Tax Strategies and SALT Limit Impact - The article discusses strategies to keep taxable income below the $500K threshold to avoid increased tax liabilities, particularly through the use of tax-efficient ETFs instead of mutual funds [1][5] - The new SALT (state and local taxes) deduction limit has sparked debate, with some lawmakers arguing it unfairly penalizes residents in higher-tax states, while proponents believe it grants states more authority over tax rates [2] - High earners with adjusted gross income (AGI) over $500K face a "SALT torpedo," which can increase their effective tax rate by 30% due to a phaseout of benefits [3] Investment Opportunities - Commercial real estate investments can provide tax efficiencies through 1031 exchanges, allowing deferral of capital gains taxes when reinvesting in new assets [6] - A real estate investment platform, mogul, offers fractional ownership in high-quality rental properties, providing monthly rental income and tax benefits [7][8] - Each property on the platform is vetted for a minimum 12% return, with an average annual internal rate of return (IRR) of 18.8% and cash-on-cash yields of 10% to 12% [8] Financial Management and Advisory Services - Wealth management services like Range provide tax projections to help clients navigate investment decisions and optimize tax implications [12] - Financial advisors can assist in structuring finances to avoid the SALT torpedo by investing in sheltered assets and maximizing IRA contributions [14]

Core Insights - The article discusses the financial implications of withdrawing funds from retirement accounts during a divorce, highlighting the potential penalties and long-term consequences of such actions. Group 1: Financial Consequences of Withdrawal - Withdrawing funds directly from retirement accounts incurs a 10% penalty plus possible income tax, which could push individuals into a higher tax bracket [1][2] - Removing $70,000 now could result in a loss of over $379,000 in future growth by age 65, assuming a 7% annual growth rate [2] - If funds are transferred to an ex-spouse's retirement account, it can be done tax and penalty-free, reducing the financial burden of early withdrawal [3][7] Group 2: Alternatives to Withdrawal - Immediate access to cash from retirement accounts avoids the need for loans or interest payments, but it may not be the best long-term strategy [4] - Other options include negotiating a payment plan with the ex-spouse, making concessions in the divorce settlement, or borrowing against a life insurance policy [9][10][13] - A combination of withdrawing part of the retirement funds and taking a small personal loan can limit both the retirement impact and debt burden [14] Group 3: Considerations for Decision-Making - Financial advisors generally recommend that withdrawing from retirement accounts should be a last resort, as it can create significant setbacks for future financial security [5] - The decision on whether to withdraw from a retirement account or take on new debt depends on various factors, including the willingness of the ex-spouse to cooperate and the individual's financial situation [15][16]