Sarah Mahaffa

The nanny tax. How does it work?

When an individual works in someone's home and has specific tasks and responsibilities dictated by the homeowner, the IRS considers that individual a household employee. ... Read More

Can AI help with your finances?

When it comes to finances, many challenges prevent progress, but Artificial Intelligence (AI) has the tools to help solve those problems. AI has the computing power to digest great amount of information and then uses that information to answer questions and trigger actions. ... Read More

COBRA or marketplace health insurance: What’s the difference?

Considering early retirement? Or maybe transitioning from one job to another?  Then you are probably wondering how to maintain your health insurance coverage.  Two common options are COBRA and Marketplace health insurance. Both allow you to maintain or acquire health coverage, but they differ significantly in cost, coverage, and eligibility.... Read More

Understanding the Kiddie Tax: How it works and what parents need to know

A few decades ago, high-income families moved investments into their children's names so their investment income would be taxed at a lower rate. As you might suspect, Congress wasn't a fan of this strategy and retaliated with the Kiddie Tax in 1986, which was restructured in 2018 and again in 2019. ... Read More

Worried about health care expenses?

How much have you spent on your health care in the last 12 months? Would you believe Americans spent $12,914 per person on health care expenses in 2021? That’s a fact, according to the National Health Expenditure Accounts. ... Read More

Personal finance hacks 101

Life is busy, and not enough of us prioritize our personal finances. I have good news! You can move from “flying by the seat of your pants” to confidently being in control without a huge time commitment. It’s all about working smarter, not harder.  ... Read More

Everything you need to know about QCDs

One of the most underutilized and often misreported charitable giving strategies is Qualified Charitable Distributions (QCD). Taxpayers 70.5 and older can use their IRA to gift directly to charity without creating a tax liability. In addition, if required to take annual Required Minimum Distributions (RMDs), the charitable gift will reduce the annual RMD. That sounds like a no-brainer, right?... Read More

Family vacation homes: What’s the plan?

The vacation home where you spent family time growing up holds many wonderful childhood memories. What’s next for that home? Some family members may have strong feelings about keeping the property and others may be okay with moving on. So what can you do now to preserve the family memories and avoid future conflicts?  ... Read More

Planning for the Unexpected

When you engage in the financial planning process, one of the most important elements is contingency planning or preparing for the unexpected. Life doesn’t always play out the way you would like and pivoting from the current plan to the new reality can be overwhelming.... Read More

Loans from The Bank of…. Mom and Dad?

Loan interest rates are rising. At the same time, interest earnings on savings accounts and CDs aren't exactly setting the world on fire!  So what if a family member offers to finance your upcoming purchase instead of using the bank? The borrower avoids dealing with traditional financing and the interest paid stays in the family. Sounds like a win-win, right?! Not so fast. ... Read More