortable and valued, knowing we genuinely care about your financial well-being. For example, if you could see how our team reacts to the milestones and occasional setbacks that impact clients’ lives, you would see folks who care as if they have your same last name.

Ownership: Take Responsibility

Taking ownership means more than just completing tasks— it’s about seeing them through to successful outcomes. Our team members are encouraged to take personal responsibility for the projects and client interactions they handle. This sense of ownership ensures that we are all committed to delivering the best possible service from start to finish. We take pride in our work and are dedicated to achieving the highest standards for our clients. For example, you should never hear a Hill person say, “I’m not sure; that’s not my department; I’ll have to transfer you.”

A Foundation in Service Training

Early in my career, I had the opportunity to train service team members, which profoundly influenced my understanding of exceptional service. This experience has been meaningful in shaping our approach at Hill Investment Group. A significant part of our service philosophy is informed by Danny Meyer and his concept of enlightened hospitality, which emphasizes the difference between service (the delivery of the thing) and hospitality (how you feel). You can learn more about this philosophy and our conversation in my podcast episode with Danny Meyer.

Learning from Others

While we strive for excellence, we also recognize that there is always room for improvement. Recent discussions around service standards at some of the largest firms in our industry have provided valuable lessons. For example, Vanguard, known for its die-hard customer base, has faced significant challenges with service quality, as highlighted in this Wall Street Journal. Additionally, the classic piece on Goldman Sachs’ focus on sales over service is a cautionary tale about prioritizing client needs above all else. You can read more about it in this New York Times article.

Our Commitment

We are dedicated to continually refining our service standards at Hill Investment Group. We value your feedback and are always looking for ways to enhance your experience with us. By focusing on being fast, friendly, and taking ownership, we aim to provide you with the exceptional service you deserve, and that differentiates us from others. 

To our clients and friends of HIG, thank you for entrusting us with your financial journey.

Take the long view,

Matt

“Since the beginning I have always felt a strong sense of relationship with everyone I’ve met and worked with at Hill, “they’re family, they’ve got my back” is the way I describe it to people.”

A recent favorite quote from a client who was kind enough to share an experience with us that wasn’t up to our normal standard. His statement is what we strive for and is a crucial aspect of our culture. Sharing his experience when it wasn’t up to par is the kind of generous relationship we are grateful for at HIG.

At Hill Investment Group, we recognize that when a few clients raise the same question, it’s likely that more have similar thoughts. To better serve you, we’re introducing a new segment in our newsletter where we’ll address common questions and how we approach them. To submit questions for future newsletters, email us at info@hillinvestmentgroup.com

Hey Hill, how can I reduce my IRA Required Minimum Distributions (RMDs) and related retirement tax liabilities? 

Contributing to traditional IRAs and 401(k)s is a great way to save for retirement. You get a current-year tax deduction, and your money grows year in and year out without being hindered by taxes. The IRS never sleeps.  You either pay them now or later.  Therefore, at some point, when you need to access these tax-deferred funds, whether that’s by choice or because you must begin taking Required Minimum Distributions (RMDs), any withdrawals you make from your IRA will be subject to ordinary income tax rates. Therefore, it’s critical to understand the different ways to plan for this most effectively. 

First, what is an RMD? The IRS requires that an individual begin taking systematic withdrawals from their pre-tax/qualified retirement accounts (e.g., 401(k), 403(b), traditional or rollover IRAs, etc.) at age 72, 73, or 75, depending on your date of birth. This annual required mandatory distribution is known as an RMD. You can calculate your projected RMD using the Schwab RMD Calculator. 

While we want our pre-tax retirement accounts to grow and be as large as possible, the taxes that will ultimately be due also grow. An investor can use three strategies to optimize this tradeoff between growth and taxes.

ROTH Conversions

One strategy is to convert assets from your traditional or rollover IRA to a Roth IRA before RMDs begin. When investors are in a low tax bracket, there are often many years between retirement and the RMD start date. Therefore, investors can save a lot in taxes by converting assets during a lower income period.

Let’s consider an example to showcase how this strategy works.

Betsy has just retired at 65 and has $500,000 in her traditional IRA. She must begin taking RMDs at age 73. Her projected RMD at 73 is about $30,000 per year. This amount might bump Betsy to a higher tax bracket in the future and may even increase her Medicare premium costs.

Since Betsy is retired, her reduced income level moves her from the 22% tax bracket to the 15% tax bracket. She decides to convert some of her traditional IRA into a Roth IRA. She withdraws $40,000 annually for the next five years from her pre-tax traditional IRA to fund her Roth IRA. Each year, she pays income tax on the $40,000 distribution but at her new, lower tax rate. This is known as a Roth Conversion. Her money has moved from one tax-advantaged account (the Traditional IRA) to another (the Roth IRA), the taxes are “pre-paid” at a lower rate, and her invested money in the Roth will continue to grow and never be taxed again. By age 70, she has successfully reduced her traditional IRA balance by $200,000, and her RMD at 73 is now projected to be only $18,000 rather than $30,000.

QCDs

But there is even more she can do. Starting at age 70.5, the IRS allows you to distribute funds from your IRA without paying taxes if the funds are gifted directly to a qualified charitable organization. Betsy currently gives $10,000 to her church annually by writing a check from her bank account. Instead, she should direct her Hill advisor to make those payments on her behalf from her IRA. This approach takes advantage of the Qualified Charitable Distribution or QCD. If Betsy’s RMD following her Roth Conversion was projected to be $18,000, by donating $10,000 from her IRA, she will only be taxed on $8,000. By planning 8 years into the future, Betsy’s Hill Advisor has reduced her RMD from $30,000 to $8,000, she will pay less in taxes, and she has a growth Roth IRA for her future needs.

Asset Location

Finally, behind the scenes, Hill manages portfolios by locating the higher-growth assets away from pre-tax accounts and locating the income-producing assets within the pre-tax accounts. This asset location strategy helps minimize future retirement taxes across your entire household. By doing this, you reduce the income taxes you pay year to year and ensure that your high-growth assets get taxed at lower capital gains rates rather than higher income rates.

Both the Roth conversion and the QCD approach, along with Hill’s asset location strategy, are not just tax savvy; they are also strategic moves that can enhance your financial security. By taking the long view on your IRA funds, you can minimize the taxes due and maximize the total dollars you have available to you as you enjoy your retirement.

This information is educational and does not intend to make an offer for the sale of any specific securities, investments, or strategies. Investments involve risk, and past performance is not indicative of future performance. Return will be reduced by advisory fees and any other expenses incurred in the management of a client’s account. Consult with a qualified financial adviser or tax professional before implementing any investment or tax strategy.