In keeping with the spirit of the season ahead (and, wow, have we ever wanted a Spring to arrive more quickly?) the Editor requested that articles for this issue include examples of beginnings, freshness, enlightenment, and revival – while also emphasizing not only work contributors have performed but work yet to be done with new energy and inspiration.
How can I not oblige?
 By David Bonington, CFP® Financial Planner, Stacey Braun Associates, Inc. |
Today’s article involves a January client meeting – my second appointment of the new year - with one of your colleagues, a 2025 newcomer to Local 237 who noticed a piece I wrote here last year on 2025 changes to personal Income Tax regulations. Naturally, I can’t mention his name, but after reading the article he – let’s call him Marvin to humanize him - thought I might be able to identify ways he could avoid some tax over the next few years, and he started the meeting with this request.
How could I not oblige?
It helped that Marvin had his concerns organized. He had been preparing his own taxes for years, but was not convinced he was taking advantage of all features in his favor. He was also confused about the nature, timing, and amount of 2025’s many changes. He described his family composition (a spouse and two sons), his last 3-4 years of tax experience (payments every April), and wondered about ways saving might also be fruitful from a tax standpoint.
We reviewed activities which would benefit Marvin and his family in future years, including making additional pre-tax retirement plan contributions and opening Section 529 Plan saving-for-college accounts, both of which would reduce tax liability. We then addressed some specific changes and opportunities created by 2025 legislation: the increase in the Standard Deduction; the ability to shield a portion of his Overtime Pay (and, for Marvin’s wife, her Tip Income); the increase in the Child Tax Credit; and the ability of even Standard Deduction taxpayers to deduct a certain amount of their charitable gifts. There was even a “bonus” item when I called Marvin’s attention to a new $12,000, age-based deduction his Over-65 parents qualify for!
As each item was addressed, Marvin asked for a moment to make notes, and kept remarking how his confusion was lifting and being replaced by a clear tax roadmap that was going to make preparation easier and conserve a meaningful amount of money. His end-of-meeting thank you was a sincere, heartfelt one.
After the meeting, I think I was as happy as Marvin was. I thought to myself, “Now, how great is it to have a job where I was able to do this – where, metaphorically, in an hour I helped turn what was a blizzard of confusion, a near-whiteout, into a clear Spring morning?” Some meetings revitalize the Planner as much as the client - and when they occur, I remember why I run to work.
Free, confidential telephone or Zoom sessions with a Stacey Braun planner can be arranged by calling 1-888-949-1925. No financial products are sold and there is no sales pressure.
