Thank you for being a valuable part of my network of lawyers and fellow lawyer-loving professionals.
I’m excited to be back in action post-maternity leave and sharing ideas, trends, and advice I’ve been collecting as I work with – and learn from – lawyers and law firms. My goal is to be an aggregator of wisdom for lawyers to help them be more joyful and have a great relationship with their money.
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Our newest little tax deduction:
Tommy Lake Dawson
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TAX PLANNING PEACE OF MIND -
This month you've probably spent at least a few minutes thinking about taxes. And maybe when you think about taxes, you get a little stomach ache or you have a nagging voice in the back of your mind asking you - should you
really
be paying so much in taxes? If so, this list is for you.
Here are the top ways lawyers can help minimize taxes and feel more confident when tax season rolls around.
- Be organized with the basics - K1/W2s, 1099's (and take the time to include "corrected" 1099 forms that often arrive in Feb/Mar), real estate taxes, mortgage interest paid, charitable contributions, etc.; make sure your accountant knows about any job changes, family developments, or side businesses.
- Max out retirement savings - I know you know this one, but it's pretty powerful when you make as much as lawyers do. The max amounts in 2018 are $18,500 for 401(k)s or $55,000 for defined contribution plans (plus catch-up contribution of $6,000 if over age 50).
- Make (and Report) 529 contributions - Don't forget to tell your accountant about any deposits to an Illinois college savings account (4.95% of the max $20,000 = $990 savings on your IL tax return).
- Build up Roth IRA savings - You might be thinking - but don't I make too much to contribute to a Roth? - and you're probably right. But you can still contribute $5,500 to a non-deductible IRA for 2017 by April 15 and then convert it to a Roth. It may be smart tax planning if you or your spouse don't have retirement assets (IRA's) outside of the 401(k).
- Ensure your investments are "tax-efficient" - Ask a financial advisor whether you can do anything to improve your portfolio's after-tax returns with tax loss harvesting, asset location, or avoiding year-end capital gains distributions.
- 2017 IL Taxes - Bonus Income Pre-July 1st - The Illinois state tax rate adjusted from 3.75% to 4.95% beginning July 1st. So if you received significant income prior to July 1st, then you might be better off using "specific accounting method" to split the year in two and allow income to be treated at 2 different rates as opposed to the "apportionment method" which blends the rates. Your accountant will be all over this, but just a note for self-preparers.
- Strategize in the off-season - Consider setting a reminder to reach out to your accountant in May or June for more strategic tax planning conversations when they are less busy. And make sure to connect your accountant and financial advisor so your whole team is on the same page and working together to give you tax planning peace of mind.
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When a woman cries at work, a man often think she's crying because she has conceded the issue.
I think it's important to explain to that man that she is really crying because she is so angry she wants to kill you.
- big law partner
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My job satisfaction has gone up as my experience has gone up.
- female partner at big law firm
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1. Diversification (I would have been crushed in 2008 if I hadn't sold my company stock),
2. Being attuned to taxes (I found this actually offsets my advisor's fee), and
3. Access to lower cost institutional share classes.
- big law partner speaking on a panel about reasons to hire a financial advisor
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When it comes to networking, men are more transactional and women are more relational.
Being aware of the difference in approaches can help bridge the gap and make women more effective in how they network with men.
- Susan Sneider, author of "A Lawyer's Guide to Networking"
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I can't really enjoy X, Y, Z because I'm not convinced I'm on track financially.
I hear different versions of this worry all the time. You are not alone.
The power of planning for the long run is it often allows you to feel more confident and joyful about the spending decisions you make today. If you know you are hitting your savings goals according to plan, then you can feel great about treating yourself or planning an extravagant trip for the family.
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UPCOMING CHICAGO LAW EVENTS
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- Mar 23: CBA Mindfulness Chapter Event
SAVE THE DATE:
Wed, Aug 8 -
Bi-Annual
Breadwinner Women Event
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WOMEN LAWYER STUDY
Please give 9 minutes to take our 100% anonymous survey
or FORWARD TO A WOMEN LAWYER IN NV, NM, NE, MS, LA, or AL
Our mission is to gather substantive, far-reaching data about the perspectives and unique challenges of women lawyers to drive better content and conversations within groups supporting women in law, and to raise the bar for how the financial industry serves women lawyers.
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CLE for Law Firms:
MONEY MATTERS FOR WOMEN LAWYERS
Hemington is proud to have had the opportunity last fall to share our experiences, expertise and passion for helping Breadwinner Women. Thanks to the women's groups and fabulous leaders of
Mayer Brown, DLA Piper, Michael Best, Vedder Price,
The Coalition of Women's Initiatives in Law, and WBAI
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Girls on the Run Chicago -
Spring Give
- Thurs, April 26
As many of you know, I'm the current Board President and huge fan and volunteer for Girls on the Run Chicago, an after-school program for young girls to train for a 5k and learn important life lessons.
Please let me know if you are interested in attending our Spring fundraising event:
MORE INFO HERE.
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Jen Dawson is a Certified Financial Planner (
CFP
®
)
and the Chicago Managing Director of Hemington Wealth Management. With over a decade of experience helping clients have a great relationship with their money, Jen has spent the last two years building a career where she spends 100% of her time helping
lawyers
turn their professional success into financial freedom. She finds these stressed-out, time-starved decision-makers especially appreciate the predictability and peace of mind that comes with a financial plan and outsourcing of all the detailed follow-up items.
Jen’s wealth management approach creates space and vulnerability for conversations about what’s most important in life, and recognizes the importance of a holistic approach to financial well-being – it is not just about numbers. Jen formally works with lawyer clients with over a million dollars of investment assets, but is passionate about helping lawyers of all levels have a better relationship with their money.
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PLEASE FORWARD TO OTHER HAPPY LAWYERS IN YOUR LIFE
and contact Jen with ideas and suggestions for future topics or new connections.
Jen Dawson, CFP
®
312.757.5339
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