Welcome back to the Dollar Wise Podcast. In this episode, Andrew Barnhardt and Brett Herron explore various strategies for saving for children’s futures — whether it's for education, retirement, or general financial support. They break down the pros and cons of different account types, including 529 plans, custodial Roth IRAs, UTMAs/UGMAs, and saving in a parent’s name. Listeners will gain a clear understanding of how to align financial tools with their goals and ensure they’re setting up the next generation for success — without putting their own financial health at risk.

● The tax benefits and flexibility of 529 college savings plans.

● How custodial Roth IRAs can jumpstart retirement savings for teens with earned income.

● Why UTMAs and UGMAs offer flexibility — but come with tax and control trade-offs.

● When it may be better to save in your own name instead of your child’s.

● [00:00:00] Introduction

● [00:00:31] Why saving for kids must come after securing your own financial foundation.

● [00:02:35] Pros, cons, and new rules around 529 college savings plans.

● [00:06:55] How custodial Roth IRAs work — and why earned income is required.

● [00:11:04] The flexibility and limitations of UTMAs/UGMAs for broader financial goals.

● [00:14:59] Saving in your own name: flexibility, control, and important tax considerations.

● [00:20:07] Why segmenting investment “sleeves” can help avoid misusing funds.

● [00:22:07] A quick mention of upcoming TRUMP accounts and what to expect.

1. Saving for your children is important, but make sure your own financial house is in order first.
2. Each account — 529, custodial Roth, UTMA/UGMA, or personal savings — has unique pros and cons.
3. Teaching your child about money can be just as valuable as saving money for them.

Connect with Andrew Barnhardt: abarnhardt@hfmadvisors.com | LinkedIn

Connect with Brett Herron: bherron@hfmadvisors.com | LinkedIn

Like what you’ve heard…

• Learn more about HFM HERE
• Schedule time to speak with us HERE

102 WEST HIGH STREET, SUITE 200

GLASSBORO, NJ 08028

HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information...

Welcome back to the Dollar Wise Podcast. In this episode, Andrew Barnhardt CFP® and Brett Herron CFP® break down the topic of below-the-line tax deductions, offering practical explanations and examples to help listeners understand how these deductions work. They discuss the difference between standard and itemized deductions, key itemized categories like mortgage interest, state and local taxes, charitable giving, and medical expenses, as well as niche areas like gambling losses and casualty losses. Whether you're filing solo or jointly, this episode equips you with the tools to make more informed tax decisions.

● The distinction between standard and itemized deductions.

● Key categories that qualify for itemized deductions.

● Why the standard deduction may be the better choice for most taxpayers.

● How niche deductions like gambling or casualty losses may apply to you.

● [00:00:45] Overview of below-the-line tax deductions and what "the line" refers to.

● [00:02:21] What the standard deduction is, how it works, and current deduction amounts.

● [00:03:36] Introduction to itemized deductions and how to decide between the two options.

● [00:04:51] Mortgage interest as a deductible expense and related loan qualifications.

● [00:05:55] State and local tax (SALT) deductions and recent changes to the cap.

● [00:07:27] Charitable contributions and which types of donations qualify.

● [00:08:13] Medical and dental deductions, including niche examples.

● [00:09:28] Gambling losses and how tax offsets now work differently.

● [00:10:50] Casualty losses in federally declared disaster areas.

● [00:12:26] Final recap of how to decide between standard and itemized deductions.

1. You can only take one: either the standard deduction or itemized deductions — whichever is higher.
2. Itemized deductions include categories like mortgage interest, SALT taxes, charity, and medical expenses.
3. Uncommon deductions, like gambling losses or casualty losses, may apply in specific situations and should be reviewed with a tax professional.

(00:04:51) "You can't take out money in the form of a home equity line of credit to go on a vacation and deduct the interest. No, no Ferraris with your home."

(00:09:28) "We might be if you have an obscure ailment that you think can help you write off an in-ground swimming pool — we'd love to hear about it."

Connect with Andrew Barnhardt: abarnhardt@hfmadvisors.com | LinkedIn

Connect with Brett Herron: bherron@hfmadvisors.com | LinkedIn

102 WEST HIGH STREET, SUITE 200

GLASSBORO, NJ 08028

HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments...

Welcome back to the Dollar Wise Podcast. In this episode, Andrew Barnhardt and Brett Herron of HFM Advisors dive into the world of above-the-line tax deductions. These often-overlooked deductions can reduce your adjusted gross income and improve your eligibility for other tax benefits. From retirement contributions and HSAs to student loan interest and self-employment tax breaks, Andrew and Brett break down how these deductions work, why they matter, and how to take advantage of them. Whether you're planning for next April or the next decade, this episode offers a practical look at reducing your tax bill.

● Why above-the-line deductions matter for your tax planning strategy.

● How HSAs and retirement plans offer triple tax advantages.

● The difference between above-the-line and below-the-line deductions.

● Lesser-known deductions like student loan interest and self-employment tax offsets.

● [00:01:00] Why tax planning is a year-round activity and the role of above-the-line deductions.

● [00:03:04] Key differences between above-the-line and below-the-line deductions.

● [00:05:34] How retirement contributions reduce your taxable income.

● [00:06:30] The triple tax advantage of Health Savings Accounts (HSAs).

● [00:08:20] Student loan interest deduction and its phase-out thresholds.

● [00:09:37] Self-employment tax deductions and how they encourage small businesses.

● [00:11:08] Humorous examples of niche deductions: Olympic medals, timberland, IRS tip-offs.

● [00:13:15] Why adjusted gross income is the “halftime” point of your tax return.

● [00:14:22] Tease for upcoming episode on below-the-line deductions.

1. Above-the-line deductions reduce your adjusted gross income and can unlock other tax benefits.
2. Common deductions include contributions to retirement accounts, HSAs, and student loan interest.
3. Understanding and using these deductions can significantly lower your tax liability year after year.

Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn

Like what you’ve heard…

• Learn more about HFM HERE
• Schedule time to speak with us HERE
• Check out our Financial Wellness Program – HFM Ignite

102 WEST HIGH STREET, SUITE 200

GLASSBORO, NJ 08028

HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.