We’ve got the latest insights, practical tips, and updates to help you make smarter financial decisions and move closer to financial freedom. Whether you’re planning for taxes, tracking your investments, or just staying informed, there’s something here for everyone.

Cafeteria Plans (Section 125 plans) allow employees to pay for certain benefits with pre-tax dollars instead of taxable wages, reducing federal, state, and payroll taxes and increasing take-home pay. Common tax-saving benefits include health insurance premiums, FSAs, HSAs, and dependent care, all subject to IRS limits and eligibility rules. To preserve these advantages, plans must comply with strict IRS documentation and nondiscrimination requirements. By changing how compensation is taxed rather than how much is earned, Cafeteria Plans can deliver meaningful savings. For higher-income employees, those savings can amount to thousands of dollars each year.

Covered call ETFs have grown in popularity as investors search for higher income and smoother returns, particularly during periods of market uncertainty. While these funds can play a valuable role in certain portfolios, they are often misunderstood. Their attractive yields come with meaningful trade-offs that make them fundamentally different from traditional equity ETFs.

Mind capital gains holding periods
Long-term gains (over 1 year) are taxed at lower rates than short-term gains.

Use Donor-Advised Funds (DAFs)
Get the deduction now, give to charities later—great for high-income years.

Self-employed? Deduct health insurance
Often deductible above-the-line, even if you don’t itemize.

Wealth is built slowly
Consistency beats intensity—boring is beautiful.

Plan for major life events
Marriage, kids, home purchases, and retirement require foresight.

Insure against big risks
Health, disability, life, and liability insurance protect your foundation.

That’s a wrap for this week! Remember, small, consistent steps in managing your taxes, finances, and investments can have a big impact over time. Stay informed, take action, and keep moving closer to financial freedom.

This newsletter is for informational purposes only and is not financial, investment, or tax advice. Always consult a qualified professional regarding your specific financial situation before making decisions.

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Stay savvy, stay empowered,
— The TaxFi Solutions Team